Preparing the operations of your business to maximize your profit in a sale.
I am honored to be a guest blogger this week for the Successful Transition Planning Institute. Excerpt of the blog is below, or click here for the full story. Regardless of what ‘operations’ means in your company, there are things you can do to get your operational house in order before you bring in a formal transaction team that will maximize the value of your company and get you the highest possible price in a sale. There are some operational documents that every M&A professional will require. If you have most of that completed when they walk in your door, it will save you money and time during the critical due diligence phase, and it puts forth a great first impression as a company that is organized and efficient. There are also issues that arise during due diligence that require immediate attention and can be quite time consuming – the more you can do in advance, the more time your team will have to address those urgent items as they arise. As a general rule, you should leave yourself 6 months to review your major processes and either update existing documentation or create documentation where none exists. Regardless of your company’s size, you can create simple and straightforward documentation for each of these items – never create 10 pages when 1 page will do the job. FULL STORY Debbie Millin is the President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com I am proud to have another blog featured on Bentley University's IMPACT site - and as an added bonus this time, it is also featured on the front page of Boston.com. An excerpt is below or click on any of these links for the full blog.
After 20 years at work, first in the corporate world and then building my own business, I began to think back on when I was 20 years old. A sophomore – recall that the root of the word is “wise fool” – I thought I knew a few things about what awaited me in the world. Nothing beats experience, though. Midway through a successful career, with several professional peaks and valleys, here is what I would have advised that young Bentley student when she was halfway through her college education. FULL STORY Debbie Millin is President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com Most startups face a tough combination of being low on cash but in great need of more employees to help the company grow. A common scenario is a CEO/Founder hiring a CFO to help with the financial end of the business early in the company's lifecycle. However, in a startup scenario the CFO takes on far more than finances, often becoming the #2 in command and running the day to day operations.
Operational executives and COOs are sometimes considered a 'luxury' during these cash strapped periods in a company's growth, yet many highly skilled CFOs do not have experience in supporting the operations, processes, employees and clients of a business. Owners and CEOs may be putting the CFO in a tough position by asking them to take on too broad a range of responsibilities - that is not good for the owner, the CFO or the company as a whole. Yet there is a critical need to focus on your operations in order to succeed and grow. Bringing in strong operational support, particularly an executive operational consultant, can get you quick results and help your CFO develop their operational skills. Here are 3 steps to support your CFO in managing the operations of the business and grow your startup: 1. Assess your CFO's operational experience If your CFO has a background in startups, chances are he/she had some responsibilities beyond finance - find out what was included in the role, what they are most comfortable with, and what their preferences are in terms of certain departments or responsibilities. If your CFO is coming from an accounting firm or large company, it is good to do a slightly deeper dive. In this case it is likely they have not had a lot of operational leadership experience, so draw out what departments they have worked with closely and where their strengths might be even if they don't have direct management experience. 2. Review the CFO's job responsibilities The job description is a good place to start, but that's not the whole picture. Certainly discuss the departments where they have direct managment responsibility, regular deliverables (such as monthly financials) and current projects - that includes internal system implementations, customer facing projects, marketing campaigns, fundraising efforts...anything where the CFO is involved. In addition you should review what is needed from the CFO in terms of support for legal, HR and client issues and how those tasks are shared with the CEO. This will help you both to see if the CFO's workload is too broad (which let's face it, it generally IS in a startup) and where you may need additional support. 3. Surround the CFO with strong operational support Every executive has certain strengths and tends to gravitate towards the areas where they are most comfortable. The CEO and CFO should work together to identify the operational areas with the most need and fill the gaps. Develop new roles in the company to fill those needs and look for candidates with strong experience in those areas. These positions do not need to be high-level management positions - having strong supervisors and individual contributors can help you to round out the skills needed in your organization. For quicker results and true development your CFO, hire a senior operational consultant. This individual can support a specific project or act as a part-time operations executive to augment your CFO's skills. An experienced operations consultant will help you complete tasks and projects, and will also be an 'operational coach' for your CFO and guide them through operational issues - a safety net while your CFO gains direct experience. This not only gets immediate results and growth for the company, but also benefits the CFO's overall professional development and strengthens your company for the long run. Debbie Millin is President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com Harvard Business Review recently published an article entitled Are You Really Ready for an Acquisition? which stated that assessing the operations of a company BEFORE the deal is a major factor in having a successful transaction.
Too often M&A teams become too focused on the numbers - obviously an important piece of the transaction but it is not the whole picture. HBR suggests the following to start your process: First, create a high-level picture of what you want a combined company ideally to look like one year after a successful integration — not just in terms of finances, but also in regard to operational practices, strategic initiatives, organizational structure, and culture. What does the new organizational structure look like? How will you support the existing clients of both companies? What processes do you need to integrate? What are all the systems being utilized by both companies - which will stay, which will be eliminated, and which need to be combined? What information do you need to extract before you shut down an existing system - and what will you do with it? What is the culture you want to create in the combined company and how will you integrate the teams? There are many logistics to think through in addition to the larger overall strategy, but the more planning you are able to do in the early stages of the deal, the smoother the transition for your employees and your clients. Companies bring in consultants to handle the financial aspects of a deal without a second thought - bringing in an expert on the operations side can pay huge dividends as well. UpperLevel Solutions has been through M&A transactions on both sides of the deal and has developed a methodology to help you think through the operational strategy and logistics to support your existing management team. Contact us today to find out how you can benefit from an operational assessment in your due dilligence phase. Debbie Millin is President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com I am VERY pleased to be among the first alums to write a blog post for Bentley University's IMPACT. A quick excerpt is below, or click here for the full story.
