16 minute read
Strategies
Staying ahead of disruptive technology
Take steps to understand your customer’s challenges
WHEN YOU WATCH or read about Space X’s latest feats in space, or when you learn new facts about what’s going on in the space station, or when space modules are landing on Mars, you know for sure there’s a lot of highly competent suppliers providing all of the components necessary to make those journeys possible.
Welcome to Grant Anderson’s world. He is the co-founder, president and chief executive officer of Paragon Technologies, providing safety and climate controls for astronauts making those journeys. The company’s vision is to possess an “adventuresome spirit seeking solutions that allow humans to expand their previous limits.”
It would not surprise you that he is quick to quote passages from the book, “The Innovator’s Dilemma,” written by Clayton Christensen, a guru of disruptive innovation who died in 2020.
Christensen opens the book with a cogent observation: How was Amazon capable of displacing Sears as the number one go-to option for American consumers wanting to purchase needed products or services?
His inquiry was very important because all business leaders fully understand their companies are subject to disruption in the marketplace in ways they could never have anticipated.
So, what is the prescription for staying ahead of the curve of disruptive technology?
Christensen suggested several practices that can assure continued technological leadership. He asked: 1. Are your company’s innovative efforts focused on searching for new technologies in a specifically focused market segment? 2. Does your team fully understand the needs of those customers completely? 3. Is the team within your organization deliberately kept small and separate from the team responsible for its current technologies? 4. Does the team understand their purpose is to fail early and inexpensively in testing their disruptive technology?
Grant Anderson embeds those practices in how Paragon delivers innovative solutions to its customers’ needs. Since those frequently require government compliance, they have to get it right.
When his team works for the customer, they spend a lot of time upfront trying to understand what the customer’s real challenges will be. Frequently, new technology is so sophisticated they don’t fully understand their needs.
At the end of that process, they put down the insights they picked up from the customers in writing. They want the customer to approve that working document. If the customer suggests changes, those are incorporated and agreed to in writing.
They do not employ PowerPoint. Anderson quotes Yale professor Edward Tufte, who argued in a feature article in “The Wire” magazine that PowerPoint has become more of a tool that helps the presenter rather than the audience; hence, it becomes more of a lobbying tool than a precise analysis of the real problems.
The advantage of Paragon’s approach is that the risk of new technology is shared between you, the developer and the customer. It reduces the risk of blindsiding the customer.
Paragon also ensures that the new technology teams are kept small and focused in accordance with Christiansen’s recommendation.
Finally, the testing stage is performed using the lean methodology. They try to test inexpensively so they can adjust until they find a workable solution. Sometimes that means dates for completion have to be adjusted or altered.
This is preferable to the typical American approach to innovation: “Shoot ready aim.”
But remember that taking the time upfront in the innovative process dramatically reduces the risk of failure when your product is ready for market. Or with Paragon, one might say it’s ready for launch!
They cannot afford to have failures.
I recommend you meet with teams assigned to any new technological initiative for a customer and lay out the steps they will religiously follow until the customer signs off and is ready for market.
Lastly, Paragon is continually asking its customers that are strategic partners what new and innovative technology trends they see coming. What do they feel is not working?
That information is captured and helps Paragon focus on presenting new and innovative ideas to solve those potential or emerging problems. n
DAN STEININGER
Dan Steininger, author, national and international speaker, and business advisor is president of Steininger & Associates LLC, which helps companies drive innovation. He can be reached at Danstein101@gmail.com.
Entrepreneurial life cycle
Plan an exit strategy
IMAGINE YOURSELF in a darkened theater preparing to see the preview of a new play about the life cycle of a fictional family business. The playwrights and producers are the entrepreneurs who founded the company and their employees are the actors. The play consists of four acts with an encore. This play takes place in a suburb of Milwaukee.
ACT ONE: A husband and wife are sitting at their kitchen table discussing the possibility of starting their own business. They are imagining who would be their customers and how they would cultivate these relationships. They know they are taking a chance by giving up their current positions and venturing into the unknown. They decide to take the leap, and the entrepreneurial stage of the company’s life cycle begins.
ACT TWO: As they enter the growth stage, the husband and wife begin to market their business to potential customers. They acquire small books of business, and as the volume grows, they begin to acquire office space and hire their first employees. Year after year their volume of business grows and so does their staff. They begin to upgrade their staff in order to acquire large and more involved projects. As their staff and business grows, they require more capital and they build ongoing relationships with local financial institutions. It soon becomes obvious that they need a business plan and hire a consultant to aid them in its development and implementation. id growth stage. The need for team leaders and a more formal structure becomes obvious. A leadership team is formed, and job descriptions are formalized. The company soon grows out of their existing space and a larger facility is acquired to accommodate additional equipment and employees. The roles of each employee become more defined as more projects are handled by teams. A number of new employees are added in order to meet the demands of the additional business. The husband and wife now assume the roles as president and chief executive officer and become the face of the business. Their reputation in the greater business community grows as they take on larger more complex projects.
