Category Archives: new companies

THIS AIN’T CHICAGO

by Mark T Wayne

For a week I have endured close association with that foul animal, Loop Lonagan.  The more I learn about the man, the more I like my dog.  Now, Old Man Ludditis wants a rundown on our trip to Chicago’s hottest startup, so we’re both here at his bar, drinking his liquor.

The Lonagan creature slobbers with enthusiasm to tell the story.  “Dis place’s way up dare,” he says in his ungrammatical vernacular as he slides across the first photograph from the trip.  Yes, this place is way up there—that much is true.  It’s northern Manitoba, the 55th parallel, where we enjoy cool weather in the summer, and it never gets entirely dark.

But the creature’s mouth is running on.  “No roads!  Just trees ‘n’ lakes fer hunerds o’ miles.”  

I agree with that statement.

“It’s the only lodge on a huge lake.”

 Also true.   

“And you can dip a cup over the side o’ the boat ‘n’ drink da water!”

Right again.  Strange.  Lonagan may break a record for being upright tonight.  Maybe.

“Pike ‘n’ walleye so thick you can walk on their backs.  Six of ‘em jumped right in the boat and almost sunk it. Anudder one took a flying leaped and bit my rod in half on da way by. 

Somewhat exaggerated.

Fer bait we use baseball bats with huge treble hooks and throw ‘em all day.  I’m still sore.”  He rubs his shoulder, rather dramatically to my way of thinking. “We caught more’n a thousand fish apiece!”

That string of whoppers snaps his winning streak.  Normally I would not presume to steal a man’s thunder, but a half-truth is the most cowardly of lies and I feel duty-bound to correct errant reporting that may appear in our journal.  Yes sir.  This low-brow has sunk to self-aggrandizement and for no good reason; the fishing up there is so astounding that exaggeration is not required.

Here are the facts:  The lake is stocked by God and God alone, and the waters team with life.  Northern Pike in the 42-49 inch range are not uncommon, and they dutifully log such trophies in the Master Angler records, available to all.

Giant baits are not required. One-ounce spoons are what the pike crave, for reasons that escape me.  They are eager to bite and do so with savage alacrity.

The foul Lonagan’s count is somewhat inflated as well.  I believe 520 was the number of fish between the three of us.  Four days is around 28 hours in the boat and that works out to a fish about every three minutes on average.  I think.

But the man runs on with his drivel. “Flies and mosquitos crawl all over yer face, crawl across yer eyeballs, ‘n’ you can’t eat nothin’ without dem things gettin’ in yer mouth.”

Another outright lie.  We experience few flies and mosquitoes.  Perhaps fishermen foolish enough to walk directly into the dense woods suffer such iniquities, but personally, I do not understand that kind of behavior.  No sir!  There are plenty of trees to target on the fringe.  I never reached for the bug spray the entire trip and I can only assume that Lonagan wants to scare other sportsmen away from what he regards as his private fishing hole.

All this begs the question, What does fishing have to do with Chicago startups?’ My response is the same as in the past.  The lodge opened its doors in recent years using private equity, so it is a startup.  All who come here either hale from Chicago, once did so, or must pass through our fair city, so it qualifies as a Chicago startup.

Let me also point out that every budding Chicago entrepreneur requires vigorous alternate activity to effectively rest and return to battle.  A fishing trip such as this stimulates innovation and is therefore vital to a company’s bottom line.  Excellent fishing provides an elixir to top management—an essential part of doing business, and it is an admirable location for a board meeting.  Therefore I can state unequivocally that we were at this location performing important research—not goofing off.

Now, as we huddle around the Formica table, I raise my expertly crafted mint julep in a toast.  “Gentlemen.  We met at this very place, not two years past, to choose a gift for Jonelis, our fearless leader.  And I wish to point out that without the mentorship of today’s host, we may have invested in some foolish gewgaw.  But we did not.  Instead, we wisely selected an outing at this magnificent wilderness locale.  Let us raise a cheer to a man whose wisdom and kindness is a language which the deaf can hear and the blind can see. I toast Donatas Ludditis!”

We all raise our glasses.  Our host smiles sweetly while Lonagan chugs single malt from his tumbler, then belches.  I clearly hear him remark under his breath: “Windbag.”

Passing over this crass interjection, I address my comments to our host.  “The irresistible draw of the wild stands as the only sufficient excuse for having traveled with a lowlife like Lonagan.  Now behold how the man does sneer, and swell, and soar, and blaspheme the sacred name of Truth.  I should choose my companions more wisely.”

Lonagan’s face turns purple with rage. “You miserable old fossil…ya leftover from da musty past…I dunno how I survived four days in a boat with a useless crank like you.  Shoulda left you at da bottom o’ the lake!” 

I ignore him and turn back to our host in a confidential manner.  “Never argue with an idiot.  Onlookers may not be able to tell the difference.”

“Shuttup ya—ya hack writer!”  Lonagan swings his meaty fist in a long reaching punch.

He crashes forward, belly first, splitting the table in twain and, in a more serious loss, he sweeps our drinks to the floor.

The force of his dive tips my chair back and as I fall, I see Old Man Ludditis swinging the whiskey bottle.  It connects across the lout’s shoulder.  Glass shards fly and whiskey floods the area worse than during business hours. “I no want fight in my bar,” He shouts. “You fight, you go outside.  This is place of peace.” 

As I pick myself up, I reflect on Lonagan’s huge fists.  They can do damage and have done so to many who are sorry to learn of it.  But I have avoided any repercussions because he missed the mark.

Our host dusts himself off, then produces a walnut out of nowhere and calmly cracks it using the crook of his left arm.  The pieces fall to the floor and he then cracks another.  Then another.

Those walnuts are a helpful reminder and I imagine a skull might make such a sound—my skull.  But this kind of rich old-world charm always soothes my ire, and it seems to do the same for the creature Lonagan, who appears unharmed.  Yes sir!  We are in Ludditis’ establishment, drinking his liquor, and cannot justifiably argue with such a sweet old gentleman who once boasted the title of chief enforcer for the Lithuanian mob (retired).  After all, what are a few hot words among friends?

We repair to another table and I for one, resolve to comply with the old man’s wishes—for now.  I sip my drink, and bide my time.  “Go ahead Lonagan,” I say, “tell him all about it.”

The man sneers at me, then goes to work. “We had lotsa heavy weather—kinda rough fer that tiny little pontoon plane.  Pilot passed out from fright ‘n’ I hadda take over the controls.  First time I ever landed on water so it wasn’t real pretty.” 

