In this best of The ROI Podcast episode, we talk bullies.Were bullies just a high school phase? Not according to the latest research. In Episode 2, the main topic is how to deal with a bully in the workplace. Kelley School of Business professor Charlotte Westerhaus-Renfrow discusses the best way to handle a bully at work. She provides tips you can apply right away to minimize the stress a bully may cause you.
The ROI Podcast provides professionals from all industries with actionable insight from world-renowned faculty members at Indiana University's Kelley School of Business. Learn not only from award-winning faculty but business experts who are disrupting their respective industries. The ROI Podcast equips you and your organization with the knowledge to keep a competitive edge over the competition.
Episodes
Thursday Jun 21, 2018
Thursday Jun 21, 2018
In Episode 51 of the ROI Podcast, presented by the Indiana University Kelley School of Business, Indiana Governor Eric Holcomb sat down with Associate Dean Phil Powell to discuss tech growth and jobs in the state.
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
Friday Jun 08, 2018
Friday Jun 08, 2018
How many times have you set a timeline to get a task completed but fell short? Do you feel overwhelmed and distracted? In this episode of The ROI Podcast, Sunny Lu, CEO of Techserv, reveals three hacks that help her stay mind stay sharp every day.
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
----
Show Notes:
Sunny: What are you doing to maximize those minutes to achieve your goals and do you have a really clear plan.
(The ROI Podcast)
Shane: Happy… Whatever day it is that you are listening to this podcast! It is June in downtown Indianapolis and it doesn’t get much better than this. The sun is shining on us here at the IUPUI Campus and I’m thrilled to bring you this episode of The ROI Podcast. I’m riding solo today on this one, but we’re going to have a great time because we have a newly appointed CEO in this episode of The ROI Podcast! So I’m really pumped about that. But I want to start this podcast episode with a question for you: How many times have you set a goal, maybe it was something as simple as a New Year’s Resolution but found you never really hit that goal, or you lost sight of it? Well if you want to elevate your career, stick to goals you set, and accomplish more, then this episode is for you!
(Intro to podcast music)
Sunny: I would sum up my career by two key takeaways. It was the understanding of how to take a trial by fire, and make it an opportunity. Then secondly, comprehensive support from individuals who saw the potential in me, before I even realized I had the self-confidence to take the lead.
Shane: You just heard from Sunny Lu, CEO of Techserv, a solutions management firm specializing in program design, data management, and training for healthcare, corrections and education sectors… And Sunny has found time management to absolutely critical with what she does, and says it’s truly a skill everyone should develop – because it’s key to accomplishing your daily, weekly and quarterly goals…
Sunny: It is comprehensively about planning and scheduling your time. So I take one day a week, it doesn’t matter if that day is six hours, twelve hours or eighteen hours, but one day where I do all of my core documentation. When I mean core documentation I mean, “Does the company not already have a written plan, or some reference to written verbiage, that another team member can refer to get the work done. If that doesn’t exist, whether it’s a strategic plan, a project charter, an overall “This is my compelling pitch to a new customer,” if they don’t have that then they can’t really define the action items and next steps in order to move that particular piece forward. So I take a day. And sometimes over the past 45 days, that day has been close to 18 hours. Some days that day is very quick and there are the things I have to do and then move it forward. The rest of the days are all strategic meetings with the C-Suites that are in my core-customer group.
Shane: As some of you can probably imagine – and even relate to – you can’t just schedule a ton of different items if you don’t have the actual energy to perform the tasks, or enough energy to perform them at a high level… So, how do you optimize your energy on top of a really well-managed schedule? For ultra-successful entrepreneur Richard Branson, he’s been quoted as saying he can definitely achieve twice as much by keeping fit… And Sunny says she has found that to be the case for her.
Sunny: Train for a triathlon. So I say that literally and I say that tongue in cheek because I found my overall energy depleted over and over again when I was working for a corporation because I would have to drive these deadlines, I would have to make sure there was these particular pieces in place, and there were always these external consuming factors. When I was stressed and I didn’t have that overall time management, you just develop bad habits. So I looked at this and said, “If I’m going to be successful at running this business, it’s an endurance run. It’s a literal and figurative endurance run. I’m not just doing a sprint these 45 days, I’m going to do this for the duration until my exit strategy comes into being. I looked at it and said I needed to be healthier as a comprehensive package, in order to make sure I have the endurance and strength to get through it. I had run triathlons many, many years ago but like most busy and career professionals, I dropped off on the whole continues training and working out and being healthy, etc, in despite of all the key recommendations. I looked at it and at first it became this, “How do I do a conservation of energy plan for myself,” and make sure I’m at peak performance. And I was looking at doing some research and doing some education and seeing how I could become completely at peak. It’s the 90-day triathlon training plan. It’s really fascinating because when you look at that plan it’s really go to bed at a consistent, reoccurring hour every day, if you need to get stuff done then get up earlier. Eat well. Workout. And it’s not a run 10 miles everyday type of plan. It’s a build-up to go through endurance. I’m three weeks into that buildup and am I going to win that triathlon? No. But I’m definitely going to be in it to finish, and that’s the same endurance strategy for my business.
Shane: So it’s about physically being in shape, which in return gives you greater energy to perform the tasks at hand… And if there’s one thing that consistently exercising and training for a triathlon can teach us, it’s life and business lessons. You’ve all heard the saying, “Life’s a marathon, not a sprint.” And that holds true… So that’s our first takeaway: Keep your body in shape, and your mind will operate more efficiently. Now, we’re going to move into something that a lot of people deal with: Distraction: And Sunny has some great insights on how to keep focused to accomplish what needs to get done.
Sunny: Number one: Do not respond to emails all the time. Take a two-hour block, and it doesn’t matter if you need three two hour blocks in a day, but when you’re going to sit down to respond to emails, take a two-hour block when you are not distracted to respond to those emails. If you respond to emails all the time, all you are trying to do is clear your inbox and that is not the point of an email. An email is a documental reference point of communication and it’s important that it was written in this methodology for a reason. So you have to be just as concise, considerate and thorough so that you are not giving email action items back to your partners, customers, and suppliers. You are actually giving a thoughtful response via email – this is the strategy, the vision, the operations and overall plan. So that’s directional. If it’s too lengthy for an email, put it into a referenceable document, but that tactical two hours a day, whether you have to do it at 4:30 in the morning or 10 pm at night, do it where you are focused on the response.
