The Will to Grow ™

"The Internet of Everything"

At the recent annual YPO IT Network Conference on Mobility, I had the distinct privilege of hearing Dr. Paul Jacobs, CEO and Chairman of Qualcomm, speak and then meeting with him afterwards. One of the key takeaways from our discussion is what Paul called “The Internet of Everything.” The spread of mobility is leading to a world of complete connection. Whether with your phone, tablet, laptop, or other devices, in today’s world we utilize various types of mobile solutions to connect personally and professionally – it’s amazing how times have changed! I remember the first time I went to St. Bart’s in 1998. I had started with a venture capital firm earlier that year, and the first thing the CEO did was hand me a cell phone and pager. My wife and I were at a villa in the middle of nowhere as we watched a small truck drive up a steep hill to our villa. The man ran over to me and handed me a fax because my cell and pager weren’t working so well in the Caribbean (which didn’t stop my CEO from finding me!).

In today’s world, this wouldn’t happen. Wireless is becoming so pervasive (St. Bart’s now has real coverage) and innovations in mobility allow connections in the most remote locations. Actually, more people now connect through mobile solutions than through wired solutions. Where the market is trending is toward “The Internet of Everything.” Our mobile devices will not just allow connection, but will enable consumption and ultimately control (Connect – Consume – Control). Imagine all of your devices built with sensors and radios, such as your printer, photo display, washing machine (yes, appliances too), etc. Through your mobile devices you will actually be able to control much of your environment. You are seeing glimpses of it today where you can control video cameras remotely, your entire entertainment system through wireless controllers, and access music not even stored locally but by selecting songs from the “cloud.”

This is the beginning of controlling your environment. We haven’t seen anything yet, and it all started with the “mobility revolution.” I am excited what the future holds as our ability to Connect, Consume and Control continues to improve and becomes the norm, a part of life you can’t imagine being without (just think of not having a cell phone today). I guess no more faxes for me in St. Bart’s!

IT - the Recruiting Challenge

I don’t have a lot of time to attend conferences, so I tend to be very selective and only go if I see real business value. Over the last two weeks, I attended two important technology conferences (yes, two in two weeks – my family is not very happy with me): The Young Presidents Organization (YPO) annual IT Network Conference (this year focused on mobility) and the Best of Breed Conference which brings together top technology solutions companies across the nation. I will separately blog about some key learnings from both conferences.

Over the last two weeks, the most repeated question I was asked by my peers, journalists, vendors and others is what I considered to be Axispoint’s most critical challenge. The answer, simply put, is recruiting. The US unemployment rate remains over 9%. People want to work and are searching for positions. The problem is the unemployed are not in technology and if they are, they have been difficult to find in the geographies we serve. Axispoint has worked diligently to hire over 30 new employees the last four months, but it has been nothing less than painstaking. We have multiple people internally and externally attempting to find and hire the right talent, but in many cases they either don’t exist or aren’t leaving their current positions. One of the reasons many US companies have looked overseas (e.g., India, China, Brazil, etc.) is to have greater scalability opportunities (as well gain cost efficiencies).

I believe we have an education disconnect in the US. Not everyone has to attend a four year college to have an important role in technology. It seems a part of our issue is a mismatch in skills. I believe if some folks were to obtain technology training and skills at a multitude of institutions and organizations, the technology firms across the US could put more Americans to work.

In Monday’s (10/24/11) Wall Street Journal (“The Journal Report”), Peter Cappelli disagrees with this premise or at a minimum takes an alternative point of view. His thought is that the education system is not failing our economy, but rather, companies deserve a lot of the blame themselves for unemployment. First of all, I’m not saying the education system is to blame; I’m saying we need to re-educate some of our workforce to meet demands in the marketplace. In other words, if there was a significant need for actuaries, and there were 100,000 vacancies for this type of work, it would be nice if supply could be developed over time to meet the demand.

I do agree with Dr. Cappelli that sometimes it can be a catch 22 in that recruiters often want people who already have a job. However, I only partially buy-in that there is a “clearing problem” in the US; i.e., he argues there isn’t a skill shortage, but rather companies won’t pay the clearing price for the talent. I believe both issues exist, though in the near-term I really see a shortfall in IT talent. Axispoint and my peers are experiencing it every day. When I answered the critical challenge question with recruiting, my peers vehemently agreed stating that they are living with the same dilemma.

We are attempting to come up with innovative solutions. We are trying to figure out how to hire smart talent and then train them. These are important things to do and companies like mine need to perform these tasks. I think the real change though comes to bear when companies act in combination with the workforce developing new skills based on changing market demands. To get America back to work, it will be a collective effort. Technology is a hot bed and a great place to start.