We never saw any thunderclappers.  The man spouts these lies without so much as a grin.  With mild and mannerly aplomb, I say, “It’s no wonder that truth is stranger than fiction. Fiction has to make sense.”

“You callin’ me a liar?” 

“Well, perhaps it’s the best you can do.  A casual read of Scripture will show that man was made at the end of the week’s work, when God was tired.”

Lonagan’s eyes bulge and he stands for a repeat performance.

“I say no fight here! You boys shake hands.   Mr. Wayne, please let Loop tell it his own way.” 

Our host is right.  Don’t wrestle with pigs. You both get dirty and the pig likes it.  But for the record, we traveled by luxurious turboprop, tricked out with air conditioning, reclining leather seats, and a pretty stewardess who earnestly plied us with food and drink.  In an hour and a half, it whisked us away from Winnipeg, 500 miles north to a private gravel strip carved out of the forest.  But Lonagan has been babbling all this time.

Now he brandishes a photograph. “…and dis huge bear chased us back to our boat.  We barely escaped alive.”  More nonsense.  I’m shocked that the man didn’t claim to have fought it with his bare hands.  Perhaps that didn’t occur to him.  We saw the bear from the boat and went elsewhere for shore lunch.

“…beans fer breakfast.  Beans fer supper.”  I believe this is about as barbarous an exhibition as I have witnessed yet.  He exaggerates the fishing and then disparages the food.  He bolsters his ego on the backs of invented clap-trap deprivations.  It may be thought that I am prejudiced against the man.  Perhaps I am.  I would be ashamed of myself if it were not so.

Permit me to straighten out the matter. The guests congregate for breakfast and dinner in a large and beautifully crafted log lodge, and start the day with eggs, bacon, Red River Cereal, juice and hot coffee, and for dinner, steak, pork chops, barbeque ribs—all you can eat and all the trimmings, served graciously with table cloths and silverware—tools that Lonagan does not know how to use properly.

But shore lunch is the grandest treat of all.  Our guide chops wood, builds a fire, then cleans and cooks the walleye we just caught.  Ah shore lunch!  Beer batter walleye, honey garlic walleye, sweet and sour walleye.

And yes, I long to return, even if doing so means that I must put up with Lonagan.  Because this ain’t Chicago.  No sir!  This is North Star Executive Outpost on Knee Lake, Manitoba.

I make no apology for detailing the above information.  It will be news to some of my readers, at any rate.

Go to North Star website

Read BEST GIFT

Go to first installment – ROUGHING IT

Credits

Photos by John Jonelis

Some juicy quotes from Mark Twain.

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money..Copyright © 2019 John Jonelis – All Rights Reserved
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CONTROLLED DESIGN MANAGEMENT – Part 4

By Moises J Goldman & John Jonelis

Today’s business culture is more strongly creative and entrepreneurial than at any time in history, posing new organizational opportunities and challenges.  That calls for a new way to think about and implement design management.  This is the final installment of a four-part series introducing the Controlled Design Management Model.  Using the language of the digital age, this model applies a radically different technique to managing the creative process.  The history and theory was discussed in Parts 1 through 3.  Now let’s set up a working model. 

Figure 6 – Controlled Design Management Model

Practical Example

Let’s optimize an organization using a Controlled Design management Model.  For clarity, this particular enterprise is engaged in the deployment of a product and has just three primary departments:

  • MARKETING DEPARTMENT – Produces market research, and marketing planning. The input to this department is idea generation from its founders, its research wing, or its own internal analysis. Its output is the product concept, complete with all the required features and characteristics that the market requires in tandem with a marketing plan for a successful launch.  Marketing’s output serves as the input for Systems Engineering.
  • SYSTEMS ENGINEERING DEPARTMENT: Translates the marketing requirements into engineering concepts, tests their feasibility (simulation), and produces the required technical maps and schematics to be able to create a working prototype. Its input is the output from Marketing. Its output is the technical representation of the product, including mathematical and simulation results, schematics, and mock-ups.  This becomes the input for Applied Engineering.
  • APPLIED ENGINEERING DEPARTMENT: Creates and tests a physical prototype until it is ready to deploy. (We’re not taking into consideration production or logistics in this example.). Applied Engineering starts with the output from System Engineering. Its output is the finished prototype ready for testing and then deployment by Sales.

We have three departments.  Each is solely responsible for the optimization and efficiency of its own particular function within the organization.  Each is in a dependent, sequential relationship with two other departments.  Now, we link the individual department’s optimizing flow chart (from Figure 6) into one companywide Controlled Management Model.  (See Figure 7.)

Figure 7 – Optimized Departments

Let’s look at application.  Based on Figure 7, it’s clear that to achieve optimum productivity, a department must minimize internal disturbances.  Examples of such disturbances include underperforming employees, faulty data, equipment malfunctions, changes in existing regulations, policy changes induced by government, budgetary restrictions, new competition, company restructuring.  All of these are down-to-earth practical matters, as are the corrections, which are ordinary responses and decisions.  What is new is the simple structure of the decision-making process and the ability to map it and to know exactly where, in the larger picture, you are at any given time.  That helps eliminate bottlenecks and confusion, and helps address a problem early—before a weakness becomes magnified down the line.

Conclusion

Does the Controlled Design Management Model meet the goals stated earlier in the paper?

  • Intuitive – The management system is readily understood and implemented using visual tools in the language of the digital age. It entirely bypasses complex mathematics as well as the sequential categorization of past models.
  • Adaptable – It does not impose a particular organizational structure but rather adapts to any.
  • Focused – Departments do not involve themselves in the optimization of other departments—each is concerned only with what is under its direct control.
  • Practical – It provides a roadmap for effectively optimizing and controlling the release of any new product. Each department’s optimization is a benefit to the workflow of the entire organization.
  • Measurable – Because the sum of independent optimized departments adds up to the optimized organization, upper management can easily map and manage the progress of each department and the entire organization. Even in a complex organization, it is a simple matter to identify the bottlenecks in the process.

The Controlled Design Management Model works with the same basic material as all previous models—people, ideas, and structure—but does so from an entirely different perspective, using different thinking and tools—the very same principles as electronic control system design.  It provides a practical digital approach in a digital age.