Shane: Don’t check email all the time! Set specific times in your schedule to take care of that. Ok, number 2:
Sunny: The second thing I recommend tactically for my team is be absolutely protective of your time. Don’t take a call just to take a call. Don’t take a vendor request just to take a vendor request. Plan out your days thoroughly and thoughtfully. So I have program managers that run many projects and I say take the time to either space out your projects by day, so that you are actively having the headspace to actually think Wednesday is “X” customer day. And during “X” customer day, I’m going to be very thoughtful in this particular project, not just moving action items everyplace, but actually very thoughtful on “what are the actual responses I need to provide, what is the communication I need to put forth, and how do I facilitate and convene. That’s important because if you don’t have that time management and the accounting for schedule facilitation for your collaborators, nobody else is going to do that. And that’s how we move our business so quickly forward.
Sunny: I often joke that executives are just master schedulers. Right? How do you get done everything you need to get done in the right format and in the right methodology and the right communication if you haven’t accounted for what time you will need the right headspace to approach, resolve, and potentially lead certain things.
(Closing Music)
Shane: So we’ve talked about be a master scheduler, not checking your emails every single second, which is ultimately a distraction and can throw you off the task that needs to get done, but Sunny’s last piece of insight that’s truly helped her throughout her journey to the C-Suite is one of my favorites.
Sunny: The last and final is if you take accountability, don’t make excuses to me on why you didn’t make your timeline, because you are the one that set the timeline. For many companies, that’s not feasible. We are designing the program, and therefore, we are designing the implementation timeline, getting the messaging back from the customers, to say, “Does this makes sense?” Are their conflicts because of other trainings, other initiatives, etc. So, if we cannot make a timeline, there has got to be a process, a root cause to it, there’s got to be a communication root cause to it, so as long as that’s appropriately communicated we don’t have issues.
(The ROI Podcast Music)
Shane: So there you have it! Your goals are much more attainable than you think – but it’s going to require discipline and focus – and both of those can be hard to keep in our information-crazed society… So remember what Sunny mentions – schedule your time, be precise, exercise because it’s going to help you think better and focus, don’t watch your email like a hawk… Set designated times to check and give the best response possible – and finally accountability! Follow these steps, practice them, and reap the rewards… That’s going to wrap up this episode of The ROI Podcast presented by the Kelley School of Business. We want to thank Sunny Lu of Techserv for visiting with us and sharing her insights. Don’t forget to subscribe and leave us a review on the podcast! And we’ll be here next week with another episode… Take care!
Friday May 25, 2018
Friday May 25, 2018
Why do nearly 50% of startups fail? Can growing a business too fast be a detriment? In this episode of The ROI Podcast, Brent Tilson, who's the founder of Tilson HR and a published Forbes author, discusses the common pitfalls of a growing organization while offering advice from his book Go Slow To Grow Fast.
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
----
Show Notes:
Shane: What is going on ROI Podcast listeners! We have got a great show for you today and the topic is about scalability: How do you scale the business, do it responsibly, and avoid the trap of sliding off the rails into the red... We have a Kelley School of Business alum, and most recently, author, Brent Tilson, who was one of the very few whose book has been published by Forbes... Let's get into this value-packed episode!
(The ROI Podcast Music)
Shane: Alright, alright, welcome back to the ROI Podcast presented by the Indiana University Kelley School of Business on the IUPUI Campus in downtown Indianapolis. I'm one of your hosts, Shane Simmons and the associate dean of academic programs, Phil Powell, is here with me. Phil, how are you?
Phil: Shane, I'm doing wonderful and I cannot wait to share with our listeners these insights from Brent Tilson. He has written a marvelous book with great insights that enables very profitable and efficient business.
Shane: Brent Tilson is the founder and CEO of Tilson HR in Greenwood, which is on the south side of Indianapolis.
Brent: I’m doing wonderful, another great day in Indiana!
Phil: Brent is what you could call a CEO to CEOs. His company, Tilson HR...
Brent: We’ve been in business now for 23 years
Phil: Has been helping businesses for more than 20 years focusing on business efficiency and performance improvement... And in his new book and in this interview – he's pulling back the curtain and reveals how business can overcome the pains of growth while avoiding the common pitfalls that have eliminated organizations...
Brent: That’s correct, Go Slow to Grow Fast, the title of my book sums it all up. At one point, my business was the highest-growing company in the country back in the 2000’s, followed up the next year even faster - I was living it. I was also working with businesses that were having the same success! 5:08 As I worked with them, what I realized was that all of them had these predictable growth cycles - I was trying to work with my fellow CEOs to help them anticipate and understand how to help them grow their business. There’s a traditional S-curve Life Cycle for businesses that many entrepreneurs and CEOs all recognize, and I was looking at that [thinking] how do I help companies not go to what I call “The Drama Zone."
Shane: Let's talk about the drama zone... What is that?
Phil: The drama zone is when the business may stop seeing, or even lose the growth they were once seeing. Think of dips in revenue or human capital.
Brent: Many companies spin out of control in the drama zone and end up going out of business or reverting back to prior business models, trying to salvage themselves and live.
Phil: Brent says one problem many CEOs struggle with is the fact they spend too much time working on tasks that could be delegated – which is costing the company real revenue... And can lead to the drama zone we just talked about.
Brent: Owners should be working on their business, not in it – that’s a very common saying in business today. It’s easy to say, hard to do, because just the day-in, day-out volume and speed of business makes it very difficult for leaders to truly step back and recognize what’s important and not – I call it “materiality”.
Brent: For CEOs and leaders, when it comes to working on your business, you have to look at something that’s in front of you and determine if it’s material to the impact of your business – if it is, you need to focus on it; if it’s immaterial on a day-in, day-out, someone else needs to be working in the business on those matters. They’re important, but are they material?
Phil: Now, let's go back to the S-Curve for a moment... In that S curve, you have ups and downs – as we've mentioned... At the bottom of that curve, you usually have an entrepreneur who has a few employees, and the executive is still doing a lot of the work... But when growth hits and the acceleration moves in full force – you have problems that will arise...
