Dec 31st, 2008
by Mark Walztoni.
I’ve read Charles Dickens’s book, A Christmas Carol every year since I was a bit older than Tiny Tim. For those of you who haven’t read the book or seen one of the many play or film versions of it, that’s under ten years old.
I suppose that what first attracted me to the story was ghosts (there are four major ghosts with plenty of minor spirits) but over the years it’s meaning has changed and become more personal and profound..
For example, my early ”lesson learned” was not be miserly (like Scrooge when we first meet him) and to give to others who have less in gratitude for what I have been given. In recent years the meaning has become one of transformation, hope and renewal regardless of age or circumstances.
Dickens first spirit (his former business partner) arrives on Christmas Eve bound with chains, the “links I forged in life”. He offers Scrooge an opportunity to avoid his fate by being visited by three spirts. Scrooge reluctantly agrees and meets, in succession, the ghosts of Christmas Past, Present, and Future. For those of us familiar with assessment tools, this was total immersion!
At the end of the visits Scrooge is a changed person. He faces the shadows of his past, his losses, and avoids the fate that was inevitable unless he changed the way he behaved with his family, employee, and his colleagues.
We’ll likely all been visited by nasty financial and career apparitions in 2008 and it can be difficult to see the opportunity for renewal when we’re haunted by our choices. We can all use our holiday ”lessons learned’ to achieve lasting change that benefits ourselves and our world. . In effect, we become our own “sustainable venture”. That’s my holiday wish for all of us!
Posted in: Sustainable Ventures Alliance LLC.
Tagged: becoming a better leader · The Art and Science of Leadership Transitions
Nov 25th, 2008
by Mark Walztoni.
True performance, meaning achievement of something measurable and meaningful compared to past results, requires accountability and alignment.
The organization may focus on three to four key measures that can be measured qualitatively or quantitatively. Effective performance can then be accelerated by setting baseline measures and taking actions to improve results and then resetting the baseline.
Accountability may be shared across organizational units if a team of department leaders is formed and the senior leadership team reviews their results on a regular basis. This approach minimizes the risk of “siloed” groups and blaming others for lack of progress and aligns the resources toward common objectives.
Accelerating individual leadership performance during the first 100 days after a merger and acquisition or leadership change is also critical. Most research studies indicate that taking too long to align the organization and engaging the team is a leading cause of under-performing against key objectives.
What do private equity firms have to teach about performance acceleration? In my view, it’s their urgency in getting the right people in the right roles and focused on the right things so they can shift their focus elsewhere within their portfolio of companies.
A leading venture capitalist told me last week that his firm passes on many potential investments because of concerns that the leadership team must to be significantly upgraded to meet new strategic demands rather than the organization’s products, technology, or services.
The implication? Build the competencies necessary to accelerate performance before you meet with potential investors as they will benefit your career and organization regardless of your funding.
Posted in: Sustainable Ventures Alliance LLC.
Nov 17th, 2008
by Mark Walztoni.
It’s been almost two months since my last post- two months of political, economic and societal change that few people, if anyone, had an existing blueprint. Values, instincts honed by experience and values, and what an old boss of mine defined as “rat-like cunning” are all on display.
So is planning for change still possible and practical? I believe that without at least a conceptual framework and understanding of key change principles the alternative is fear and “circling the drain”.
The current book we’re discussing, Lessons from Private Equity Any Company Can Use, suggests that organizations do the following when they invest in a new venture;
- Develop a road map for 3-5 key initiatives and focus
- Start macro, and work down to what you will do differently on “Monday morning.8 am” – that is, the actional to-do list
- Be specific and pragmatic
- Let the facts win the day
- Create excitement and alignment
- Budget two to six months (at least the first time)
This bulleted list proposes to balance action, facts, and emotion with focus and alignment to choose, drive, and maintain critical business initiatives. Since an investor’s time frame is now 3-5 years (if not 7 depending on how our economy evolves) the day-by-day roller coaster is annoying but manageable. Certainly “things happen” but aside from war, death, and disease (both personal and organization) the path remains open.
You may have noticed that I’l retitled my blog and primary business Sustainable Ventures Alliance LLC. My reasoning is that businesses must focus on sustainability first and that alliances allow access to talented people, capital, and customers. I’ll be writing more about this concept in future blogs and as always, welcome your comments.
Posted in: Sustainable Ventures Alliance LLC.
Tagged: leading change · venture capial
Sep 11th, 2008
by Mark Walztoni.
The first principle of the book, Lessons From Private Equity Any Company Can Use is “define the full potential of your company.” As an investor’s objective is increasing the value of the organization (and therefore the equity of their investment) thorough due diligence is critical to reaching an understanding of what exactly is being purchased and what prudent mitigation strategies are required if the deal is closed.
The human capital side of the investment equation has traditionally received less emphasis during the due dilligence process, except for quantative analysis of benefit plans, pension obligations, and salary costs.
I believe that determining the full value of any investment benefits from a review of the organization’s talent pipeline, ability to access external talent, potential flight risks; and leadership team gaps that could swiftly erode an organizations’ ability execute against their strategic objectives, and current human capital performance such as turnover rates, staffing metrics, employee engagement indicators, and who and when ot offer retention, development, or separation agreements.
I spoke to the Executive Director of a large angel investing organization recently and he told me that in his experience early stage companies rarely failed due to poor technology or financing, but rather a leadership team whose talent, knowledge, and execution gaps doomed it’s ability to scale to the next milestone.
Where does qualitative human capital due diligence fit within your valuation process?
Posted in: Sustainable Ventures Alliance LLC.
Tagged: due dilligence · human capital services · venture capital
Sep 3rd, 2008
by Mark Walztoni.
I’m fortunate to be considered an Expert Advisor for the Human Capital Institute’s Comprehensive On-Boarding, Career Transition, and Merger and Acquisition learning tracks. Tomorrow I’m the featured speaker for their September “Comprehensive On-Boarding Magazine” event, which occurs from 2:00 PM – 3:00 PM EST.
Andy Kris is the Director of HCI’s Talent Leadership track and will host tomorrow’s broadcast and among our topics will be the book, Memo to the CEO: Lessons from Private Equity Any Company Can Use by Orit Gadlesh and Hugh MacArthur of Bain and Co.
It was published by the Harvard Business Press on 2/07/08 and I’ve applied many of their six lessons in my own coaching and consulting practice and as an angel investor. You may download information about the book at http://www.bain.com/bainweb/publication.
You can register for tomorrow’s broadcast under the Talent Leadership and Comprehensive On-Boarding tabs at http://www.humancapitalinstitute.org.
Also, please visit my blog for further information and applications of these important private equity business principles.
Posted in: Sustainable Ventures Alliance LLC.
Tagged: due dilligence · human capital services · private equity · venture capital
