Entrepreneural Gold Medals

I had the pleasure of being at the 2010 Olympics for the Gold Medal action of the final week. We witnessed first hand the power of our Hockey, Curling, Freestyle Skiing and Sliding teams in serious competitive action. What a complete and fulfilling experience. This is something that needs to be added to any "Bucket List".

As the Entrepreneur's Entrepreneur, I am always thinking about how we can "Accelerate the Path to Commercialization" for Ontario's technology companies. As I watched the teams progress, I wondered about the profiles and journey of our medalists. Are there any key learning from their profile that could be applied to help support our early stage Companies?

With the support Shantanu our co-op student at the RIC Centre (www.riccentre.com), we pulled the profiles of our Gold Medal winners and started to do some analysis.

Shantanu researched the early Gold Medalists including:
Maelle Ricker (Snowboard Cross) - a story about attending her first Olympics in Nagano in 1998, missing the Salt Lake games due to injury, having 8 knee surgery, placing 4th in Turin and subsequently finishing up the year on the top of World Cup standings just prior to Vancouver.
Christine Nesbitt (Speed Skating) - placing a disappointing 14th at Turin in her winter Olympics debut Christine vowed to remember what "losing was all about". She turned up her training and unlike many Athletes decided not to "save" herself for the Olympics - "fighting" and pushing her "mental toughness" to a new level.
Jon Montgomery (Skeleton) - a flamboyant competitor who was a crowd favourite in Whistler Village as he auctioned off a half pitcher of "golden beer". Jon was quoted as saying: "I'd give my right eye to be able to represent Canada at something. I don't really care what it is — tiddlywinks, volleyball. As long as it's something."
Alexandre Bilodeau (Moguls) - calls his older brother -Frederic his inspiration. Alexandre burst onto the World Cup scene as a wide-eyed 18-year-old, capturing FIS rookie-of-the-year honours in 2005-06. He felt "stung" by an 11th-place finish at the Torino Olympics in 2006.

Shantanu also analysed the backgrounds of the early Silver medalists including Kristina Groves (Speed Skating), Marianne St-Gelais (Speed Skating), Mike Robertson (Snowboard Cross) and Jennifer Heil (Moguls). By the middle of the week the pattern was pretty clear and the Canadian Medals were starting to show up on the podium with significant regularity. Curling and Hockey were also just around the corner!

The patterns that emerged were very powerful and have a significant parallel for our early stage Entrepreneurs. They include:

1. Determination to Win from an early age. Many say that Entrepreneurs are born with their desire to Build, Create and Innovate.
2. Love for their sport. Without Passion in your idea, venture or team you will not succeed.
3. Inspiration from Coaches and Family. Family and Friends, Boards of Advisers and Board of Directors are important tools in accelerating venture success.
4. Disappointments at earlier events and a thirst to prove themselves in Canada. A Key trait of any Entrepreneur is their resolve to achieve in spite of the odds.

Congratulations to all of our Athletics at this year's Vancouver Olympics. I know that you will be an inspiration to many of our Ontario based companies who are driving toward the Commercialization Finish Line.

Frigid Cold Calling

We can’t but admire Mother Nature and this Great Canadian Weather. As the weather turns cold – many of us are stopped in our tracks. The same” stopped cold” phenomena exists for early stage companies who are faced with making those dreaded first time calls to prospects and potential partners.
The Frigid Cold Call is the most dreaded part of any sales or business development process. Understanding the dynamics and tuning your approach can be one of the more satisfying experiences for a Senior Executive. With a number of start-up and turn-around companies to my credit, I thought it was timely to provide some “snowshoe tracks” to guide you through the snow this winter. I break the process down into three Blocks of Ice.

“It’s Cold Outside”
In this block, you know that making these calls will be paramount to the long term success of your company. You have been sitting on the sofa by the warmth of the fire thinking about going outside and physically exerting yourself on the trail. Like many examples in life you know it will feel good after you have completed the task. Overcome the resistance and get on with it! Your first steps include:
Build your Lists – Whether you are at the Prospect or Suspect stage you will want to create a list for you potential clients and one for your strategic partners.
Research your Targets – It’s a good idea to know as much as you can about your Prospects. Warm introductions, web research and industry publications can contribute key content.
Set your Call Objective – It will not be feasible to close a sale or partnership on the first call. There is some industry data that suggests that it takes up to 5 calls / visits to actually close a new sale. Think about your situation and set your objective bar at a high and realistic level ("The objective of this call will be to fully qualify a Suspect into a Prospect and / or obtain a Face to Face meeting.")
Story Board your Pitch – Prepare a crisp 30 second story that describes who you are, what you have and why you would be compelling to meet with. The Pitch should not be completely scripted or read verbatim on the call. I suggest having a block diagram with a couple bullet phrases in each block. Anticipate some key questions about your company and what makes you different. Think about some open ended questions that you would like to deliver to enable an ongoing engagement throughout the call.