Brent: All of a sudden, they have success in the business and they’re growing – they quickly find out that their infrastructure isn’t designed to even handle the sales and record them in their accounting system. They don’t have the production and distribution because they quickly out-scaled what they could possibly do, so then they’re scrambling to be able to meet those needs. If they grow too fast, then they’re trying to hire people as fast as they can, so what ends up happening is they start cutting corners and paying people under the table or whatever it takes to keep the company alive. One day, they wake up, and they’ve hit this inflection point – an order doesn’t get made, an employee makes a mistake, the IRS knocks on the door - something happens where the company realizes they don’t have the infrastructure to support the sales, and they quickly start to spiral and try to figure out how to salvage themselves.
Shane: That's when you have a mess on your hands?
Phil: Exactly. That growth may seem like a great thing – but in reality, if there aren't processes in place to handle that growth – you can have real problems you have to fight through.
Brent: Statistically, 50% of startups go out of business in the first few years, and if you go and look at all the stats that exist, you’ll find that that’s very hard to get past the first five years. I would propose and suggest that the reason why a lot of companies fail is that they don’t have the scalability - they get into that problem, start to have success, and they don’t plan for the future.
Phil: So first and foremost, fast growth isn't always great for the business – and that's assuming you don't have the proper systems are in place. But what are those systems? What do they look like?
Shane: I'm assuming you have to have metrics?
Phil: Yes, metrics are necessary – but Brent says too many times organizations will rely on the financial statements – and view them as black and white – when in reality – there's often a hidden story...
Brent: The reality is the financial statements don’t tell the whole story, they just tell part of it, because if I were to take two identical financial statements and lay them side-by-side, one may have an amazing operation that can scale, succeed, and double in size, while the other one has never invested in their infrastructure. The other metrics for us to measure are those things that aren’t measured by financial statements - it could be employee turnover, which maybe indicates a moral problem, maybe it’s a loss of clients! So they’re adding a business on the top line, but they’re going just as fast out the back. It’s [about] measuring these things that are a non-financial statement that help businesses understand how effective they are at running their business. I propose that effectiveness is as important - or more important - to measure, than just bottom line Return On Investment and profitability.
Phil: Measuring things that aren't on the financial statement is critical... Culture, moral, these are things that can't be quantified on a piece of paper... But let's move to employees effectiveness... How do you measure that? Brent has a very simple way to look at it, which has helped companies hit all new levels. It's called Revenue Per Employee.
Brent: To me, Revenue Per Employee, measures the ultimate effectiveness of an organization because everything contributes at the end of her day into generating Revenue Per Employee. First, let’s think about a software company, one of the highest Revenue Per Employee industries - you can write the software, get it to a certain level, maintain it, sell it as a software where there are very low infrastructure costs other than the programming, and you can maximize very high levels of Revenue Per Employee. Thus, why technology firms trade at such high multiples, how they raise such high levels of value, because they maximize Revenue Per Employee, where a law firm, engineering firm, or professional services firm, at best, is 100-125,000. By industry, companies can measure themselves against and compare where they stand up to their competition - the Revenue Per Employee is such a critical measure because everything contributes to that. If I’m losing clients and my turnover of clients is bad, that’s going to drive revenue down per employee because I’m having to replace it just as fast as it’s going out the door. If I can make my employees more effective, they’re able to do more with less, and they’re just better performing, then that means they can take on more capacity, adding more Revenue Per Employee on the top line. If you unpack and look at all the variables that affect Revenue Per Employee, you start to find out where all the leaks are in the organization – you start to find out where those issues are, that normally wouldn’t surface, that impact Revenue Per Employee.
Phil: There's always an inflection point... And what do you do? Hire more people at a really fast pace?
Shane: But if you do that, there's so much time and costs into training, getting the team up to speed – having this mass hiring's in a short period of time can be risky, right?
Phil: Exactly – and that's when outsourcing can become your ally.
Brent: I think companies, as they look at their lifecycle and they’re making these strategies on how to run their business and to maximize driving zones, minimize drama zones, the key is to look at the organization and find what are the most important things that drive value. If you double in your size and you’re outsourcing, let’s say, IT, your IT provider then is able to meet your needs, because they have all the professional expertise when you need it, as you need it, to help you scale. The same thing with the Human Resources side, if you outsource the HR infrastructure, and you have professionals that meet all the needs and can anticipate and look around corners, then your drama zones can be greatly minimized. Every company will always have a little bit, you can’t be a perfectly 45-degree growth line - how do you maximize the driving zones, and if you take out the friction and do that through outsourcing, those non-critical, market differentiating things from your organization, then you can minimize and maximize.
Phil: At the end of the day, it's all about minimizing your chances of hitting those danger zones... and having the systems and processes in place to handle growth... We've just scratched the surface in the podcast interview... In Brent's book, Go Slow To Grow Fast, you'll hear a fable drawn from Brent's work with hundreds of businesses over the years – which Brent creates a case study that will walk you along this business journey...
Brent: I’m very excited to roll out my book, Go Slow To Grow Fast – it encapsulates and expands on the topics that we’ve talked about in this podcast. I would encourage the listener to pick up a copy, available on Amazon, and it will help the reader and take them through a fable based on my many years working with businesses. Those who have read alongside with me as I’ve written the book have said they can see themselves in these characters, so I think the reader will find themselves pulled into the book, able to start to understand and give themselves a path for the future, and what to anticipate as they step into a CEO role. It might be one of those tools that you have on your shelf that you pull out over the years and say, “These are the things we’re experiencing today, let’s talk about them and plan for the future because we’ve got to go slow to grow fast”.
(The ROI Podcast Music)
Shane: Go Slow To Grow Fast... Brent Tilson's book will be out on June 4th -- you can get your copy on Amazon... And that's going to be a wrap for this episode of The ROI Podcast. We'd like to thank Brent Tilson for sharing his lifelong business experiences with us and really pulling back the curtain on real issues companies face, and how to tackle those issues. Be sure to subscribe to the ROI Podcast and leave us a review. And we'll be right back here next week with another episode for you!
Monday May 21, 2018
Monday May 21, 2018
Healthcare costs continue to increase, but physicians are becoming more involved with the business side of healthcare. In this episode of The ROI Podcast, Associate Professor of Strategy and Entrepreneurship Todd Saxton discusses SoPe, Indiana's Chapter of the Society of Physician Entrepreneurs, and how its goal is to create more entrepreneurial physicians.