Go back to Part 1

Download full paper (PDF)

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References

  1. Deming, W. Edwards (1964) [1943].  Statistical Adjustment of Data. Dover. ISBN 0-486-64685-8. LCCN 64-24416. (1966) [1950].  Some Theory of Sampling. Dover. ISBN 0-486-64684-X. LCCN 66-30538.
  2. William Ouchi: “Theory Z” How American Business can meet the Japanese Challenge.  Addison-Wesley Publishing Company, 1981
  3. Lean was originated by Eiji Toyoda and Taichi Ohno of Toyota Motors.   Ohno, Taiichi (1988), Toyota Production System: Beyond Large-Scale Production, Productivity Press, ISBN 0-915299-14-3
  4. C. F., L. S. Shieh, Joint Automatic Control Conference, Michigan, p 454
  5. Shieh, L.S. and Goldman, M. J., 1974 I.E.E.E. Trans. Circuit Syst., 21, 341
  6. The Hollow Corporation, Anita Campbell, Small Business TRENDS (2012)  https://smallbiztrends.com/2004/04/hollow-corporation.html

Graphics

Flow-charts by Moises Goldman and John Jonelis.

Graphics from MS Office.

About the Authors

Dr. Moises J Goldman holds an MSEE and a PhD in Engineering Systems from UCLA, specializing in large-scale systems, process optimization, and product innovation. MBA from MIT Sloan, specializing in strategic planning and business development.  His focus is on periods of challenge and change, including startup, growth and restructuring.  Goldman served as CEO, COO, and CTO in diverse industries and developed business across the USA, Germany, Spain, Mexico, Dominican Republic, Jamaica, and Brazil, working with small firms as well as branded giants such as Lockheed, Rockwell, ATT, America Movil, GM, Ford, Scotia Bank, and HSBC. Sits on several boards where entrepreneurship and innovation are the primary goals.  Consults to merging companies during the integration phase as well as startups, helping them become going concerns. Member of several advisory boards at MIT.  Founding member of the TALENT program at IMSA.  Dr. Goldman can be reached at Moises.Goldman@outlook.com

John Jonelis patented seven products and developed dozens more in the field of air pollution control.  Created the Revelation suite of trading algorithms.  Private equity investor.  Artist.  Writer, and publisher of Chicago Venture Magazine and News From Heartland—the Journal of the Heartland Angels.  Author of the novel, The Gamemaker’s Father.  Illinois Wesleyan BFA, 1974.  Kellogg MBA 1989.

 

Copyright © 2019 Moises Goldman & John Jonelis. All rights reserved. Quotation with attribution is permitted for educational purposes.

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money..
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CONTROLLED DESIGN MANAGEMENT – Part 3

By Moises J Goldman & John Jonelis

Our business culture has evolved and attitudes have re-aligned.  In sharp contrast to the past, creative employees have finally gained the acceptance and respect they deserve for the crucial role they play in organizational success.  The business climate is faster-paced, than ever—rapidly changing, and multicultural.  Staunchly individualistic leaders backed by a computer savvy workforce characterize our high tech companies, and increasingly, our entrepreneurial ventures.  It is important to appreciate that sequential charts of managerial jargon are no longer well received.  Such things impose uniformity, and uniformity is anathema to today’s creative workforce.  Under these circumstances, it is extremely challenging to manage product design using yesterday’s managerial paradigms.

This is the third of four installments.  We’ve explored the history and current state of modern management philosophy.  Now, we will introduce an entirely new mode of thought—the Controlled Design Management Model.

To be meaningful in today’s culture, any shift in management strategy must meet certain critical standards.  It must be intuitive, adaptable, focused, practical, and measurable.  These are the goals we will set out to achieve.

  • Intuitive and Adaptable – No rigid chart or schematic to implement.
  • Focused – A practical structure, which zeros in on workflow.
  • Practical – Departments will implement the model themselves.
  • Measurable – Management can track progress.

In order to achieve these goals, we must build self-optimization into the product cycle and to meet that end, we base our new thinking on Control Systems Theory, as used in such places as computerized system controls and inertial navigation systems.  We call it the Controlled Design Management Model.  For the purposes of this paper, we will circumvent the complex mathematics of Control Theory and present the ideas in an intuitive format, reducing key concepts to graphical form.

Controlled System

At its most basic form, a Controlled System is a process by which an objective or Input generates an outcome or Desired Output.  Suppose, for example, that the system is a bicycle factory and we are trying to build a super bicycle.  If the factory, as a system, behaves appropriately, then the factory will output the desired output – a super bicycle.  If, on the other hand, the factory does not operate appropriately, the output will be an undesired outcome – perhaps a tricycle.  It will be useful to reduce this to graphical form.  (See Figures 3a and 3b.)

Figure 3a – Controlled System

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Figure 3b – Uncontrolled System

This may seem rather simplistic, so let’s build on it.  To make the system self-optimizing, we add a feedback loop to the above diagram. (See Figure 4.)  When the desired outcome becomes equal to the desired objective, then the error (or difference between objective and outcome) will be zero.  Else, corrections are made (called “pivoting” in Lean Theory) until we eventually arrive at the MVP or initial product deployment. 

Figure 4 – Simple self-optimizing Controlled System

Let’s see what this elementary flow chart accomplishes.  We plot the input and output of the above system, where Time is the X-axis and Magnitude is the Y-axis and produce a graph.  The process swings back and forth until it navigates the optimal path.  (See Figure 5.  Note the similarity to an internal navigation system.)

Figure 5 – Self-optimization through a feedback loop

From Figure 5, we surmise that the output reaches steady state, at t(1) which is when the desired objective is equal to the desired outcome, rendering the error equal to zero.  The behavior of the output prior to reaching t(1) is called the transient response and beyond t(1) is called the steady state response.

  • Transient Response is composed of idea, concept, feasibility, and definition (from the Traditional Model).
  • Steady State Response is composed of Deployment, Growth, and Maturity (from the Traditional Model) and the release of the Minimum Viable Product or MVP (from the Lean Model).

Transient Response relates to the problems of developing a product or process.  It might look like the following example:  How can we make an elevator reach the twelfth floor more quickly?  In actual practice, it may stop at any number of floors on the way, and even overshoot floor twelve before coming back to open the doors for you. Any number of solutions may be proposed.  We examine goals, stretch technology, and make tradeoffs.

Steady State Response deals with entirely different concerns.  The MVP of an optimized elevator schedule is ready to launch.  How can we standardize, market, deploy, and improve the new design or schedule?