One of the greatest operational issues is “staffing mismatches.” Having people in the wrong roles can create a dysfunctional organization and keep your company from growing. Operations teams need to run like a well-oiled machine, and in order for that to happen it is crucial to have the right people in the right jobs. FULL STORY Debbie Millin is President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com Technology is powerful - but it's when you unplug and focus on relationships that business gets done.
We are continuously 'connected' in every aspect of our lives. It is becoming increasingly important to find ways to unplug from our many devices and get back to focusing on building our relationships. In business, that means your relationships with your employees, your peers, your boss, your vendors, and your clients. Remote Employees Technology allows companies to have employees work remotely - a great benefit to the employee in terms of flexibility, and to the company in terms of increased productivity. However, if employees are constantly called off hours and weekends for work issues they can burn out quickly. This leads to everything from decreased productivity, to health issues, to the employee leaving the company. Keep it balanced and focus on the relationship with your employee - only reach out off hours when it's truly an emergency, and be sure they are taking vacation time shortly after a stretch of long days working on a project or to meet a deadline. Make sure they are taking time to unplug. You will build trust and loyalty - valuable commodities in any business. In-Person Meetings I am a huge believer in unplugging during meetings (the only exception being to pull up documentation or take notes on a laptop). So often people will sit in their offices or at their desk and dial-in to a meeting with people sitting in the same location. Get up. Go sit in the conference room with your colleagues without your electronics and have a discussion. For your remote employees, invite them to the office for key meetings as much as you can. At a minimum, have a corporate wide event once a year to get people unplugged and in the same room. I have seen year-long issues solved in days when people sit down and focus without the distractions of computers and phones...because talking to someone when you are sitting across a table from them is much different than emails or even phone calls. Building your internal relationships makes your company stronger. Client Visits If you are only communicating with your clients through emails and phone calls, you are doing yourself an injustice. This is one of the most important places for companies to unplug...get in front of your clients as much as your budget will allow. The most profitable clients are usually the ones that have a personal relationship with their sales and/or account management team. Take them to dinner, golf, a hockey game - these events help you build a personal relationship with your client team, and many a deal has been finalized on the golf course or over a steak dinner. Human Connection Within 2 days, I heard a story on NPR about a family who instituted a no-electronics-rule every weekend, and a story on The Today Show about The Samaritans greeting commuters on the T in Boston to start their day off with a smile. We all have a need for human connection - in our personal lives and our professional lives. Remember to unplug once in a while and keep your business relationships strong. Debbie Millin is President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com You are known as an expert in your field - for being the best at what you do. Yet often the things we do so well for others we find difficult to do for ourselves. The old 'the cobbler's children have no shoes' syndrome.
This is especially true for those providing professional services. Take a look at your own business plan, your marketing plans, your website, your financial statements - whatever you spend so much time doing for your clients, take a moment to do it for yourself. You may think you don't have time - that there are too many other things to do. Make the time. Being your own customer not only gives you a new perspective on how your customers are viewing your processes and deliverables, it also makes your company better and stronger. Make sure you are benefiting from your own wisdom! Debbie Millin is President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com It's Oscar season - a time when the movie industry recognizes the best and brightest in their field and showers praise on their performance over the past year. In business we don't get to have a glamorous awards show, but it might be a good time to take stock of your own superstars.
Who are your best employees? Take a look at your rising stars and what you are doing to let them know what you think of their work. An annual review is a great tool, but a little extra recognition can go a very long way - that can be anything from a handwritten note to a spot bonus. Could you nominate them for industry awards or local/regional business awards? What are you offering for them in terms of professional development? Be focused on retaining your top talent at all times and on making sure they know they are considered a star. You should also look outside your company at your best clients and vendors - they are superstars too. Let them know they are appreciated, take them out for lunch or dinner just as a thank you. You can start off the year by bringing a smile to someone's face and building a stronger relationship with your most important partners. Your superstars - inside and outside your company - keep your business running. Be sure you take care of them. Debbie Millin is President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com I recently saw an interview where the subject was asked to give 10 words that
described him. I thought this was an interesting exercise - for individuals and for businesses. What words would you use to describe your COMPANY? Try using a site like wordle.net to create a word cloud using text from your website or from company documentation or emails. You can limit the amount of words it pulls to the top 10, or you can have up to 150 words in your word cloud. Does it create a picture that you want your business to portray, or do you want to shift your focus? Are the top 10 items reflective of your top 10 strengths? What are the 10 words you want people to think of when it comes to your business? Debbie Millin is President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com In business and in life, we are faced with situations every day that require us to be brave and move forward. Bravery seems to be a theme I am running into everywhere I turn. It was the topic of a weekly newsletter from a great entrepreneur and friend, Chris Brogan (click HERE for a free subscription). It is also a theme of his newest online course Brave New Year, and woven through his new book The Impact Equation. I saw Dr. Brene Brown speak recently in Boston, and my daughter gave me her book, Daring Greatly, for Christmas. It is about courage, vulnerability and bravery, with some incredibly poignant passages on what courage means to those she has interviewed over the years. Another entrepreneur and friend, Wendy Capland, founder of Vision Quest Consulting, encourages women to make their "Next Bold Move" in her seminars.
Perhaps it's time to start listening to these experts and be brave. How can you apply bravery to your job this year? Propose a new product to your boss, set an aggressive revenue goal, accept a new job or start your own company...each of us can find ways to be courageous and brave in our work. You can reach goals you never imagined and find success you had only dreamed of because you were brave enough to take a step towards that dream. And what's the worse that can happen...failure? Failure is simply a step towards success. Wishing you a very happy and brave 2013. Debbie Millin is President of UpperLevel Solutions - a Boston-based firm offering part-time and interim Chief Operating Officer services, operational assessments and executive project leadership. www.upperlevelsolutions.com |