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
----
Show Notes:
Shane: "Doctors are going to have to start thinking about the broader business, which is something they haven't really been pushed to do before. If they want to continue to contribute to the organization and understand how they fit in, they need to understand how they're contributing to the economic vitality of the organization." Those are powerful words regarding the future of physicians in this country, spoken by our guest today – Todd Saxton – professor of strategy and entrepreneurship at the Kelley School of Business. And today – we're talking about an initiative that could impact everyone's healthcare in this country.
(The ROI Podcast Intro Music)
Shane: Welcome back! Here we are with another ROI Podcast coming at you from the Kelley School of Business on the downtown Indianapolis campus. I'm your host Shane Simmons and as usual, Phil Powell, who's the associate dean of academic programs at the Kelley School, is right beside me. Phil – how's it going?
Phil: (Response)
Shane: Today, many people's minds are going to be amazed – because we're talking about something that touches us all: healthcare.
Phil: Get this, in 2016, $3.3 Trillion was spent on healthcare expenses, according to Centers for Medicare & Medicaid Services. That's a massive number that continues to rise... And who is going to play a critical role in the future of healthcare in this country? Physicians. And our guest, professor Todd Saxton, says physicians are beginning to, and need to, engage more in the entrepreneurial world.
Todd: One of the things that I think is very interesting to me, now [that I've been] observing our roughly 200 folks up close and personal that have been through our program, is physicians are extremely entrepreneurial - I would put 75%+ of them in the top 10% percentile in terms of entrepreneurial thinking [on] how they approach their own clinical practice.
Todd: I see them engage in the entrepreneurial world in three different ways: One is the physician entrepreneur who wants to start their own thing - we've had several students who've started their own business in the course of attending their own program and are now doing great things as alums. There are the physicians who want to be involved in the venture community as angel investors and or advisers - we've actually had a group formed in conjunction with the program called Angel Bomb that is an angel investing group with Vision Tech, and again, some of the physicians aren't necessarily ready to leave their day job and start a new thing, but want to be active in the community and give back, and that's a tremendous benefit to innovators that are trying to access clinicians not just for their money, but the insight they have in life sciences and the ability to bring that to bear on the start-ups and help them move toward a successful trajectory is really powerful. The third category isn't necessarily interested in starting their own thing, investing, or advising, but are innovators within their own institutions. Innovating in healthcare is really tough and I think some of the lessons they learn, partly from their colleagues, partly from the faculty in the program, allow them to become more successful change agents within their own organizations and institutions.
Phil: Five years ago, here at the Kelley School, we launched one of the few physician-only MBA programs - we were told physicians wouldn't go back to school [because] they were too busy. But they're coming back, and we're enjoying them in the classroom right now. And generally speaking – these physicians tend to think differently than your traditional entrepreneur... But Todd and Dr. Paul Szotek have co-founded something called SoPe – Indiana's chapter of the society of physician entrepreneurs... He says it's leading a step in the direction of creating an ecosystem for physicians here in the Indianapolis region, can you talk about that?
Todd: SoPe's mission is to bring together pieces of the life science venture ecosystem to allow innovation to happen, whether that's entrepreneurship or innovation within hospital systems. It's not clinician-only, it can be other parts of that life science ecosystem, whether you're a care provider or a supporter of life science types or organization - it's a fairly inclusive organization with 50% [of the members being] physicians and there's a strong element of the physician entrepreneur that is trying to be served. I like to think of it in terms of degrees of separation: between any entrepreneur with an idea and success are probably five key people that they need to talk to and get feedback from, [which] will lead to customers and other things. For most clinicians, they are probably three to four degrees of separation, if not more, from those folks that really need to talk to [them] to be successful as an entrepreneur. What SoPE does, and what the Kelley school can enable, is to shorten those degrees of separation to one or two.
Phil: So Shane, when I was talking to Todd about physicians and their entrepreneurial journey, he brought up something about how physicians are trained in med school, and some of the major hurdles they face when they take that entrepreneurial leap.
Todd: In addition to the fact that they're all very bright and motivated, they think scientifically, that's how they've been trained to make diagnoses in most cases of complex scenarios, and take apart and diagnose what's going on - in their world, that's been with a patient who has some kind of problem. In the start-up world, what you're trying to do is frame some hypothesis about the marketplace, what the problem is, what the solution might look like, what pricing might look like, etc., and systematically navigating that uncertainty by framing hypotheses, testing those, and then move onto the next stage - physicians just naturally think that way.
Phil: We're going to pause here for just a second... And pay close attention to what Todd says next.
Todd: It's funny because sometimes, particularly in the tech transfer world and universities, you'll hear we need to train our technologists and researchers to think more like business people – 9:04 I would actually flip that and say we need to train our entrepreneurs to think more like scientists, to think about the problem, craft hypotheses, and systematically navigate through that, as opposed to engaging in entrepreneurship as a random journey.
Phil: But one challenge some physicians face, according to Todd, is that they typically are trained not to take risks... But once they can overcome that challenge – they can accomplish amazing feats.
Todd: There's no recipe for being a successful entrepreneur, and I would say one lesson is to get feedback early: the traditional approach to entrepreneurial education was we're going to get these students, they're going to write a business plan, and have a business plan conference. It was all contained within the walls of the university, no interaction with the marketplace. Ventures that start with a closed-door mentality 30:53 doesn't fly, you need input from the marketplace and you need to reach out to customers and other informed folks who can give you candid feedback. So step one, plan on a lot of iterations in the idea phase when you're coming up with the concept, interact with the marketplace, get feedback, and be comfortable with pivoting. Lesson two is you have to be passionate about the problem that you're solving: a lot of entrepreneurs are enamored with the idea of making a lot of money and inventing the next sliced bread but don't really have a committed to an idea or the problem it is that they're solving. Those entrepreneurs are very rarely successful, so you have to find a problem or know of one that you are passionate about and committed to solving. The third lesson I would say is to get education, whether that's formal or not - coming back to the batting average or hit-rate mentality, the more education you can have the different pieces of uncertainty, how to navigate that, and [being] more informed about the choices that you're making, the more likely it is that your venture will survive the very rough seas of launch and sailing to your destination.