Can we control how fast the outcome will reach its objective?  The answer is yes.  Goldman, Shieh, and Chen proved this many years ago by using the Second Cauer Form of continued fractions expansion.4, 5  Let’s look at it in graphical form.  By applying a few minor modifications to Figure 4, we have a self-optimizing module:

Figure 6 – Controlled Design Management Model

Figure 6 differentiates Transient from Steady State responses and adds an Internal Disturbance, representing noise due to poor product design, faulty test equipment, poor engineering, and other considerations. The optimization process reduces such noise closer and closer to zero via the process of a feedback loop.  Mathematically speaking, this is the same controlled system as in Figure 3(a), but this representation depicts the separate influences of the transient and steady state responses.

A New Perspective

What advantages does the Controlled Design management Model offer over the Lean and Traditional Models? The first is simply knowing which phase of the model contributes to the transient portion—idea, concept, feasibility, development—and which phase contributes to the steady-state portion—final deployment, growth and maturity of the design. For management, this is critical.

  • By controlling the part of development that contributes to the transient response, management can optimize the rise time and minimize time to deployment.
  • By controlling the factors that contribute to the steady state response, management can optimize the deployment, growth, and maturity of the product.

A mid to large organization includes many and varied departments through which product development flows from idea generation to maturity. What are some of the advantages to our new model?

  • By describing our model in the language of the digital age, each individual department can easily put it into practice.
  • Each department is responsible ONLY for what it can control. Each is given a unique decision input and desired output.
  • Each department can optimize its output using the model. This, in turn, yields an optimized organization.  An optimized organization is, quite simply, the sum of the optimized departments.

Next, we’ll demonstrate these ideas with a practical example.

Coming next: Part 4

 Go back to PART 1

 Download full paper (PDF)

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References

  1. Deming, W. Edwards (1964) [1943].  Statistical Adjustment of Data. Dover. ISBN 0-486-64685-8. LCCN 64-24416. (1966) [1950].  Some Theory of Sampling. Dover. ISBN 0-486-64684-X. LCCN 66-30538.
  2. William Ouchi: “Theory Z” How American Business can meet the Japanese Challenge.  Addison-Wesley Publishing Company, 1981
  3. Lean was originated by Eiji Toyoda and Taichi Ohno of Toyota Motors.   Ohno, Taiichi (1988), Toyota Production System: Beyond Large-Scale Production, Productivity Press, ISBN 0-915299-14-3
  4. C. F., L. S. Shieh, Joint Automatic Control Conference, Michigan, p 454
  5. Shieh, L.S. and Goldman, M. J., 1974 I.E.E.E. Trans. Circuit Syst., 21, 341
  6. The Hollow Corporation, Anita Campbell, Small Business TRENDS (2012)  https://smallbiztrends.com/2004/04/hollow-corporation.html

Graphics

Flow-charts by Moises Goldman and John Jonelis.

Graphics from MS Office.

About the Authors

Dr. Moises J Goldman holds an MSEE and a PhD in Engineering Systems from UCLA, specializing in large-scale systems, process optimization, and product innovation. MBA from MIT Sloan, specializing in strategic planning and business development.  His focus is on periods of challenge and change, including startup, growth and restructuring.  Goldman served as CEO, COO, and CTO in diverse industries and developed business across the USA, Germany, Spain, Mexico, Dominican Republic, Jamaica, and Brazil, working with small firms as well as branded giants such as Lockheed, Rockwell, ATT, America Movil, GM, Ford, Scotia Bank, and HSBC. Sits on several boards where entrepreneurship and innovation are the primary goals.  Consults to merging companies during the integration phase as well as startups, helping them become going concerns. Member of several advisory boards at MIT.  Founding member of the TALENT program at IMSA.  Dr. Goldman can be reached at Moises.Goldman@outlook.com

John Jonelis patented seven products and developed dozens more in the field of air pollution control.  Created the Revelation suite of trading algorithms.  Private equity investor.  Artist.  Writer, and publisher of Chicago Venture Magazine and News From Heartland—the Journal of the Heartland Angels.  Author of the novel, The Gamemaker’s Father.  Illinois Wesleyan BFA, 1974.  Kellogg MBA 1989.

Copyright © 2019 Moises Goldman & John Jonelis. All rights reserved. Quotation with attribution is permitted for educational purposes.

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money..
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CONTROLLED DESIGN MANAGEMENT – Part 2

by Moises J Goldman & John Jonelis

In the early 2000s, after the internet bubble burst, it became abundantly clear that the US needed a new competitive edge.  A product management philosophy took hold, called Lean—Lean Development, Lean Manufacturing, Lean Planning, Lean Sigma, Lean Start-up. 2  Lean is a management philosophy that considers any part of the enterprise, which does not directly add value to the final objective, as superfluous—be it product development, customer service, or for that matter, the entire enterprise.  It examines all processes and eliminates the ones that do not add value to the end objective.   Lean is an attempted departure from the traditional way of doing business.  It found favor in the US and, to one extent or another, became a dominant model.  This is the second installment of a four-part article about managing creative enterprises. 

Lean

In Lean Management, a project is broken into two phases.  Phase 1 – Stealth Mode – represents the alpha version of a product.  The nascent prototype is tested in the internal company environment.  Further development leads to a beta version for which certain companies, by invitation, test the product before release to manufacturing.  Phase 2 – Market Mode – represents the completion, approval, and release of an MVP—minimum viable product—which then goes through a correction phase that includes bug fixing.  At the same time, a company will test features. This includes, by implication, changes to marketing plans, sales strategies, etc. (See Figure 2.)

Figure 2 – Lean Development Mode

The Lean Model does a superb job of describing the modern way of thinking about the product cycle, but the same thinking that governs the Traditional Model drives it.  As before, it finds expression as a high-level sequence.  It provides a manager no road map to improve a situation, and instead depends entirely on personal talent and resourcefulness to win the day.

Traditional vs. Lean

Lean presents certain points of emphasis that distinguish it, such as the MVP, but the irony is that when we compare the Lean Model to the Traditional Model, we find that they are basically the same.

  • Idea, Concept and Feasibility” in the Traditional Model are no different from “Objectives, Ideation, Definitions, and Mockups” in the Lean Model.
  • “Preliminary Business Case, Definition, and Final Business Case” in the Traditional Model are not any different from “Proof of Concept and Alpha Version” in the Lean Model.
  • “Development” and “Deployment” in the Traditional Model is the same as the “MVP and Releases X” in the Lean Model.
  • “Initial Growth” in the Traditional Model is the same as “Release 2.0 and Releases 2.X” in the Lean Model.
  • “Maturity” in the Traditional Model is no different from “Release 3.0 and Releases 3.X” in the Lean Model.

