Board Power!

CEOs often fall into the trap of orchestrating meetings with their Board of Directors to:

  • Show how great they are and how well things are going (whether they really are or not!).
  • Avoid leaving the meeting with more to do than when it started.

A great deal more value can be derived from working with a board but it takes concerted effort to build, cultivate, prepare for, and work with individual board members and the board as a whole for that potential to be realized. Efforts to build a high-performing board are well-spent.

Boards are not all the same

There are three distinctly different kinds of boards.  Leaders often mix-up the three kinds which leads to confusion and poor performance. It is critical for a leader to be clear about what kind of board s/he is working with and to manage it accordingly. Continue reading Board Power!

At Your Service

Service business ideas are a dime-a-dozen. The question is: Which ones will be successful?” One way to find out is to implement the idea. Another is to do the math before taking even the first step.

Watch this comic scene from Opportunity Knocks in which a businessman uses careful logic as he stumbles into a business venture.

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Click to see a short motivational scene from Opportunity Knocks.

Your service may not be what you think.

Consider, for example, how much would someone be willing to pay to listen to Beethoven’s Ninth symphony? Would it be:

  • $1 for an MP3 on iTunes?
  • $20 for the CD?
  • $200 to hear the NY Philharmonic live?

Continue reading At Your Service

Equity Rules

One of the hardest things for an owner/founder/operator to do is motivate others to perform and grow to their full potential. Watch how the  pride and endurance of a race horse transforms a struggling team into winners in this inspiring scene from Seabiscuit.

Movie rights provided by moviecomm.com.
Click to see a short inspiring clip from Seabiscuit.

Equity models are strategic because: Who gets What” defines “Who You Are!”  That is, the way owners share value with those who create it has a profound impact on the firm and the owners’ ability to attract, retain, and reward senior talent.

In his white paper, Equity Rules: Shaping powerful equity models via Sell.Pay.Convey, Mark Bronfman outlines the rules for using equity to secure a strategic advantage. His points are especially relevant to talent-driven ventures.

Private companies often use a variety of innovative tools, individually or in combination, to navigate and conquer major changes brought on by the urgent concerns of affordability, competency, and succession or “equity inflection points”. Continue reading Equity Rules

DO-SELL-GROW

You have a vision of what you want your organization to be but you do not know how to make it happen. The problem may be lack of capital, or you are consumed with the “every day”, or your team is not stepping up. The challenge is to find your organization’s constraint to growth and then to relieve that constraint.

Sometimes the solution is right in front of you but you need a fresh perspective from an experienced hand to see it, just as did Professor Nash in this scene from A Beautiful Mind:

Click to see a two-minute clip from A Beautiful Mind that shows how even hard problems can sometimes be simply solved with a fresh perspective.

An organization is a system of systems: the system of doing what it does (DO), the system of creating demand for what it does (SELL), and the system to get big (GROW). Odds are that one of these three systems holds your organization back from achieving its potential to perform and grow. Which system constrains your organization? 

IntelliVen can help. We work best with organizations who sell products or services into the enterprise and government markets. You should be bigger than a startup and a small fraction of the size you will be when you get to the goal you are after.

Contact intelliven@intelliven.com to discuss,  the first hour on our dime, your vision and challenges.

SEE ALSO

Profits Interest vs Options

Do you wonder what is the easiest, least expensive, and most flexible approach an owner/founder/operator can use to attract and motivate top talent? This post introduces Mark C Bronfman’s article on using Profits Interests vs Options to install simple, flexible, and highly effective executive incentive plans.

Profits Interest and why we need it

Founders who still own and run their businesses may bring on executives to get to the next level and/or to free themselves from being a slave to their success. The challenge is how to provide incoming executives with attractive upside at low cost, risk, and complexity to the owner, founder.

Profits Interests, an ownership and incentive planning solution under current US tax law, are often the right and best approach.  This powerful equity incentive plan requires no buy-inis not taxable at grant or vesting; and, its capital liquidations are taxed as capital gains

In his article: The Profits Interest, now available as an IntelliVen InsightMark C. Bronfman, Founder of Bold Value and affiliated with Sagemark Consulting, describes how Profits Interest can convey a true ownership interest without the friction of paying for the capital of the past. Continue reading Profits Interest vs Options

Intelligent Strategies. Successful Ventures.