(Closing Music)
Phil: Entrepreneurship can be a scary journey – that's the reality... But out of this risk, can breed massive reward... And with our healthcare moving forward – we need physicians steering the ship – both as clinicians treating their patients – and administrators with the vision of making our healthcare system better than it's ever been.
(Closing ROI Podcast Music)
Shane: Great job on that interview with Professor Todd Saxton... As we say here at the Kelley School: We're changing healthcare one physician at a time – and that's why the society of physician Entrepreneurs' chapter in Indiana is so important. If you'd like to learn more about SoPe, and receive more information about the inaugural event on June 21 – visit www.sopein.com and you can find out all the information there. And don't forget subscribe and leave a review to The ROI Podcast! We'll be back here again with you next week here on the ROI Podcast!
Monday May 07, 2018
Monday May 07, 2018
Create the culture, add a great service, and you have a recipe for success. In this episode of The ROI Podcast, listen to Counterpart's Chief Strategy Officer, Drew Linn, on how their culture and innovation has helped them become one of the most successful software development companies in Indianapolis.
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
----
Show Notes:
(The ROI Podcast Music)
Shane: Welcome in, everyone to another episode of The ROI Podcast presented by the Indiana University Kelley School of Business on the IUPUI campus in downtown Indianapolis. I’m your host, Shane Simmons. I’ve got the associate dean of academic programs for the Kelley School, Phil Powell, with me once again – and today, we’re going to jump into company culture – and the critical role it plays to innovation.
Phil: You're right and here is the irony. In a technology company, we think the fundamental driver of value is things like artificial intelligence, the coding, the electronic circuity, but it's not. In the end, it's people, just like in any other organization. And what motivated people is the culture that they work in.
Shane: Today – you’re going here from Drew Linn, chief strategy officer at Counterpart – a custom software development firm based in Indianapolis.
Phil: And what Counterpart does is they help organizations around the state to innovate… That’s their job – and software is that vehicle.
Drew: There are a couple different things: companies need to innovate, and software can help make that happen very quickly.
Phil: But as the Chief Strategy Officer at Counterpart, Drew says the company has been so successful throughout its existence because of the culture it has created. It’s a tech company – and as we know – tech companies are really disrupting the traditional work environment – and that works for Counterpart which helps them deliver a better product. And that starts with the right team.
Drew: The first is we've got to have the right team: personalities aren't all the same, but we all rally around a common goal - some of us are closer than others, but we all have a mutual respect for each other. So the members of the team are a challenge, and what's interesting is we have several that are founder-level age, [who are] a great resource and they all spend time mentoring, and then we have this new, younger, under-30 group that looks at things differently but mesh well.
Phil: The right people are in place. There’s a mix of age groups which bring experience and new ways of looking at projects, issues, and solutions. And one of the ways they’re able to keep up that culture that works for them is through flexible work hours – which Drew says only enhances the quality of work they produce.
Drew: You've got to make sure that the dynamics, the chemistry that's in our environment is solid. We also not only check the time but other than client meetings, you can work from anywhere you want. We're about to move into a brand new office that we hope will create that environment that would encourage the collaboration and the time together, but if you want to work from home, because that's what works for you -- in fact, we have a couple that comes in once every week. Dealing with that dynamic, it's hard to build relationships when you aren't together. What we're trying to do is allow each individual to, Yes, whether it's how much they're going to deliver to this client every week, it gets down to when you're hired, you're just given a budget, and you go buy whatever technology you want. Then every two years you get another allotment to go upgrade it or replace it, and then it's yours. It's how you want to do it - we try to embrace the personality because not everybody's the same. I'm typically in the office around 8 until late, and we've got some that come in at 11, and then they work until 7, 8, or 9.
Phil: Shane, we’re starting to see this type of environment more and more – the freedom to work from home or on your own schedule, but making the employees hold themselves accountable to completing their projects. And Drew says that’s a big selling point and why people want to work for them.
Drew: One of the biggest things has been just embracing the talents, strengths, and expertise of the members on your team, and not trying to control them - you hired that person, you brought them in to do a responsibility on your team, let him/her do it. The culture is really what I'm talking about, you've got a team that's willing to do what you need them to do, and you want them to do it well, otherwise, with us being so close to our team and community, it's going to go around town and that's not going to be helpful with your business model.
Phil: We’ve flexible work hours, letting the employees manage themselves and their areas, and bringing in a mix of people from different age groups and backgrounds – but Drew says just as important as all those factors are transparency. And we’ve seen this with other companies we’ve interviewed like One Click Ventures in Greenwood – and what Drew said about transparency was really interesting to hear.
Drew: Like I said earlier, transparency on all levels [is important], the company does well if everybody knows how it's doing. You can be running a marathon, but if you don't realize you're going to end halfway through because you're out of energy, you're not going to survive. What we've done is not only on the financial transparency from the salary-standpoint, where everybody can have access to know what everybody's making, it's also on the company performance. Not only do we do fully transparency P&L balance sheet performance sessions every week, over-arching all of this, we also have an employee profit-sharing program. Everybody benefits this quarter because we invested [and] brought on a couple new people - we also chose to invest in one particular client project that won't have profit-sharing. Now second and third quarter, we're primed for significant profit-sharing, so everybody's aware of what's going on and where the money's being spent, it just brings you a sense of a common goal. We understand what sacrifices are going to happen - some get involved in all of it, some don't, I think that's been a real motivator to keep us all aligned. And it's not a money thing, it's also the impact thing.
Phil: Impact – remember when we discussed social impact investing in last week’s episode? We’re seeing this reoccurring theme. More companies are considering the impact their making on the community, in the case for Counterpart, helping other companies innovate and grow, while having a positive impact on their employees and being completely fair and transparent with them. And Drew says their main goal is community impact:
(Closing Music)
Drew: I know that sounds cliché, but you know, we're in this community together - we can do great things, but if the community around us isn't thriving and surviving, then we're not going to thrive very long.
(ROI Podcast Music)
Shane: Close out the podcast
Thursday May 03, 2018
Thursday May 03, 2018
What if you could increase profits and help the community and environment all at the same time? Social and environmental strategy isn't just charity, they can produce real profits for organizations. In this episode of The ROI Podcast, Jay Geshay reveals how to skyrocket profits through social impact investing.