Steve Jobs and Disruptive Business Models

Numerous articles and blogs have been written about the brilliance and innovativeness of Steve Jobs. With his passing, the world has lost a pioneer and leader in technology and industry. I didn’t have the privilege of meeting him or knowing him, however he has made a lasting effect on me and my thoughts on growth (and I don’t mean because of the Apple products I own and consume).

What resonates with me most and makes me want to emulate in my career is his ability to create disruptive business models and change entire industries through innovation. Sure the iPod became the digital version of the historic Sony Walkman, but to achieve superior growth and own a market, Steve Jobs and his brethren at Apple created iTunes and in very short order changed the entire music industry on a dime. As many of you know, we, at Axispoint, have been deeply involved in the music and entertainment industries for a number of years, building software and critical systems for leading companies. I have witnessed first-hand how iTunes significantly advanced digital music, helping plummet lucrative CD and other music product sales.

When Apple launched the iPhone, it wasn’t on the map in mobile devices and telecommunications. However, by creating a user experience that was so simple and graphically friendly and opening up a platform to let developers build applications (and then monetizing it) and users download them, Apple revolutionized the cellular market. I don’t think companies like Motorola, RIM and Nokia could have imagined such as disruption. Apples App Store is now the leader in applications and Apple is providing new iPhone innovations in every release such as voice commands, cloud services, etc.

And what about the iPad? Apple created an entirely new category of product in the computing, e-reader, and mobile device world. I own the iPad 2 and find the functionality and ease of use so powerful and simple, I can just imagine features that will be coming down the road. I still own a laptop, but with an iPad, why would I need to buy a small notebook? What will happen to that product category when computing features become more prevalent on the iPad?

I’m mentioning some of his recent successes, but Steve Jobs has been innovative his entire career. For example, many people forget that he created Pixar, another disruptive business model. Pixar used such advanced technologies and concepts that it forever changed the look and direction of animated films.

I know I’m one of a plethora of people who have praised his accomplishments. Yet for me it’s not just around product development; it’s the ability to creatively change markets. Someone recently said to me, “The best way to predict the future is to invent it.” No one epitomized this more than Steve Jobs.

Technology as Revenue Generator

I am very pleased that we are projecting Axispoint’s revenue to increase approximately 40% this year, all of which through organic growth. Many of my peers have asked me why we are experiencing high growth during an often turbulent market. In addition to Axispoint’s strategy and tactics to try to outpace the competition and market growth (which I have blogged about in the past), there are two macro trends I would like to discuss that affect the technology services industry.

The first is most intuitive and has been an influencer for decades. Companies are always looking to achieve gains in efficiency and often look to IT to provide automation and streamlining of processes through systems. This, in turn, leads to improved productivity and often cost cutting measures that drive corporate profits. Technology automation and efficiency gains are especially relevant in an economic downturn where businesses want to reduce overall operating expenses.

The second macro trend is newer and really excites me. Over the last few years, I am seeing more and more businesses involve their technology teams to help drive revenue and growth. Yes, that’s right – technology as an enabler to growth! Obviously, technology has always been a revenue driver for tech and software companies, yet I have seen businesses across industries from retail to hospitality to real estate to health care, engage their IT teams and in turn companies like Axispoint. CIOs and CTOs are beginning to be viewed as integral parts of the “C” Suite who can help their companies achieve new heights, whereas in the past many IT departments were viewed as outright cost centers.

This is an exciting and motivating trend for technology solutions providers. Automation and efficiency gains will always be important, but now the conversation involves the business and how we can affectively work together to achieve superior growth.

Achieving Superior Growth in Uncertain Times

The macroeconomy is clearly performing better than two years ago, when we were in the middle of the worse recession of our lifetimes.  Though the market has recovered, it hasn’t achieved the growth to date we are all hoping for.  In particular, unemployment remains far too high, the housing market is still experiencing weakness, and the credit markets have yet to return to pre-recession levels.

 

What does this mean for your business?  How do you succeed during a slow recovering marketplace?  First, you have to look at your industry’s performance, and second how you are differentiating yourself in that industry.  Axispoint is a leading technology solutions company focused on three core areas: IT Services, Application Services and Managed Services.  Several macro and micro factors have affected our sector.  At last year’s VAR 500 Conference, it was stated that over 50,000 IT Services companies in the US went out of business during our recent recession.  This is a staggering and sobering number.  No one likes to hear about peers and their respective employees losing their jobs.  In 2011, the technology services sector is experiencing growth again.  Clients have considerable capital reserves, and they need applications and infrastructure to not only gain efficiencies, but better position themselves for revenue gains.