Obviously we could point out more similarities and the reader may ask what we have gained out of the so call Lean Model.  The answer is actually quite profound: A significantly different perspective on the same thing. 

New management models may induce radical change in various ways, but companies will always consist of people, their ideas, and a structure.  A commercial concern can be described as the organized creation and distribution of products and services.  That probably will not change.  So we are dealing with the same basic material, but the point of view and emphasis makes the difference between one model and the next.  The change in perspective can be highly valuable and the ramifications extreme.  Compare for a moment some of what has already been discussed:  Japan’s renaissance in the 1980s, JIT, Lean, and the Hollow Corporation.  But we can do better.

The Current Environment

Today, automation is reversing the problem of cheap overseas labor and increasingly bringing manufacturing back to our shores.  We are only at the beginning of this new cycle.  Meanwhile, a new entrepreneurial economy is bursting forth.  Design is moving to center stage.  Our business culture has evolved and attitudes have re-aligned.  In sharp contrast to the past, creative employees have finally gained the acceptance and respect they deserve for the crucial role they play in organizational success.  The business climate is faster-paced, than ever—rapidly changing, and multicultural.  Staunchly individualistic leaders backed by a computer savvy workforce characterize our high tech companies, and increasingly, our entrepreneurial ventures.  It is important to appreciate that sequential charts of managerial jargon are no longer well received.  Such things impose uniformity, and uniformity is anathema to today’s creative workforce.  Under these circumstances, it is extremely challenging to manage product design using yesterday’s managerial paradigms.

Along with previous models, Lean has proven its worth.  But once again, current conditions call for an entirely new point of view—a clear and simple model that works with creative organizations that have no patience with past modes of operation—a model that adapts to most every organization regardless of mission and organizational structure.  We all seek efficiency and excellence in our design and manufacturing processes, and we emphasize these objectives more than we do any others.  Today, for the release of any complex product, we need a new model that optimizes and controls efficiency and excellence.

The Controlled Design Management Model

At their root, all the models that have gone before are based on the same kind of thinking—the placing of categories in the right sequence.  Now we will come at the problem from with a different set of criteria and a different mode of thought.  We will lay aside any disputes between high-level models, and in fact adapt to most any sequential life cycle that an organization embraces.

The next article will describe this radically new way to manage creative organizations.

Continue to PART 3

Go back to PART 1

Download full paper (PDF)

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References

  1. Deming, W. Edwards (1964) [1943].  Statistical Adjustment of Data. Dover. ISBN 0-486-64685-8. LCCN 64-24416. (1966) [1950].

Some Theory of Sampling. Dover. ISBN 0-486-64684-X. LCCN 66-30538.

  1. William Ouchi: “Theory Z” How American Business can meet the Japanese Challenge.  Addison-Wesley Publishing Company, 1981
  2. Lean was originated by Eiji Toyoda and Taichi Ohno of Toyota Motors.   Ohno, Taiichi (1988), Toyota Production System: Beyond Large-Scale Production, Productivity Press, ISBN 0-915299-14-3
  3. C. F., L. S. Shieh, Joint Automatic Control Conference, Michigan, p 454
  4. Shieh, L.S. and Goldman, M. J., 1974 I.E.E.E. Trans. Circuit Syst., 21, 341
  5. The Hollow Corporation, Anita Campbell, Small Business TRENDS (2012)  https://smallbiztrends.com/2004/04/hollow-corporation.html

Graphics

Flow-charts by Moises Goldman and John Jonelis.

Graphics from MS Office.

About the Authors

Dr. Moises J Goldman holds an MSEE and a PhD in Engineering Systems from UCLA, specializing in large-scale systems, process optimization, and product innovation. MBA from MIT Sloan, specializing in strategic planning and business development.  His focus is on periods of challenge and change, including startup, growth and restructuring.  Goldman served as CEO, COO, and CTO in diverse industries and developed business across the USA, Germany, Spain, Mexico, Dominican Republic, Jamaica, and Brazil, working with small firms as well as branded giants such as Lockheed, Rockwell, ATT, America Movil, GM, Ford, Scotia Bank, and HSBC. Sits on several boards where entrepreneurship and innovation are the primary goals.  Consults to merging companies during the integration phase as well as startups, helping them become going concerns. Member of several advisory boards at MIT.  Founding member of the TALENT program at IMSA.  Dr. Goldman can be reached at Moises.Goldman@outlook.com

John Jonelis patented seven products and developed dozens more in the field of air pollution control.  Created the Revelation suite of trading algorithms.  Private equity investor.  Artist.  Writer, and publisher of Chicago Venture Magazine and News From Heartland—the Journal of the Heartland Angels.  Author of the novel, The Gamemaker’s Father.  Illinois Wesleyan BFA, 1974.  Kellogg MBA 1989.

Copyright © 2019 Moises Goldman & John Jonelis. All rights reserved. Quotation with attribution is permitted for educational purposes.

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money..
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NORTH STAR

by John Jonelis

We catch 647 fish here in 4 days.  On average, that’s a pike every 2.8 minutes.  This place is wild, unspoiled, perhaps like this continent a thousand years ago and summer feels like spring.

Huge northern pike.  Gorgeous scenery.  What man can resist a fishing expedition?

I am visiting my favorite startup company—North Star Executive Outpost on Knee Lake, Manitoba.  It’s a paradise—a northern pike factory in the breathtaking Canadian wilderness.  No roads.  Accessible only by air.  Just one lodge on a 50-mile-long stretch of pure water where God and God alone stocks these hearty fish that grow to such prodigious proportions and feed so ferociously.

Six hundred forty seven fish.  Don’t believe me?  I assure you, we keep an accurate count.  Got to.  Boat bets.  Loop Lonagan and Jim Kren will skin me alive for lying about a thing like that.

On day #2, a pike manages to hit my lure before swallowing its previous meal and yes, I count two fish caught on one cast.  The bite is on!

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Shore Lunch

Every day we pause to catch a few fat walleye and then land our boats at a likely island to participate in a great Canadian custom—shore lunch.  The guide cuts wood, builds a fire, cleans, cooks, and serves the fish.  My favorite restaurant of all time.