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
----
Show Notes:
Shane: We are in the midst of a global shift – and have been for the past few years. Millennials and Gen Z consumers care more about where their products come from and how they are produced – with an emphasis on global sustainability… More and more investors are putting their capital where it aligns with their social objectives – and this is changing the game as we speak… Let’s get to the podcast!
(ROI Podcast Music)
Shane: Hey everyone! Shane Simmons here and welcome into another episode of The ROI Podcast presented by the Indiana University Kelley School of Business. We are recording this from the IUPUI campus in downtown Indianapolis on a beautiful spring day. I’ve got the associate dean of academic programs, Phil Powell, here beside me once again. Phil, how are you?
Phil: (Response)
Shane: Let’s talk about social impact investing. Phil, I feel like when this topic was discussed previously, it wasn’t as attractive as it is today…
Phil: Some would say the social impact is simply charity in disguise and it’s going to cost the stockholders value and try and broaden the scope of a for-profit organization… But according to Jay Geshay of United Way, an expert in social impact investing, companies who are investing in socially positive practices have reaped a multitude of benefits.
Jay: In a traditional view of capitalism, you could definitely say that's the case - when you take your eye off the ball, when you get off your hedgehog idea, you consider that would dilute revenue and profitability. I think what you're seeing in missional companies - companies that are created to solve problems that are social in mind, whether it's around education or healthcare - when a company is missional, the social impact is embedded in it. What research is finding is companies that are doing this social good retain their employees more, are actually able to maintain or improve profits, and if you look at companies that are over 100 years old and you do a study of those, you'll see that a successful company are those that bring in the community and help as part of them, solving their issues, and not just using them for profits.
Phil: Now, some people may have some preconceived notions in their head of what social impact investing is – and may get it mistaken for charity… Jay breaks down this misconception.
Jay: If you look at a charity, it's basically high social impact, but -100% in ROI. Charities outstand ably, philanthropy plays a huge role in our society. If you look at social impact, it's really changing measurable outcomes in our community for the better. But when you look at social impact investing, yes, it's changing the social impact outcomes, but it's also returning a percentage on the financial side. If you look at many reports and research that has come out, they're showing that social impact funds, like Colorado Impact Fund, for example, are actually achieving market rates of return.
Phil: So what has happened over the past two decades. Why are we seeing this shift to social impact investing?
Jay: I think the traditional view twenty years ago is if I want to make money, I do things like venture capital and private equity, but if I want to do good, I give to United Way - those two do not cross. But we learn through experience, by seeing success in those that are trend-setters and are on that edge of learning. We've learned that you can do both, and that social impact investing can return a market rate of return.
Shane: But society is also changing… Values have shifted, especially with generations like millennials and gen z…
Phil: That’s true… And there are companies out there who are making social responsibility the backbone of everything they do. Rather than looking at profits, they’re looking at the impact on people and their community. And Jay says talks about some of those organizations he’s seen.
Jay: Eli Lilly, although they would never say they were a social impact company, I think by the way they operate and work within the community with United Way, we worked strategically with them on early childhood and was able to advance that in our state. I think about all the good that they do in our community and what their stock does as well through Lilly Endowment. But if I were to look at some companies that aren't as well-known, I would probably look to Endova, they're out of Chicago and they're a start-up company funded by another social impact fund called the Impact Engine. They do education for prisoners, on a tablet, and their goal is to help recidivism be reduced so that when they exit out of prison, they can do that. Another [idea] that I find very interesting is an app that is on your phone for food stamps, called EBT Fresh
Phil: So if you’re a young manager out there – and you’re wanting to make sure your company’s social and environmental values are aligning with this notion of social responsibility – you’re probably asking, “What can I do? How can I play a part?” Jay answers that here:
Jay: I would caution a young manager to try to move an organization towards a social Enterprise status. Because the social enterprise, the heart of it, really needs to come from the top and come from the founders or the owners of the organization. I would encourage a young manager to think more in terms of corporate social responsibility. Because I think you can do corporate responsibility and combat it more from retaining employees, the brand lift of an organization. And I think that organizations that aren't missional focused on social impact can still look at CSR… And they can say, “Yes. It is helpful if our employees can do volunteer work in the community. It is helpful if we can run a United Way Campaign, it is helpful if we do these things well in the community because the value back to the company is measured by employee engagement and satisfaction and brand lift. Rather than come at it from a social impact side, I’d probably come at it from a CSR side, unless you can convince the owners otherwise, but typically I think it would be hard to shift the missional focus of an organization.
Phil: You know, Shane, like all great ideas, the application of them evolves over time. What we are seeing now is something fundamental. A convergence between profit, and a sense of social mission or social impact. In the past, in many ways, our business models and our charity models made those mutually exclusive, as you've said. But innovation and newness of thought and change in social values now make that one in the same. And the good news is, the more those converge, the more good we have for everyone.
(ROI Podcast Music)
Shane: (Closing Remarks)
Monday Apr 30, 2018
Monday Apr 30, 2018
The job interview can be terrifying. It's what prevents many people from searching for a new job, but in this episode of The ROI Podcast, Josh Killey, Director of Career Services, breaks down the dos and don't of the job interview process.
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
----
Show Notes:
(Dramatic Introduction Music)
It can be terrifying. It keeps people up at night, causes shortness of breath, sweaty palms and prevents people from dislodging themselves from their cushiony comfort zone. We’re talking about the fear that unravels even the coolest of minds – it’s called: The job interview. And today, we’re here to tell you what NOT to do, and a great follow-up tip. Let’s do this!
(ROI Podcast Music)
Shane: Have no fear, l, dies and gentlemen. That dramatic intro, hopefully, didn’t bring back any chilling memories, but let’s face it – people don’t like job interviews. We’ve all been in that spot where you’re trying to go over all the questions in your head, telling yourself not to stumble over your words or say something you might regret. But the fact of the matter is – we can nail that job interview when it arrives – and that’s what we’re going to be discussing today on The ROI Podcast. Of course, I’m your host, Shane Simmons. And today, we’re going to tell you why people fear job interviews, and how you can prepare yourself to overcome that fear! This is going to be a fun episode – and who knows, maybe you’re listening to this right now and you know you’ll be interviewing for a job here soon, so pay attention!
(Intro Music)
Josh: In some respects, you’re putting people on the spot, you’re making them tell things about themselves, some people aren’t comfortable with.
