A VC in Vacationland

Managing Start Ups: Discuss, Debate, Decide, Support

Lama debating (Photo credit: Wikipedia)

I attend a lot of Board meetings (for profit & non-profit), start up strategy sessions, internal company meetings, etc. etc. I am constantly amazed at how quickly many of these go off track. I find myself reminding everybody about the four key rules around making and implementing successful decisions. I know most of you know these by heart, but I often see them being ignored when passions run high. So here goes my reminder:

• Discuss--a full and fair discussion around an issue, strategy direction, organizational decision, or whatever is critical. But, please, stop repeating the same points if you or someone else has already made them. Leave that to the debate stage if you think people are not paying attention to your thoughts. Keep asking if all relevant thoughts are on the table, then move onto the next stage.
• Debate--Here's where you begin to look at the famous "three options" around a decision and debate each in turn. Why three? It's best to choose a set of options that represent the full spectrum around a decision--like, let's not do this, let's do it a little way, let's do it all the way. That way, you can get a broad reading of the willingness of the group to support a path forward.
• Decide--once you are all tired of debating an issue or direction, decide. Often, one person needs to put forward a cogent argument for one of the options and persuade others that this is the way to go. Variations on the option are discussed and compromises made, if necessary. Be sure to poll the room to make sure everyone is heard and that all relevant points are made. Then DECIDE on the path forward.
• Support--but you are not quite done. Even though some members of the group have participated fully in the decision, they may still have reservations about supporting it. Take a tally of all individuals and ask for their support, or recycle on the decision. Everyone might not be totally behind the decision but they sure better be willing to support it.

We had a rule in Accenture partner meetings that all had to support the decision, even though some might not of fully agreed with the decision. This was critical to making sure we could move ahead and implement the changes without second guessing later. We would look around the room and ask each person to speak up and offer support if we suspected a problem. But once we left that room, everyone stood behind it. Sometimes it was painful to agree, but that's what building a great company is all about. You are not always right or will get your way. That's fine.

I'm not saying you should go along with stupid group decisions, but that issue should have been vetted earlier in the process.

Supply Chain Strategy: WTF are 3-D supply chains?

English: The FedEx Institute of Technology is a major research contributor in the areas of Supply Chain Management, robotics, and intelligent systems. (Photo credit: Wikipedia)

Huffington Post recently published a Blog extolling the virtues of "3-D supply chains" (whatever they might be) and how the technology could revolutionize the global economy. The authors bemoan the fact that US companies use execution based software to manage their supply chains, but lack the strong operational feedback models that Toyota uses to drive flexibility in operations.

Well, pardon me, but the authors are pretty ignorant of the transformations going on in North American supply chain management over the last decade. FedEx and UPS use real time routing systems to alter delivery routes as requirements change during the day. Descartes' Global Logistics Network connects tens of thousands of suppliers, carriers, manufacturers and retailers, allowing real time visibility and management of shipments pending and in transit. What about companies like Alibaba and Panjiva, who give any company access to millions of global suppliers--instantly? I could go on but you get the point. A little internet searching can accomplish a lot of "3-D supply chain" objectives.

They then carry the argument to more absurd height, speaking about 3-D supply chains allowing all businesses having a "competitive relationship with like businesses under fair conditions, and not simply by size" and that a "cooperative relationship will arise between a business and its nearby competitors". Huh? Is this like not knowing you are a dog on the internet? I just don't get it. 

The authors would be better served to learn more about supply chains today than is spouting academic speak about "how things should be" in some perfect world only they have the eyeglasses to see.

Supply Chain Innovators: Zipments same day delivery platform gets funded

New York-based Zipments, an online service platform for same-day delivery, has received an undisclosed amount of funding from the New York-based  venture capital firm FirstMark Capital, the New York City Economic Development Council, and the Windquest Group of Grand Rapids, Mich.

Here is the press release.

Our society keeps wanting everything instanly, resulting in solid long term prospects for same day delivery models.

Venture Investing: Not Interested, Interested, Intrigued

Gnomes' three phase business plan (Photo credit: Wikipedia)

Venture guys have three ways of reacting to a start-up pitch. What do each of them mean? Well, here's my take on it:

Not Interested--I try and be honest with people up front. I will tell them it is not in my investing space, or that I do not understand the technology. It does not mean that the idea is bad, just that I cannot see how I can help you be successful. Your response: Move on and find a venture guy who is passionate about your space.

Interested--I'm interested enough about your idea to continue a dialogue, but you probably are missing some big parts of your business plan, like an effective marketing strategy (Note--if I see one more "viral" marketing plan, I am going to puke. There is no such thing). Your response: go away and fix the problem areas and come back and see me.

Intrigued--now we are talking. You have a solid idea, I like your business plan, your founders are credible, you have spent enough time getting to know me for me to trust you, etc. etc. Let's do business. Your response: ask for a check.

Obviously, this is overly simplistic, but it does give you a few insights into the mind of a venture guy as he or she thinks about investing in your company.