ACT FOUR: As the business begins to enter the mature stage, and the rate of growth slows, the founders begin to consider the next step. It has been more than 30 years since they started the business, and they want to reap the benefits of their labors. They begin to consider a number of potential exit strategies. They could sell the business to a competitor or to a member of their management team. Their desire is to keep the entity intact, while rewarding the long-term employees for their loyalty. After much introspection, they decide to sell to a senior member of their management team.
ENCORE: The owners agree to stay on for a period of time so the business relationships that have been cultivated over the years remain intact during the ownership transition. The business is now being run by the new management team, with the previous owners acting as mentors and advisors.
So, what is the purpose of this dramatization? It is to illustrate the importance of having a carefully thought-out exit strategy for your privately owned business.
It is also critical that you involve experts in your planning, such as attorneys, financial planners and a firm that specializes in acquiring potential suiters for your business. You want to develop options that are best for your team and your employees. This planning is not to be last minute but one that should have been developed over a long period of time. Your goal is to achieve the maximum payback for your years of labor and dedication, and when the final curtain comes down, it’s to a standing ovation. n
CARY SILVERSTEIN
Cary Silverstein, MBA, is a speaker, author and consultant, a former executive for Gimbel’s Midwest and JH Collectibles, and a former professor for DeVry University’s Keller Graduate School. He can be reached at csilve1013@aol.com.
Employee empowerment
The movement towards the relocation of power
THE HIERARCHY organization and top-down management style has slowly been eroded with a more collaborative communication style – one that demands all stakeholders be heard.
Diversity and inclusion has also become a big initiative, in which companies want to recognize minorities so that those groups are no longer oppressed and are instead respected for their differences.
More recently, employees are demanding worklife balance and the hybrid model, which would allow them to work at least part time from home. This would require trust, believing that employees know what is needed to get their job done.
What do all of these movements indicate? A need for the relocation of power and a flatter organizational style of decision making. It is a movement towards empowerment, where employees once felt oppressed in decision making.
To have a relocation of power, leaders need to understand the concept of locus of control. Locus of control is the degree to which people believe they have control over the outcomes of their lives, as opposed to outside sources dictating decisions for them. It is my experience, as a leadership coach for 33 years, that leaders don’t oppress their employees consciously. Yes, oppression is the result of dominance, but dominance is often the result of the fear of letting go and allowing someone else to make decisions. This can be a result from conditioning that tells leaders: They must have all the answers and be the smartest ones in the room to justify their position and salary.
To relocate the power back to the employees, there needs to be a paradigm shift first. The first paradigm shift is regarding the role of the leader. If the leader relocates the power to the employees, what is their role? In an organization where the leader relocates the power to the employee, the role of the leader is to watch over the company at a 10,000-foot level so they can notice shifts in the marketplace and be aware of their company’s corresponding strengths, weaknesses, opportunities and threats that exist as a result. That means they must be keen on intuitively determining a S.W.O.T. Analysis quickly in order to pivot if necessary.
Secondly, instead of barking out orders, leaders must be curious so they can effectively engage the brilliance in their employees. This means their job would be to ask good questions to stimulate greater ideation, enthusiasm and ownership of the solution needed to succeed. In contrast, when leaders believe they are the only one who knows the right answer, they take the locus of control away from their employees and tell them what to do.
Finally, the role of a leader who shifts the power back to their key people would become the coach. This means they would stand on the sidelines and ask their employees, “What’s the plan to win this game with the current situation at hand?” By effectively presenting the indicators that require a new gameplan, the leader gives the locus of control back to the players to take ownership to win the game.
Remember: The best decisions = the solution + the buy-in
By allowing your key players to come up with the solutions and plan, leaders get greater buy-in.
Below are key areas to consider when measuring how well you relocate the power in your organization:
MINDSET: » Is the mindset in the organization one of fear, deprivation-thinking, constant change from upper management and top-down communication? If you have said “yes” to any of these questions, you still have not relocated the power to the employees. VISION, VALUES AND GOALS: » Is the S.W.O.T. Analysis shared with the employees so that they can buy into it? » Are employees asked their opinion of the vision, values, goals and solutions to address the S.W.O.T. Analysis? » Does management consider the input and show employees how the vision, values and goals were derived, based on this input? » Do employees frequently collaborate over the action plans to attain the initiatives needed to succeed? » Are employees enthusiastically engaged in the tasks needed to complete the initiatives? » Do the leaders regularly coach, benchmark and celebrate progress to keep employees engaged?
If you said “yes” to most of these questions, you have effectively relocated the power to your key employees.
As you can see, relocating the power requires a leader to engage employees in the creation of the goals and plan of action. It also requires a continual engagement of problem solving and recognition of progress made. When an organization leads in this way, there is an effective relocation of power that ignites engagement and greater productivity. n
SUSAN K. WEHRLEY
Susan K. Wehrley is an executive coach and the author of 12 books on empowerment. You can learn more about her at BIZremedies.com. She can be reached at Susan@BIZremedies.com or (414) 581-0449.