So many wonderful ways to cook fresh fish.  Beer batter walleye, honey-garlic walleye, traditional walleye with all the trimmings.  A different dish every day, followed by desert.  If you have not yet experienced this wilderness feast, you are in for a treat!

Nothing tastes better than fresh walleye.  It’s a delicacy elsewhere in the world, but nowhere near as good as walleye up here.  These are fresh from of a cold clean body of water—live until cooked and eaten.  Up here, they grow big and thick, with luscious and flaky meat.  I have room for just one.

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Hunting Pike

We spend our days on these pristine waters in open boats, making long casts with stout rods, our heavy lures retrieved at speed.  Attacks by northern pike are sudden, savage, and frequent, with water churning at line’s end.  To our surprise, walleye also strike our lures with tenacity and vigor.

But on day #3, the air grows unusually warm for this far north, and the bite slows.  I put away my heavy tackle and slip out a fly rod.  We glide into a calm bay, looking for big ones sunning and digesting an afternoon’s feed.  We are hunting them.

My guide spots a monster pike 50 feet away and I cast a 10-inch fly at it.  It refuses my offering and paddles away ever so slowly.  “We’ll find it again!” says my companion.

And we do.  I tie on a bigger fly (it looks more like a mop), cast it past this fish, and draw it into the kill zone, then twitch it to entice the lounging lunker.  As I watch, the big fish gradually turns toward my bait and lazily moves on it.  With great care, enormous jaws close over my lure.  I set the hook hard, feel weight and life at the end of my line, and see the huge pike pull against me.  Fish on!

A shiver runs down my shoulder.  Then the big pike charges our boat and I strip line fast, spilling coils around my feet, trying to keep a load on my rod because any slack and that barbless hook can easily fall from a bony jaw.  The pike continues to charge and swims directly under the boat.  Plunging fly rod into water, I work around the bow.  The pike continues to run in the same direction, taking line at will—line that burns through my grip until it spools off the floor, pulls taught, and tugs at the drag on my primitive reel.  The reel gives me an advantage.

Powerful shakes and malicious tugs, then the pike’s 25 pounds rolls in my leader, but hook holds fast and this northern pike finally goes to bottom, still as rock.  The water is clear in this shallow bay and I see my fish and keep pressure on.

Eventually the big pike concedes, and perhaps more out of curiosity than fatigue comes to our gunnels.  My guide and I both gasp. There’s always something awesome about a thick, powerful fish measuring in the mid 40’s.

We net the pike, snap a quick photo, and the trophy goes right back in the lake to swim away and fight again. I can barely express the draining satisfaction of hunting, battling, and landing a pike this big.  Maybe I’ll catch him again next year.  Then primal shouts, a congratulatory handshake, and I relive the fight in my mind all the many miles back to our lodge.

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Revival

After a hard day fishing, this old man needs food and rest.  Management proves courteous and professional and refuses to let me suffer.  We sit around our beautiful log cabin in blissful comfort, sipping beer and telling stories with suitable embellishments while eating steak, ribs, and other satisfying fare.

Up here, summer nights don’t get entirely dark.  By eight o’clock in the afternoon, we’re playing at the pool table, shuffleboard table, and poker table.  Then we shower under deliciously hot water and sleep soundly under warm quilts, on firm and expansive beds.

On the appointed day, we board our bush plane at the lodge’s private landing strip and fly home for dinner.  If you live in Chicago, a true wilderness isn’t really that far away..

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THE PLACE:

North Star Executive Outpost

http://northstarresort.ca/

Check for a cancellation if you want to book this year.

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VERIFY MY NUMBERS:

Fish frequency calculation:

3 fishermen, 4 days on the water

less 1.5 hours/day for shore lunch

= 30 hours fishing and running around in the boat.

30 hrs / 647 fish = avg 2.8 min per fish caught

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Photography by John Jonelis

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Next installment coming soon

Go back to – ROUGHING IT

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Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money..Copyright © 2018 John Jonelis – All Rights Reserved
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Filed under angel, angel capital, angel investor, Canada, Cleantech, Entrepreneur, Entrepreneurship, Entrepreneurship and Politics, Fishing, fly fishing, Jim Kren, loop lonagan, new companies, pike fishing, Startup, startup company, vc, Venture

TOP OF THE LIST

by Mark T Wayne

“Admirable!  Superlative!  Top of the list!  Gentlemen, you are indeed fortunate that I invited you here!”  I study the greedy faces of my two compatriots—the estimable Donatas Ludditis (good old Don) as well as the execrable Loop Lonagan and his stinking bull terrier, Clamps.  (Claims it’s a therapy dog.)  We are here as judges, along with a crowd of luminaries from Chicago’s startup community for the finals of the tenth annual POWER PITCH competition.  Today we will hear pitches from a host of exciting new companies.  Yes sir!  The enthusiasm is riveting.

Clamps

Don bows politely and speaks like a gentleman.  “Am glad I come,” he says in his charming Lithuanian accent.

Lonagan leers at me.  “Lemme at ‘em,” he says in his gutter lingo.

The IN2 Accelerator

I scan the ranks of judges and note representatives of the Business Plan Police lurking in the wings.  We want no trouble from them. But I must familiarize my guests with the program.  “This, gentlemen, is IN2—potentially the greatest startup accelerator of its kind in the world, with facilities available at a mere handful of elite universities”  I sweep my arm in an arc to indicate our magnificent surroundings. “Offices here and at the huge 1871 incubator.” 

Clamps releases one resounding bark—basso profundo—and lolls a broad tongue out over enormous teeth.  From a suitcoat pocket, Lonagan produces a hunk of meat.  He tosses it into the gaping maw—just as the teeth snap closed in hungry abandon.  This animal and its uncouth owner make up a last-minute replacement, foisted upon me by the editor.

On stage, Dr. Carl Heine announces the first competitor.  With a cane, I prod my guests and lower my voice to a whisper. “Don’t make me ashamed, you two derelicts.”  Don straightens his back and faces front with all due alacrity and respect.  Lonagan slouches like the slob he is.  The round begins:

IN2 Maker Space

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Flameless

Fifty percent of all residential fires are cooking related. This company uses sound waves—yes, sound waves—to extinguish fires automatically.  It is safe. It is neat.  It does not belch messy fluid or poisonous gas, as do other fire suppression methods.  We watch a video showing the system in action and the audience bustles with delight.   Amazing!

