Archive for ‘Consulting Strategies’

December 29th, 2008 by Larry Donahue No Comments

Coaching Program

Do you run a high-tech, Internet or e-commerce business, and find that there is just too much to do? Do you believe your business could be more successful, make more money, or limit its risks better, if you could only find some extremely competent people — who know your business — that you can afford?

Practice Makes Perfect is proud to announce our coaching program: The perfect option for small to medium high-tech, Internet or e-commerce businesses that don’t quite have the revenue for a full-time business strategist, COO or attorney on staff.

For just USD$1,000 per month (with no term commitments), Practice Makes Perfect provides the following to its clients:

  • One 90-minute meeting each week, to review business issues, strategy, goals and objectives.
  • 24×7 ad hoc legal assistance and advice, to provide insight and advice when difficult situations present themselves.
  • Constant review and advice on the business plan, financials, proforma.
  • Advice on a strategic plan to maximize revenues / assets and/or contain costs.
  • Operational assistance and advice, including assistance in the institution of corporate metrics and the creation of a culture of accountability.
  • Review and feedback sales and business development processes, providing help on standardizing outstanding proposal templates and sales collateral.
  • Assistance to establish boilerplate contracts, terms of use, privacy statement, and other relevant legal documents used in the ordinary course of business.

Please contact us today, to see how we can provide outstanding insight and advice, at an affordable price.

June 29th, 2008 by Larry Donahue No Comments

It’s all a matter of prioritization

indecision

Many businesses — including some I’ve been involved with — suffer from endless firefighting. What gets worked on (i.e. fixed) is what is the most urgent at the time, usually associated with some serious customer complaining, or financial or legal risk. Ultimately, the business becomes a team of heroes, burning everyone out and not really making serious headway in what is really important: growing the business and its revenue base. The “hero model” is very dangerous for a business, because there is so much reliance on individuals. If a key individual gets sick or leaves, it creates serious disruption to the business.

I’ve found, whether we’re talking about the business priorities as a whole, or managing a software development team or project, it helps to identify priorities and focus on the highest priority issues first. By focusing on what’s important, you move the business forward and you will naturally move away from the hero model. By staying focused on the key drivers of your business (assuming you know what they truly are), your processes and systems should become more robust, fault tolerant and less reliant on key individuals.

There are many ways to devise a priority schedule, but here’s one I’ve found that is simple, easy to use and quite effective. It’s a simple “sev system” or severity scale.

Tag Meaning Definition
SEV1 Critical A revenue-generating opportunity, or representing a definite and substantial financial, legal or HR risk to the business. For software development, this represents functionality that is unavailable, severely corrupted, or severely degraded for a significant number of customers and/or employees.
SEV2 Serious A cost-containment opportunity, or representing a moderate financial, legal or HR risk to the business. In software development, this represents functionality that is unavailable, severely corrupted, or severely degraded for a limited number of customers and/or employees.
SEV3 Medium A potential legal, HR or financial risk to the business. In software development, this represents an issue where a bypass or manual fix is available.
SEV4 Minor No potential cost savings or revenue generating capability, and no risks to the business. In software development, this represents functionality that is degraded, but this degradation is relatively insignificant (i.e. cosmetic or negative goodwill).

How many people or businesses do you know, that have a tendency to focus on SEV3’s or SEV4’s? We get caught up on how things look, versus how they perform or what they mean to our business, our customers or our employees.

My advice is to create, revise and maintain a list of your business tasks and priorities. Everything on the list has an assigned SEV code, and you devise a corporate policy such as “No SEV1’s will be on the list for more than a week” and “We won’t work on lower SEV issues, when higher SEV issues exist.” Devise a system of accountability, and assign your heroes to the important SEV tasks.

One other suggestion is to keep a corporate journal, wiki or help system that serves to document all your processes, functionality and systems. Make updating this system one of the components of every task. Make sure a different employee or department “tests” the functionality or issue, before its removed from the task list.

By objectively tracking the severity of the issues in your business, you will add accountability and ensure the most important and strategic issues are confronted and resolved in your business, thereby helping to maximize revenues and contain costs within your business.