 

I have never been satisfied with “at market” growth.  The uptick in our sector is good for business, but the right strategy and more importantly, exceptional execution, is what will determine if your company can achieve above average market rents and growth.  At Axispoint, we are laser focused on our core business, while continually building out our “hot” subpractices that are part of those core offerings.  We have several solutions that are currently in high demand, such as Mobility (DAS and Applications), Business Video, and Enterprise 2.0/Collaboration.  We also have a more focused sales approach, putting in place a Named Account strategy two years ago that has proven successful for both clients and Axispoint.  If you can truly “box above your weight” with a superior sales model, and excel in delivery and customer care, you have a strong formula for sustainable organic growth even during wavering times and markets, such as we are experiencing today.

The Importance of Vacation

I don’t know about you, but I’m definitely the type of person who can become so focused that I sometimes forget the importance of taking a vacation and recharging the batteries.  I’m currently on a plane, flying home from my favorite place to get away, St. Bart’s.  I could write a year’s worth of blogs on why St. Bart’s is so special to me and feels like my home away from home, but it doesn’t matter where you go or what you do, as long as you find your peace and relaxation. 

I’m a Type A personality and I like to run hard and fast (the key here is that I truly like to live this way – no one forces me to do it).  I also am involved in numerous activities from work to YPO (Young President’s Organization) to being a Little League baseball coach.  Most of the executives and entrepreneurs I know (those focused on growth) are similar in that they have a lot of proverbial balls simultaneously in the air.  What we often forget (me clearly included) is that we are all just people, human beings trying to grow personally and professionally.  And a key aspect of growth actually occurs during downtime.  Whether you are reconnecting with a spouse or significant other, building family memories that will last a lifetime, or focusing on reenergizing your spirit, a vacation (time away) will help your mind, body and soul grow.  I actually find that I do some of my best creative thinking when I’m away with fewer distractions.  So make time to stop for a moment, decompress, and enjoy “other things.”  I guarantee it will significantly help you and your business in your quest for growth.

Next, we need to figure out what to do about constant connectivity via smart phones, iPads and other electronic devices (I love being connected but there’s also a true downside to 24/7 access wherever you are)… 

Moving Forward

I recently heard a quote from Gordon Bethune, the former CEO and Chairman of Continental Airlines.  He said “Do you know why a Boeing airplane has no rearview mirrors?  Because you don’t need to look behind you when you’re flying 500 mph!”  I love the metaphor; he is obviously saying don’t dwell in the past.  I agree with Gordon, but also believe the past is important.  As leaders, we need to understand the past; what occurred, what decisions worked well and paid dividends, and most importantly what didn’t work well.

Coming out of the worst recession in most of our lifetimes, from a macro level, we need to understand why we got into this mess in the first place (greed, overextending ourselves, unsustainable borrowing, etc.).  From a micro level, we need to review how we managed our businesses during the recession and what we need to change.  For example, at Axispoint, we placed several strategic bets - we actually invested our way through the recession.  Some of our investments have led to better than market growth coming out of the recession.  For example, we created a Named Account strategy that has truly been groundbreaking for us in terms of targeted selling and larger accounts.  Yet, we must not forget our failures.  At Axispoint, not all of our strategic bets panned out.  For example, we overextended ourselves in one particular region with a plan to build out and capture market share, yet we didn’t have the results.  We have done a deep dive into this broken path and have learned what to do and what not to do to deliver better results next time.

You have heard me say this before, good leaders aren’t perfect.  They make mistakes, but more often than not, their strategic decision making is sound and strong (they tend to be right more than wrong).  The best leaders look back, understand what did and did not work, and learn to build greater success and achieve superior growth.  So the past is important because of this critical learning, but Gordon is dead on.  We can’t dwell in the past.  We need to learn and move forward to drive to the next level!

 

Partnership Begins With Trust

Axispoint’s corporate vision is “To be the trusted technology partner to our clients.”  We have been embarking on this vision for years.  It’s the overarching theme that drives our culture and business.  Though the words seem simple enough, it is extraordinarily difficult to achieve true partnership with your clients.  In the IT world, the word vendor is often heard and used by companies looking to employ technology services.  I cannot stand this word!  A vendor to me implies an arms length relationship, low value provider, procurement, etc.  At Axispoint, we strive for partnership, i.e., having a close and consultative relationship with our clients, providing high value-added solutions, and strong customer care, all at a fair price.