Matt Lautz Founder and CEO Neostella
“My business and my passion are technology. All my businesses have been tech-centered in some way, and to succeed in this space requires an entrepreneurial spirit. It’s that ‘high-risk, high-reward’ mentality that’s been the impetus for all tech breakthroughs – innovation doesn’t happen when you’re playing it safe. There will absolutely be mistakes and setbacks when you embrace that mentality. I have always taken the approach of not fearing those mistakes or setbacks because, ultimately, it’s in those periods that you learn and develop the most. From a leadership perspective, I encourage Neostella employees to think the same way, to not be afraid of making mistakes, to take some risks.
“Looking at current economic conditions, I could very easily choose to play it safe and continue doing things the way we have always done them. But I look at this point in time as an opportunity. Organizationally, we encourage each other to look at trends and figure out how to leverage them, to create new ways of doing things that no one has tried before, whether that’s developing a new process automation or a new way of doing business: try it. And because of that, we have a lot of interesting new ideas and products coming to market right now that will be game changers – not just for us, but for our clients as well.”
How does your company create a more innovative or entrepreneurial culture and not rely on the past?
Jake Schinker Co-founder and brand director Eagle Park Brewing
“Throughout Eagle Park’s relatively short history, we have always tried to prioritize and foster innovation as opposed to relying on our industry’s status quo. We work constantly to gather inspiration from breweries, distilleries, wineries, restaurants, bars, and beyond. Something we have learned is that being the first isn’t always the best. Many of our ideas are implemented quickly, while others may take years to develop. It all comes down to timing and being able to separate short-term fads from long-term opportunities.
“This is an important distinction, but it should be noted that short-term fads aren’t necessarily a bad thing. If we have the tools to pursue what we see to be a short-term fad with minimal risk or modification to our existing processes, it might still be a great opportunity for multiple reasons. One common reason is exposure of our brand to a new audience. I think it’s common to get stuck in your industry’s bubble and not think outside the box. In reality, Eagle Park has a relatively small customer base. I’m personally reminded of this every time I meet someone who has never heard of us or what we do. This helps to guide us in our choices of what’s next.” Britt Gottschalk Founder and CEO Geno.Me
“Interoperability between health systems has been, and continues to be, a challenge. From getting access to accurate patient data, to transferring health data to the right medical professionals, these elements influence the ability of our physicians to provide the highest standards of care to individuals. The problem that Geno.Me aims to solve is improving health care access for all, and we’re starting at the biological level. Streamlining the pipeline of health information from patient to researcher expedites the ability for population health data to directly influence pharmaceutical research and treatment plan development.
“The launch of the Geno.Me platform last month was the start of a new kind of ecosystem. Currently, the platform provides access to linked, de-identified, electronic medical records and genetic reports for various populations, while compensating individuals that contribute their health data. By combining both a patient-centric and research-centric approach, we address the existing health information gap by providing the most accurate information in relation to inherited and environmental health conditions within individuals. It is possible for people to have a convenient and affordable ongoing relationship with their entire network of medical professionals. Our approach is working to establish this as a cultural norm within the health care system.” n
BIZ UPDATE – BIZ PEOPLE
CELTICMKE, THE ORGANIZERS BEHIND MILWAUKEE IRISH FEST, ANNOUNCE SUCCESSION PLAN
The board of directors for CelticMKE, the nonprofit organization that produces the annual Milwaukee Irish Fest, have announced a succession plan for two key leadership positions, which will go into effect in 2024 and 2025. Caitlin WardHegedus, a Brookfield, Wisconsin native, will take the helm as the executive director of CelticMKE in three years, and Molly Modlinski, a Franklin, Wisconsin native, will take over the role of Festival Operations Director in two years, as the current leaders in those respective positions plan to retire. “Throughout the past year, the board prepared and adopted a strategic succession plan to ensure the long-term success of the organization,” explained Matt Jendrzejczyk, CelticMKE’s board president. “By planning ahead now, we will be able to execute a smooth transition, whilst continuing to build upon the talent and experience of our existing leaders.” To learn more about CelticMKE and read the full announcement, visit celticmke.com.
FINANCIAL SERVICES
Derek Pawlak Joins Oarsman Capital as Portfolio Manager and Research Analyst We are pleased to announce the addition of Derek Pawlak to the Oarsman Capital team. “Derek brings to Oarsman an important mix of analytical skills and indepth investment management experience. In an ever-changing investment world, he has the ability, expertise, and knowledge to make logical and well-founded decisions – exactly what we are looking for in our management teams”, says Bob Phelps, President of Oarsman Capital. Mr. Pawlak has 35 years of financial industry experience. Oarsman Capital, Inc. is a Milwaukeebased investment management firm with additional offices in Brookfield and Prairie du Sac.
LEGAL SERVICES
von Briesen welcomes George S. Peek to the Milwaukee office
George joins as a Shareholder in the Trusts & Estates Section. He has more than 20 years of experience in assisting clients in a broad range of estate planning and administration services and has also litigated several complex estate planning issues.
ANNOUNCEMENTS
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