“Five minutes!”  The shout stops the speaker in mid-sentence.  That is the kind of strict discipline that warms my heart.  But even under the gun of limited time, their business plan is complete with financial projections, marketing plan, intellectual property, and go-to-market strategy.  Well coached, sir!  Very well coached!

Moises Goldman – Judge

Lonagan elbows Don and whispers:  “Deeze guys look kinda young, doncha think?”  The response to his juvenile utterance gets cut short when the next company is introduced:

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The Oil Magnet

This is a new technology for cleaning oil slicks.  They disburse magnetic nanoparticles into the spill, and then recover black gold with a magnetic boom.  A demonstration unit elicits gasps from the crowd—the team pulls off this whiz-bang presentation with thoroughness and aplomb.  I believe I’m sensing a rhythm to this event.

Demo

The foul Lonagan leans over to me and mutters with his rank breath and wet voice: “How old d’ya s’pose dem guys is?”

“Shush! You, sir, are making a mistake. Mark your judging sheet.” I thump the document with a finger. “The next company is already speaking.” I cannot abide ludicrous interruptions during business hours.

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Series

Ninety six billion dollars of crops are lost annually due to pests, standing water, and soil degradation.  This company uses drones and GPS to scan farm fields automatically, in both the visible and infrared spectrums.  They scrutinize images against a large computer database and detect damage down to the individual plant.  And they do it cheaply.  Their mentor is DuPont.

Don nudges my arm and leans close to my ear, speaking with hushed tones in his broken English:  “In old country, I not see anything like this.  Is just high school.  Am impressed!”

Judge

Apparently overhearing, Lonagan lets out a shout of desperation:   “Hey, yer sayin’ dis’s a high school?—a high school?” After this inane utterance, he buries his face in both hands and moans as if in deep pain.  “And youse guys dragged me outa bed!  On Saturday!”  His outburst elicits a perplexed expression from the speaker and rumblings of outrage from the judges and crowd.  Clamps leaps against his master and howls.  I am astonished—astonished I say—that the man only just noticed the fact that this is indeed a high school.  True, it does not look like one, but nobody can be that obtuse.

Judge

I am unable to restrain myself from delivering a rebuke, and do not spare any volume:  “Sir, your puerile reaction is entirely inappropriate to the situation!”  I fix my stare until the man squirms.

Clamps wags his tail as I continue:

“This, sir, is THE high school—IMSA—the Illinois Math and Science Academy—the statewide school for the highly gifted!  You may find other schools riddled with dropouts and illiterate stooges that quickly jettison whatever knowledge they accidentally absorb, but these students WANT to lead society! At this fine institution, 99.8% of the graduates go to college!  Many of the businesses you see here come to fruition and these students intern at actual startup companies around the city!” 

Mark T Wayne

As my gaze bores into his soul, the man appears badly stunned.  Dare I tell him that some of these teams are middle school students?  Those around us seem well satisfied with my lecture, but I cannot be certain that any real ideas penetrate Lonagan’s frontal lobe.  From under my shaggy brows, I pin my friend Don with a meaningful glance and tilt my head in the general direction of the foul perpetrator and his dog.

Don immediately comes to my rescue:  “Loop!  Is great place!  Not gangs here!  No drugs!  No fear!”

“Whatsa funna dat?”

Don keeps at him.  “Faculty 47% PhD!”

“Piled Higher ‘n’ Deeper.”

Clamps barks.

Dr. Heine spares us further histrionics by introducing the next pitch.

Judge

iCane

What grandpa is ever without his cane?  This company makes a smart cane with medical reminders, loud SOS alarm location tracking, geo fencing, pedometer, and Bluetooth.  It folds up and is easy to use.  My walking stick seems inadequate by comparison.  What an excellent idea!

Judges

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epilEXPERT

Fifty thousand people a year die from epileptic seizures. It’s a $27.8B market.  This company makes a device that detects the problem, alerts the caregiver’s phone, and keeps a trail of raw data.

Lonagan slurrs out a belligerent question:

“How y’gonna run a business ‘n’ finish yer education at da same time?”  The man has gone from judge to heckler and I find myself acutely embarrassed for him.  The team covered this point in its presentation.  Like most of these companies, it will license its technology—in my view, an elegant and fully reasonable solution.

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Rethink Numeracy

This is a new way to teach numbers to children with disabilities, and the team seems to have cracked the problem.  They’re already working with neuropsychology experts and marketing their methods through a reputable center for the care of children with Downs Syndrome.

Finals

Lonagan scratches his monstrous dog behind the ears and puts another question: “How y’gonna scale a thing like dat?” 

This slurred interrogatory barely precedes the flashing of a badge. “Business Plan Police.  Please come along quietly, sir.”  Lonagan immediately balls a fist and clouts the officer to the floor.

Clamps licks the stricken man’s face. The officer regains consciousness and blows his whistle.

From out of the crowd, three musclebound agents pile onto Lonagan and hustle him out of the room like a roll of carpet.  I catch a glimpse of his feet kicking and hear him spew a few choice and utterly foul invectives as he disappears out the door.  Clamps bounds after them, tail wagging vigorously.

The crowd hushes a moment, then shrugs off the incident and Don lets out a sigh.  “Is bad.  I wonder do we ever see Loop again.” 

I also feel somewhat perplexed about such a questionable privilege.  In any given year, the Business Plan Police arrest a number of startups—never to be seen again—but I have never known them to abduct a judge at a pitch competition.  I can now relax.  It makes me most grateful.

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Finals

Three high school teams will advance to the regionals.  (Lower grades compete and are rewarded, but they cannot advance.)  Last year, IMSA won the top three slots at the regional competition.  Here are the results of today’s event:

Jim Gerry – IMSA

1st Place –  $1500 – award sponsor: Charles Whittaker

  • OIL MAGNET – Marisa Patel-O’Conner, Eden Gorevoy & Sol Hwangbo (Juniors at IMSA)
  • iCANE – Umika Arora (7th grade at St. Catherine Laboure School)

2nd Place – $1000 – award sponsor: Deliciousness

  • FLAMELESS – Sivam Bhatt & Nikhil Madugula (Seniors at IMSA)
  • RETHINK NUMERACY – Akshaya Raghavan (Junior at IMSA)

3rd Place – $500 – Award sponsor: After the Peanut

  • epilEXPERT – Monika Narain (8th grade at Mead Jr High) & Jayant Kumar (7th grade at Grainger Middle School)

Alternate

  • SERIES – Andre Wiedenmann & Tommy Neidlein

Britta McKenna – IMSA

Other Companies (alphabetical)