Shane: You just heard from Josh Killey, director of career services at the Kelley School of Business on the IUPUI campus here in downtown Indianapolis. Josh has helped hundreds of people ease their fear of interviews and he says it really breaks down to this:
Josh: I think the biggest issue we see with interviewees is the lack of preparation – not completely understanding themselves, the company, the position they’re applying [for]. There’s definitely some things that can help an interviewee if they’ve done the preparation and if they’ve thought through the process.
Shane: Tip number one: Preparation. Preparation is huge with anything we do… And Josh says you’ve got to know who you are, what your strengths are, and how you can really impact the organization. And if you don’t know enough about the organization, because you didn’t do your research, you’re not able to really put yourself into position and standout from all the other applicants. Now here’s an interesting thought: You have two types of applicants who Josh helps: students who have little work experience fresh out of school, and working professionals who’ve been out in the workforce, but are looking for something different, whether that be a new company or position… Josh says the two have some similarities but area also very different.
Josh: I think as far as similarities, there’s going to be a number of them – they’re still going to have to understand their own interests and skill sets to be able to convey that to a company. The experienced professional is going to have considerably more backgrounds, skills, and ability to demonstrate what they’ve done than an entry-level candidate would. This is what we focus a lot [on] when we talk to students, it’s about getting internships and getting that related experience so that you have direct examples of what it is that you’re trying to convey to an employer.
Shane: Tip number 2: Know yourself. Know the skills you have and own them. Whether your new to the job market, or a seasoned veteran, you have to know your skillset and convey that to the organization. And part of that is building out your resume in a way that shows tangible results. Josh explains.
Josh: A lot of times, what you’ll see with [resumes and even] experienced [ones] is they’ve got key results/accomplishments that are embedded in them - that’s a way of saying they’ve done these things at the particular position, but here are the three to five things that really impacted the organization. Being able to speak to those effectively, convey that to the company, and selling your abilities is going to be critical.
Shane: So for example, I helped generate the company an additional $200,000 in revenue through service sales in Quarter 1 of 2017 – or I help implement lean strategy that saved the organization $2 million in wasted manpower. Those are powerful. They stick. And that’s what leaves an impact. Next Tip: Research, research, research. Here are some ways to research the organization you’ve applied for.
Josh: As far as strategies, I think the most important thing is researching as much information as you can get [from] the company and the position beforehand. The job description itself will give you some of it, but [you should utilize] resources like the company website, of course, and another one is Glassdoor. Glassdoor.com is an excellent resource because people go on there and put things the company might not necessarily want you to know – the good, bad, and the ugly, if you will – about the organization, their culture, and even their interview process - a lot of information can be gleaned from Glassdoor.com. Of course, there’s a variety of different resources, like LinkedIn and other things you can do to go through to prepare and understand the organization and position as much as you can. Utilizing those resources to help prepare yourself is key.
Shane: And the final tip – follow up after the interview. Josh says handwritten letters can be very powerful because let’s face it, most people are do everything digitally now. So if you can get a handwritten letter to the right person, this can be very powerful in your follow up. Just thank them for their time, and if there’s anything you wish you would have mentioned during the interview that you didn’t, that’s a great time for that as well.
(ROI Music)
Shane: Closing Comments
Wednesday Apr 18, 2018
Wednesday Apr 18, 2018
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
Thursday Apr 12, 2018
Thursday Apr 12, 2018
Manufacturing in the United States is thriving. Outputs are high, the workforce is in demand, and students who are considering a career in manufacturing have high hopes. In this episode of The ROI Podcast, Gregg Sherrill, executive chairman of Tenneco, talks about the evolution of manufacturing and the role it has played in the United States.
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
----
Show Notes:
(ROI Podcast Music)
(Manufacturing sounds)
Shane: Welcome back! Phil, you think the sound effects at the beginning of the show gave away clues about what we’ll be discussing today?
Phil: You know, Shane, here in Indiana we are in the manufacturing heartland of the United States. We are the most manufacturing-intensive state in the country.
Shane: Who better to discuss the state of manufacturing than the special guest we have on today’s show – we’re talking with Gregg Sherrill, executive chairman of Tenneco, a fortune 500 company manufacturing company. Phil – you know Gregg very well – give us some background on this Kelley Evening MBA Alum.
Phil: Today, we’re coming full circle for Gregg, who’s seen several shifts in manufacturing – most notably in the technological advances… So I asked Gregg about his impression of what manufacturing was when he first entered the industry, versus where it is today…
Gregg: When I look back now, in particular, because I can visualize the plant floor at Ford Motor Company 40 years ago, it bears less resemblance to the plant floor today. 2:39 The plant floor today looks more like an operating room, and that has been this enormous technology influx and to how we manufacture, not only how we engineer things as well, it all comes together on the manufacturing floor. It's been exciting and challenging for me, I’ve always said about [the] automotive [industry that] when it gets in your blood, it’s in your blood. It went through a lot of years getting beat up around this country, but it was never beaten up around the world!
Shane: I want to pause there for just a second, Phil, because I was just reading an article and the manufacturing industry led job gains for the month of March here in 2018 – and those numbers seem to continue trending upward, according to the Bureau of Labor Statistics.
Phil: And just a few years ago during the economic crisis of 2008 and 2009 – many people were writing off manufacturing – thinking it had its day in the sun… But here in Indiana, manufacturing is thriving, as it is all around the country and the world. Gregg weighs in here.
Gregg: I look at a lot of things with a historical perspective – unfortunately, I’m old enough to be a big part of 40 years of history now, so it’s not just historical, it’s one that I’ve lived through! To a great extent, when I really step back and can look at it, manufacturing never went away – we were talking about it earlier, the actual manufacturing output as a percentage of GDP has been constant for 50 years. It is true that the output comes with a much different and reduced total employment level because of productivity and the technology, but the overall output has always been there.
Phil: The bottom line: Times are changing. Technology is changing. This shifts the landscape of manufacturing, but it reemphasizes the importance of high-skilled labor. We’re seeing more and more requirements of manufacturing employees – and that’s where the United States has a great advantage globally. We produce high-skilled talent and labor. And our innovation is what drives our success, according to Gregg.
Gregg: I still think innovation is the vast majority of that, [and] the business climate now is helping.
