Modern-day CEOs are taking on a barrage of new responsibilities in the age of rapid technological advancement and global expansion. Industry disruption seems to be an everyday occurrence and businesses are transforming at the speed of light. These new realities can pile never before seen challenges on a CEO’s plate that already runneth over.
How does a CEO conquer a growing list of to-do’s from establishing a strong organizational culture to developing growth strategies, and managing delicate political and stakeholder relations while forging ahead in this modern era? Opportunities to enter new markets and continuously innovate are top of mind in this day and age where technology has led to more competition and rapid change. The catch-22 is that a CEO is an army of one yet still are, charged with responding with agility and confidence to seize growth opportunities while ensuring organizational stability.
Native American economic development is critical for tribes seeking to effect a positive long-term impact on their communities. Federal 8(a) programs have been a great resource for Native American owned business, but tribal communities have evolved with an increasing focus on sustainable strategic economic development.
Tribal nations not only focus on the importance of cultural preservation and protected lands, but aspire to overcome big challenges facing their communities. From poverty to limited access to high-quality education, minimal healthcare resources, and inadequate workforce development, tribes work to solve these problems through economic growth. Tribes that thrive economically can better support funding for education, housing, and a multitude of crucial basic services.
Some tribal nations have excelled in the face of these challenges. Tribal economies have had a profound economic impact by growing Native American enterprises, increasing revenue, and acquiring operating companies. Prosperous tribes have also developed strong internal and external business partnerships.
“We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another”, says Klaus Schwab, Founder and Executive Chairman of the World Economic Forum (WEF).
Innovation has been accelerating for the past 300 years, but with today’s pace of technological advances, Schwab says the speed of current breakthroughs has no historical precedent. We are now entering a 4th Industrial Revolution where when compared to previous industrial revolutions, we are evolving at an exponential rate rather than linear rate.
Schwab describes: “The First Industrial Revolution used water and steam power to mechanize production. The Second used electric power to create mass production. The Third used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.”
In a merger or acquisition, discord of company cultures and disparate systems can cause the demise of a once-promising partnership. About 70% of acquisitions fail when post-acquisition results don’t meet pre-closing expectations. Many of these M&A failures are caused by poorly executed integration.
What’s surprising is that M&A failures are avoidable with careful integration planning and strategic post merger integration. Pre-acquisition, it takes a lot of forethought on how company cultures might clash and how their systems will integrate. Post-acquisition, it takes a ton of strategic elbow grease to rapidly align systems (and eliminate some), retain productive employees, keep customers, and make stakeholders happy.
Lose weight. Exercise more. The new year’s resolutions are in full gear right now. Whether it’s getting to the gym, reading more, or eating more greens, January usually begins with a reflection of how we did and what we can do more, better, faster this year.
We focus so much on being proactive in our health and personal care. But what about our business health? Is it just business as usual, again? Or do we have bigger business goals for 2019?
Talking to company owners and investors over the years, we have discovered a lot less proactivity than you’d expect and a lot more complacency. We don’t mean activity – everyone has lots of to-do lists – where busy work mask over big or growing problems.
We often get calls when the house is on fire: cash is draining away from the business, employees are jumping ship, frustrations are mounting, or lack of fresh thinking, innovation and true leadership have led to stagnation in the market. Owners say to us my ‘business is failing, what do I do’.
It’s hard not to think how many sleepless nights could have been avoided for an owner if they would have just acted sooner. We mean solve the issues not just by trying to dive in themselves or harangue the management team more, but instead through resources or tools that could extend their capabilities and help make vision a reality.
There’s no question that the number of family offices is on the rise. A recent study by Campden Research revealed that there are over 5,300 family offices worldwide. About 2,200 of the family offices are in North America. About 67% of family offices that exist today were established after 2000.
There aren’t hard and fast rules on what a modern-day family office looks like. A single family office typically has over $150 million in private wealth and is one family. In recent years, multi-family offices have increased. In multi-family offices, families — related or not — have shared interests, investment goals, infrastructure needs, or operational requirements. By coming together, they save resources. This way family offices can focus more energy on portfolio growth and increasing net profit margins.
Over the past decade, the way family offices invest has evolved. In the past, family offices stayed in their comfort zone, by acquiring operating businesses in their business sector.
Interim management has arrived, and it only took 50 years, from a specialty that started in the Netherlands and moved slowly around the world. And its first and best incarnation is the interim CFO.
A good Chief Financial Officer will help a business catapult to the next stage of growth. Whether public, private or private equity backed, a CFO leads and implements strategy that ultimately creates value for shareholders, increasing EBITDA and cash flow. The means to get there may look different for each organization, but companies choose to bring in an Interim CFO because they are looking for transformation:
Operational Improvement and Strategic Planning
An Interim CFO will streamline accounting and financial reporting, helping owners, board members, investors and the management team get a clear look into the state of the business.
The best, truest, and most bleak line I’ve heard from a mega-successful company founder was Dave Becker telling me: “we have all had the sleepless nights, when it’s 2am and you’re staring at the ceiling.” Dave is the founder of a number of companies including First Internet Bancorp (Nasdaq: INBK), the granddaddy of online banking.
From the outside, we see a successful entrepreneur with multiple home runs and think they must be sitting on easy street. What could possibly go wrong?
The answer is: everything. It always appears easy or obvious once a company has made it, but what we often don’t hear about are the trials and tribulations that happen at every stage of a company’s growth from young and unknown, to in between, and then big and ambitious. The sleepless nights. The questions of can you make payroll. The we-almost-went-bankrupt moments. This is real and it’s no surprise that many of our inquiries for help from owners show up in our inbox after the 9-5 employees have gone home.
Let’s face it: an Interim Chief Information Officer has to be of instant value to an organization. A top interim CIO can take on any technically-challenging project that would be assigned to the permanent CIO, though they usually have a focus on bringing change and transformation to an organization.
While some Interim CIOs may be brought in to perform initial work such as a technology audit — a fast way to assess if an organization is optimally set up from an infrastructure perspective — in many other cases the need for an Interim CIO is driven by a specific project or initiative:
Business and ERP System Implementation >
When a company wants to automate process or functions from finance to accounting to supply chain and customer relationships,
I was having a conversation with company founders in a healthcare startup who made the comment: “we’re new to being entrepreneurs.”
That was their opening for free advice. It’s hard building and scaling a business when most startups fail or have a tough time and that’s not celebrated enough. Instead we just marvel at the likes of Mark Zuckerberg and aspire to be like Uber, Facebook, Google.
The truth is that most every new businesses – it’s a slog. A grind. A tough battle at some point in their existence, if not in fact for many years. Steve Ballmer of Microsoft had a phrase for this: the long middle. He said its fairly easy to be creative, think up a brilliant new product, and decide to charge forward. Then comes the middle: the long slog.