 

Why is this so hard to achieve?  The key hurdle in developing a partnership is establishing real trust.  Trust cannot be blindly granted or assumed, and there certainly isn’t any magic pixie dust that makes clients suddenly let you in.  Trust has to be earned.  You need permission to establish the next level of relationship.  Therefore, partnership isn’t really an event or something you can singularly do; it’s a journey that takes time and commitment.  At Axispoint, with a new client we often begin with a smaller project, typically a technology consulting engagement where we truly demonstrate our value-add.  And interestingly enough, we actually begin the process of over delivering during the sales cycle before the project is landed.  Our objective is simple: listen closely to the client’s business challenges and needs, and then design the right technology solution to meet those needs.  The more cookie-cutter solutions (one size fits all) you offer, the more likely you will be a vendor.  Once we deliver superior work for our new clients, we have begun the process of earning trust.  Typically, this leads to more work and larger projects, and the cycle becomes viral. 

 

Interestingly enough and most importantly, you have to realize the journey never ends.  Once you have earned your client’s trust by providing the right solutions and putting the customer first, you have to repeatedly execute.  Services businesses can lose trust far faster than it took to earn it, which is why continual customer care is paramount to our business.  Trust and execution drive partnership status.  There is nothing inherently wrong with being a vendor if that’s your business model.  At Axispoint, we cherish long term client relationships, attempt to offer technology solutions that make a difference to our clients, and in turn strive to achieve superior organic growth.  What is your business model?  Do you want to be a vendor or a partner?  How will you execute your strategy?

 

Peer-to-Peer Learning

I am a proud member of Young President’s Organization (YPO), a leading network of 18,000 CEOs worldwide.  We recently held our Global Leadership Conference and Summit in Denver, CO which brought together more than 2,000 CEOs from across the globe.

The Conference was excellent and offered education on a number of leadership and management topics.  My entire life I have learned from experts, whether they be faculty from business school and college, to business and government leaders in their respective fields.  I don’t know if you feel the same, but my most critical learning in my career and life in general has been from my peers.  When I was in business school, I learned a number of intangibles from my classmates, such as Japanese and Korean culture, how the Iceland economy really works, and what it truly entails to be an entrepreneur.  Hearing from experts and reading books can provide pertinent information, but I’ve always found the best education through listening to people, my peers, and learning from their experiences.

YPO leaders are not a homogenous group.  They roughly divide into three categories: entrepreneurs, owners of family businesses, and “hired guns” (professional CEOs).  Within these categories, YPO CEOs come from different cultures, walks of life, educational backgrounds, and essentially have divergent experiences.  The common thread is that each YPOer runs an organization and faces significant issues in their respective businesses.  The gathering of over 2,000 of these highly talented folks at the Conference was a terrific “learning” event.  I really tried to listen to my peers and heed their advice on shared issues.  Not only did I learn about business issues, but I absorbed geographical and culture experiences, such as hearing about the current environment in the Middle East.

You are never too old to learn something new every day.  And whatever your peer group is, I’m certain you can find a wealth of knowledge around you.  The only trick is you have to be willing to ask.  During my life I have discovered that people around me have been most gracious with their time and thoughts, as long as I was willing to inquire.  So, tap into your peer group.  I guarantee it will help you grow.

Passion

I’m on my way to YPO’s Global Leadership Conference in Denver, CO where over 2,000 CEOs from across the globe will come together to teach, learn, network and grow.  During my five hour delay at NYC’s LaGuardia Airport (yet another snow storm in NY), I have been thinking about common threads among these CEOs, and how they might help others grow their businesses.  YPO attracts three types of leaders: Entrepreneurs, Professional Managers (Hired Guns), and Family Business Executives.  They come from different cultures, walks of life, religions, education, political views, etc.  However, they possess a few common threads; one critical commonality being passion.

I believe passion is an important variable in the formula for success.  This cuts across both personal and professional accomplishments.  Time and time again, those that achieve the most often had an unparalleled commitment to making that accomplishment a reality.  This energy and fire started within.  Everyone has different reasons for motivation, but those who can channel these motivating factors knit them into a special vehicle within called passion. 

I do not believe that passion alone drives success; there are several other factors.  I just believe it is a critical component of what I often refer to as “making magic.”  I am really looking forward to the YPO conference this week because I can learn a great deal from my peers (always the best kind of learning) - a certainly heterogeneous group with a common underpinning of passion to drive success in their various endeavors.  Now the tricky part: to capture, bottle and live with such passion…