Gregg: We are always going to need things, you can’t digitize everything, such as the chair you’re sitting in, the table you’re leaning on, and the car you’re driving – we will need manufacturing. It is in the thrusts of tremendous technological change that is exciting, and the careers and challenges are tremendous. We are going to need to get the best and the brightest, and that’s the message we need to get out there, that every bit as rewarding as any of those other industries we mentioned a moment ago, and going forward, it is very much on the forefront of change going on around the world, and both driving and utilizing every technology that you can and can’t imagine out there.
(Closing music)
Thursday Mar 22, 2018
Thursday Mar 22, 2018
So, you're wanting to scale your business to the next level? Or, maybe you've recently launched a startup with high hopes of its success. Well, you're in luck. In this episode of The ROI Podcast, Faraz Abbasi, a partner at a private equity firm, reveals what they look for in a business before considering an investment.
----
Do you have a question? Looking to get help on a business decision? Know a great guest for our show? Email roipod@iupui.edu so we can help your organization make better business decisions.
----
Ready to take your next step? Check out if a Kelley MBA is right for you: https://bit.ly/3m2G6D5
----
Show Notes:
(The ROI Podcast Music)
Shane: Welcome back to The ROI Podcast, everybody! I hope you’re having an amazing day out there! I’m your host, Shane Simmons. I’ve got the associate dean of academic programs for the Kelley School of Business, Phil Powell next to me and we have a really cool episode. As you know, we are a few episodes into our CEO series, where we’ve been interviewing some amazing executives and figuring out what has helped them elevate their careers so they can live their best life. Well in today’s episode, we’re talking to someone who you could call a CEO to CEOs. His name is Faraz Abbasi, he’s a Kelley School graduate who’s the Senior Managing Partner at Centerfield Capital – a private equity firm in Indianapolis. And Phil, I know you’ve known Faraz for some time now.
Phil: Absolutely. I knew Faraz as a student in the Evening MBA Program. During the program, he made a decision that he wanted to go into private equity, and to make that jump, he contacted Centerfield Capital to volunteer his time. And now he finds himself as a managing partner. He's been very successful. It's a classic example of going after what you want to do. Now he finds himself making investment decisions in new businesses. So, he brings a lot of wisdom and I'm glad we could have him in our episode today. I started my chat with Faraz talking about the factors that determine whether or not a venture fund chooses to invest in a company.
Faraz: So the common sentence in our industry is we’re investing in management, not in the company necessarily - the management team holds the most critical component of our investment thesis. The most important point I would make is when management teams have a strong track record and put skin in the game. We’ve done a ton of analysis over 18 years where we’ve looked at what has worked for us and what hasn’t. The one thing which sticks out is when the management team has skin in the game – they’re re-investing their capital, they take some chips off the table, and for the first time, they’re becoming investors in the company.
Phil: So Faraz says the management team needs to be engaged and have skin in the game – which he says is when they are re-investing their capital in the company. But Faraz makes it clear – that many firms, before investing in a company – are looking at the first impression they get from the CEO.
Faraz: When we go into a management presentation where a management team is presenting to us an investment opportunity, if several people are on their cellphones, we walk out – we try to wrap the meeting up pretty quick. If they’re not fully engaged with the conversation, [that’s not good].
Faraz: In terms of other things with management, if they’re not engaged and it’s a team where we feel one person is talking during the whole management presentation and the rest aren’t participating, that’s a big red flag as well. This person leading the organization must be a control freak, he’s one that’s demanding or controlling the whole conversation. We’d like to get a chance to speak to each member of the management team and look at their management depth – again, we’re not investing in one person, we’re investing in a whole team.
Phil: So if you are out there looking for investors or venture capital – think about what Faraz just mentioned. It’s not always the idea or product that investors are looking at – they are also looking into the management. This is where you really have to sell yourself! But what about specific traits investors may look for? Here’s Faraz’s response.
Faraz: I would say the knowledge. I’ll give you a quick example, we invested in an outdoor gaming product company in Westfield, and it was a company which in the initial review didn’t pass The Smell Test because of the size – it was a smaller company, and we typically invest in companies with four million of [unintelligible] plus. Because it was local, we decided to talk to the management team and discuss the company further. Another risk has we thought it was a one-product company, mostly cornhole and beanbag games. Long story short, we went and visited the management team, spoke with them, and they really wowed us in terms of the knowledge they had.
They seemed to be not only very knowledgeable but also very partnership-driven, so we took that meeting, came back, and decided it was a company we wanted to go after and invest in.
Phil: So, to all of you business owners or executives out there looking for investors – Faraz mentions knowledge and having a partnership-driven attitude.
Faraz: That’s a big win, and the other big win is where the CEO has built such a good team that they have a strong succession plan. If they get hit by a truck, they have enough people in a place where the company will still survive and thrive without them. That, again, that bolds to a higher evaluation for that kind of businesses. It’s not common to see those kinds of CEOs in our businesses where, again, often times we augment the CEO in place already with other people where in 3-5 years the CEO will retire and the next tier of management team will take over for that reason.
Shane: So here is the lesson Faraz really wants our listeners to take away: You may have an awesome product or service, but without great executive leadership, those businesses don’t look nearly attractive in the long-term. And this is especially important if you are looking to raise capital for the business.
Phil: It's really this simple: A good venture capitalist, when she gets a business plan, first turns to the leadership bios, and if it pasts that test, then they look at the business model and the product. So it's the complete opposite of what you think. That's the way smart money follows smart opportunity.
Shane: And as I listened to this interview, Phil, I picked up on something Faraz said and we all talked about after the interview, and that is that better executives can let go faster. Meaning, they don’t have to be involved in the day-to-day, they’ve built a strong enough team who can take care of the details, while they focus on the big picture.
Phil: If you're going to be an effective executive then you have to scale yourself. Which means you constantly have to be shedding tasks. As the chief executive officer, you're really the chief communicator.
(The ROI Podcast Music)
Shane: That’s going to do it for this episode of The ROI Podcast. We want to thank Faraz Abbasi for being on the show and giving us an inside look at what investors are looking for in leadership before investing. We will be back here next week talking about traps to avoid as an executive – and how to prevent feeling too overwhelmed. In the meantime, don’t forget to subscribe and leave The ROI Podcast a review on iTunes. Keep up with everything we’re doing! And we’ll talk to all of you next week here on The ROI Podcast!