  • 21 C2 – Maryam Mufti, Erika Ezife
  • ACTIV8 – Anusha Trivedi
  • AMENITY – Sonia Edassery, Milica Barac
  • COMMUTE – Natalie Sanchez
  • BRIDGE TUTORING – Armando Pizano, David Gonzalez, Cain Yepez & Stefany Boyas
  • ENABLE EQUITY – Rachel Mason, Shikha

Adhikari

  • GOGO RIDERS – Rishi Modi
  • IDEAL SUGAR – Maya Wlodarczyk
  • IDROGENY TECHNOLOGY – Sricharan Sanakkayala
  • IMMERSION – Neil John, Samuel Anozie, Samantha Alexis Lehman
  • INSPIRULINA – Meghan Hendrix, Kanika Leang, Harsha Nalam
  • INSTA-VILLAGE – Catelyn Rounds & Julian Kroschke
  • INTELLIFIT – Steven Andreev
  • INTELLI-TEST – Akash Basavaraju
  • PHOCUS – Matthew Selvaraj, Louise Lima, Vaishnavi Vanamala, Eric Errampalli, Arthur Lu
  • POCKET PASS – Ajay Jayaraman
  • PROMETHEA – Ayush Bhalavat, Ian Son
  • SAVE OUR STARVING SOULS – Shreya Parepally, Sofie Heidrich
  • SCHOOLBOARD – Samuel Anozie, Aryan Walia, Mary Ashley Tenedor
  • SHINDIG – Nikita Elkin
  • TAKE HOME – Aliah Shaira De Guzman, Michelle Sia, Aryan Walia
  • TRANSSPEED – Atharva Gawde
  • THINKING CAP – Nishant Bhamidipati, Ryan Talusan, Micah Casey-Fusco
  • VIRTUPEACE – Michael McKelvie, Max Knutson
  • UNITED 5 AEROSPACE – Levi Raskin, Duncan Osmund, Wyatt Funkhouser, Ethan Tse

Dr. Carl Heine – IMSA

IMSA IN2 Contact Info

Address – 1500 Sullivan Rd. Aurora, IL 60506

Website – https://www.imsa.edu/

Dr. Carl Heine – heine@imsa.edu

Britta McKenna – bmckenna@imsa.edu

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Photography – John Jonelis

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Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money..Copyright © 2018 John Jonelis – All Rights Reserved
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CEOs THAT SELL

Why Startup CEOs Still Have to Make Sales Calls

by Howard Tullman

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It’s not your strength, or maybe not even what you enjoy doing. But being there to close the deal isn’t something you can simply hand off to the sales team.

At what point can a CEO turn sales over to professional salespeople?  Before that can happen, the company has to achieve two foundational milestones:

  • You need to know exactly what you’re selling—by doing it over and over again (and not as a one-off).
  • You need to know for certain that others can sell it consistently.

That only comes with the maturity of your product/service.  Until it reaches that point, stay in the field and keep selling.  Your product is still being developed on the fly and continually redesigned/reconfigured to better suit the real requirements and demands of customers.  The fact is, ultimately only you can make the critical design and development decisions and you’ll do a much better job of that if you are hearing it directly from the end users and not from a bunch of whiny salespeople.

I’m seeing more and more startup CEOs who discover way too soon that they don’t like the wear and tear, the travel, and the rejection that are all crucial parts of selling a new product or service.  So they retreat, thinking they can run their businesses while they’re sitting on their butts behind a desk back in the office. That’s not how this game works; that behavior is a formula for failure. You may not be an extrovert.  You may not even know the technology that underlies your business as well as half the other people in the company.  You are, however, the boss and today that fact alone means a lot, at least to the people who make the final purchasing decisions.

Remember—buyers are typically older than you, they grew up in strictly hierarchical systems where titles count, and they need to be made to feel important and respected if they’re gonna sign off on your deal. No offense to any of the members of your team, but customers don’t want to deal with the monkey—they need to see the organ grinder. That’s you. And they want you for all the obvious reasons:

  • People don’t really care how much you know until they know how much you care. Show up. It’s important.
  • Startup staffs are notoriously scattered and hurried—lacking focus and attention to detail. Customers want to know that you personally are connected, paying attention and directly engaged with their business, their concerns, and their problems.
  • Clients want to hear it from the horse’s mouth. Not second hand. They want commitments and assurances from you. Everybody knows that the sales guys will say anything and promise them the world.  They need assurance that you will stand behind your product or service and make good on your promises. The buck always stops with you.

Product Maturity

Once your product/service reaches those critical milestones, it’s time to kick yourself upstairs and focus on other things. I encourage CEOs who find they spend too much effort selling to optimize their time.  I suggest that they find competent sales managers and others who can tee up just the right meetings for them—not opening meetings which are a dime a dozen, but closing meetings where the deals get done.

Finding sales meat-eaters to fill managerial roles isn’t easy; they are the hardest hires for any startup, but it’s absolutely critical to have them onboard if you’re going to build a viable business.

When your startup is hiring talent, you need to avoid certain categories of salespeople. For example, stay away from what I call empire builders.  There’s a whole generation or two of sales management types whose experience comes only from large organizations.  I have found fairly consistently that they are the wrongest guys possible for a startup because they grew up in a system where they measured their value and their success by the sheer number of people they managed rather than the results that those folks delivered. Nothing kills a young business faster than bloat and bureaucracy and having too many sales people sitting on their hands and not selling is the worst kind of poison. So be careful what you wish for and who you hire for this critical job.

There’s no more challenging job than being the CEO. You are responsible for the health of each part of the organization and the trajectory of the entire venture.  Stay in the sales loop until your product/service matures.  Then focus on closing deals.  Customers need you to be there—to say what you’ll do, and do what you say.

 

 Howard Tullman is the CEO of Chicago-based 1871, where 500 digital startups are building their businesses every day. He is also the general managing partner of G2T3V and Chicago High Tech Investors, both early-stage venture funds; a member of Mayor Rahm Emanuel’s ChicagoNEXT Innovation Council and Governor Bruce Rauner’s Innovate Illinois Advisory Council. He is an adviser to many technology businesses and an adjunct professor at the Kellogg Graduate School of Management.

@tullman

This article is an excerpt of one that appeared recently in Inc.

Image Credits – Getty Images, MS Office, Howard Tullman

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money..Copyright © 2018 John Jonelis – All Rights Reserved
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