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Product Marketing

Exit Strategy: Sue Gartner for $1.696B

I’ve seen a good deal of crazy valuations and market activity to boost share holder wealth, but sometimes you should just choose the maintenance increase.  Ultimately it appears ZL tech doesn’t realize that not all revenue generation ideas or exit strategies should be prioritized solely by the top line opportunity value.  I mean the return on investment is pretty straightforward and simple: legal fees under say a million and a crazy $1.696B top line.

I can see the retort when question on the top line estimate:

Even after negotiations it is still a $600M pay day.  Add in some contingency legal fees and the net is like $400 or like a gabillion times more than current revenues.

So while ZL clearly admits a short coming in marketing, which is the reason they aren’t leaders, thus the law suite, they might want to spend some time reflecting on the Ability to Execute concept when this is all over.

Below is a simple overview how marketing and branding just might influence a given organization’s placement in any given magic quadrant.

Many thanks to Hub Spot Marketing for their grader tools.

The 13 Troublemakers You Meet in a Startup

Don Rainey of Grotech Ventures writes a pretty good VC blog entitled VC in DC.  He covers the usual topics and provides a lot of insight into Grotech and their investment process.  Don also pens some amusing posts every now and then.  Two of my favorites are The 7 Troublemakers you meet in a start up and 6 More Troublemakers you meet in a start up.  I have worked in three different startups over the past 25 years and find Don’s tongue in cheek assessment rather accurate.  I’ve lifted rather liberally from Don’s posts and combined them into one post.  You should read the original posts and comments to get the full description of these personas.

1. Ms. Strategy

This capable, driven, articulate young lady will meet any requests for tactical execution with a discussion of strategy.   In a start up, everyone is close to both the strategy and the supporting tactics.  Some people can’t help themselves from knowing better about either or both.  Plus, talking is a lot easier than doing.

2. Mr. Big, Hollow, Pipeline

He made $300k at Cisco before taking this job.  Now he has a huge sales pipeline of brand name companies with massive revenue potential and no disciplined approach to characterizing possibility of closing them.  Ask him how a 30% likelihood of close defers from a 70% likelihood of close and he will talk about people and conversations rather than steps and actions.  I now assume that Cisco pays all failing salespeople $300k.

3. Goldilocks

The ever changing roles and challenges of a growing start up provide an endless set of opportunities to try new jobs and responsibilities.  Most people love being stretched and many discover or develop new skills or interests.  Not Goldilocks, however, as this individual tends to be too heavy for light work and too light for heavy work.

4. The Big Time Scaler

No sense building any system today that won’t scale to size of General Motors.  Yes, every start up organization has plans and dreams but sometimes you need to sell one house to get another, larger one rather than live in a mostly empty, expensive one along the way.

5. Mr. Artiste – the programmer

He is creating software (sometimes the company’s core product/hope of future success) and he isn’t limited by the contents of the requirements document.  He isn’t limited by it because he isn’t reading it.  He is creating, damn it, and brings his own vision.

6. The Holiday Maker/Union Rights Leader/Salary Surveyor

Yes, a long title, but its a big job.  First, this person will seek the addition of incremental holidays to the company calendar.  What no Veteran’s Day?  We don’t get off the week between Christmas and New Year’s?   Friday before Easter or the Monday after?  Well, you get the idea. . . .This contributor will also “represent” the feelings of employees to management without consulting many of them first.   There’s no who in this group, its a group of “everybody”. . . Finally, this person usually investigates and shares salary data for the purpose of fomenting general dissension within the company.

7. The Angry Support Person

I can never figure out what makes them, or keeps them angry, but they can be the Energizer Bunny of anger.   Maybe the line of work, or being the starting point of a feedback loop for whatever is going wrong with the product or customers, but in any case, the Angry Support Person can create a special kind of crisis

8. The IT Support Guy/ Flannel Bob

He’s busy but he is working?  Does every computer need to be taken apart?  And how come you can never make a point that he doesn’t already know about like “Did you see the next version of this has that? or “I saw they’re coming out with ….”  Answer is always, “Yeah, I saw that.”

9. The New Marcom Manager/ Captain MoonRocket

He is much cooler than you. He dresses better.  And he has come up with a new campaign to re-position the product and company.   You just don’t know how a picture of a rock in a bed of sand does that.  It makes sense to him.   Just not to you.  Or anyone else.  But boy he is convinced and it is as if he needs to reach across the time/space dimensions to reach you.  He can really talk with his hands and his framing gestures are intended to create breakthroughs in your understanding.  Where did he get those glasses?

10. Joan of Accounting/ Defender of the Realm

New customers and, worse troublesome accounts receivable, just make more work for her.  If good accounts don’t make it through her screen, it is just less work. Since the collection of bad debt will inevitably fall to her, she sees her primary job as the prevention of bad accounts that will become work for her later.

11. The Time Traveling Middle Manager

Always ready to visit in your office and spend some time, he is ready with insightful commentary, nay advice, related to everything that HAS BEEN done by you or anyone else.  If you had that advice AND a time machine, you would really have something

12. The Triathlete Production Assistant

She arrives at the Monday morning staff meeting to describe an extreme fitness weekend which included a 48 hour race with running, swimming and cycling.   She got almost no sleep at all.  She looks ok.  And she will be fine for the next couple of hours.  Then she begins to fade.  Completely fade.

13. The Project Manager

It can be dis-spiriting to create fabulous GANTT charts for unfabulous goals. All the start up organization’s dysfunction in a walking, talking person.  He is characterized by his unanswerable questions –“How can the developers lose more than one week in their completion date, when only one week has passed?” or “Couldn’t we have known that people will take off work on Christmas day? or “Why does our one and only Q.A. staff need a month notice when they’re going to test the company’s only product?”


Turnarounds are more cultural than process based

Everyone’s an expert…   Andee Sellmen’s presentation on 7 steps to Successful Turnaround misses a bunch of obvious items and focuses on just a few too many items most of us learned with our lemonade stands – more cash in is better than going out.  Hmmm… seems reasonable, but a turnaround is more about instantiating a new culture than hiring a lead gen consultant/cash flow KING.

From my limited experience, the concept of turnaround assumes they have a product, some revenue and opportunity. So assuming that is the case, you probably need new operational processes across the board, financial controls and different people more so than a lead generation/mgt process.  I’m just saying there may be a more complete way to look at it…

Check out his website – http://www.onesherpa.com/  – I guess it is a hard climb up the profitability market from these 7 tips, but apparently you can get a membership to his site and get clued in how to become cash flow positive in 30 days or whatever.

Community, Tribes and Research: Odd Combo

Deloitte’s study focuses on better understanding the value of community. With a hybrid approach of quantitative and qualitative research they had the following pool of respondents:

  • 400+ companies – Consumer packaged goods, Software, Hospitality, Insurance and just a bunch of other segments
  • Communities ranged from <100 members to more than 1 Hotel chains million members
  • Revenues <$1 million to >$40 billion

So as you can see with this sample the mindset of the responses are more or less all over the place. Tactical to Strategic, Growth to Stagnant, Hopeful to Pragmatist. I’ll take a good all over the place sample over a hyper focused group of people like me anytime.