"It's Snowing Really Hard"
In this block you have completed all the necessary preparation and you are ready to start making the calls. You have moved off the sofa and have your hat, scarf and mitts adjusted appropriately. With snowshoes in hand you venture into the cold crisp air. Tips to avoid "frostbite" include:
Block your Calendar – Think about the time of day to make your calls. I am a morning person and I like to do them when I am fresh. Many executives arrive early to get some work done before the staff arrives. Your hit ratio may be enhanced at this time.
Polish your Manners / Adjust your Attitude– Dave Kurlan -author of Baseline Selling suggests that the formula for a successful call is 50% phone manner (Warmth, Sincerity, Pitch, Speed, Pace and Volume), 32% Attitude (I know I can do this) and 16% Script (Message content and call to action). Remember that many executive assistants are there to manage the executive’s time – ensure that you are treating all live interactions with the highest level of respect if your call is intercepted. One UK based blog suggests that if you "smile while you dial" you reduce the tension in your voice. Try it for yourself - it really works.
Check Your GPS Positioning – In real time, assess where you are in the process of achieving your end objective. Make necessary course corrections and utilize your know how about your prospect and your value proposition to converge on the close. "If not you, can you suggestion a more appropriate contact? Can I use your name in my next conversation?"

“Pushing Through the Snow Drifts”
The hard work doesn’t stop after you have completed the call. You need to clean off the ice from your snowshoes and place you mitts in a place where they can dry out.
Follow Through / Follow Through – As the conversation unfolds, highlight the appropriate next steps. Be sure to summarize the actions before you hang up. If you make commitments to deliver something by a certain time frame – ensure you do.
You Can’t Remember It All – Invest in some tracking software that helps you remember the call, its associated action items and any other relevant facts about the Prospect that may be relevant down the road (plays golf, has 2 kids, hates pushy sales executives etc.) Many companies start with Excel and graduate to Salesforce, Microsoft CRM, Goldmine and ACT! to name a few of the available options.
Bounce Back Quickly – All of your calls will not go as planned. The key will be to recognize that it is not personal and that you need to move on. When pushed into a pile of deep stuff, you need pop out quickly or suffer the cold wet consequences.

It's Time to take that Breath of Brisk Air and get into a serious Canadian Snowfall. See you in the lodge.

Sound Bites for Success

In a recent Blog, I wrote about the key principles of the Investor Pitch. Building a deck is one thing – Delivering the message is clearly another. At the end of last year I had the pleasure of reconnecting with an old colleague, David Doze of Pilot PMR. David’s company has helped shaped a number of key messages for my companies over the past decade. With a little liquid encouragement, I convinced him to help package a program for some my early stage clients – "Sound Bites for Success".

In our room of 12 CEO's, David lamented that “The world does not need More Information, More Fine Print or More Arguments – Leaders need to take the complex and make it digestible.”

His three guiding principles of messaging:
Relevance – Do you have the right message to “Cut Through the Clutter”?
Reputation – Do you have the credibility to pull it off with conviction?
Reach - How do you get the message out to the audience who has a different view of the world than you?

David suggests the following road map to building these key messages:

Understand Your Audience and their Orientation – This seems obvious but you would be surprised how often it is overlooked. I recently observed a CEO present her story to a very sophisticated prospect in charge of a large corporate empire. Our CEO unfortunately had limited understanding of the organization that they were pitching to. It was too bad as the meeting could have had a more fruitful set of action items had our CEO been better prepared.

Frame your message – A Frame provides a context and helps to ensure that the message gets embedded into our memory for future recall. This lasting message helps you stand out in a crowd. I observed a Investor pitch last quarter where the CEO had a half hour before the decision maker needed to leave the meeting. The CEO and potential investor had some historical linkage to some common industry leaders. Unfortunately, the frame on the session was to introduce the company to the potential Investor - the digression into "who do you know" became a distraction and blurred the main purpose of the meeting. The event timed out without the key messages in the frame being delivered.

Be Authentic and make Credible Statements - One of the easiest ways to do this is to present claims that are defensible with Proof. We observed a company pitch their story to some angels last month. The claims about the product were all encompassing-it sliced, it diced and made coffee too! The CEO was labeled as a "promoter" who was blowing smoke-the claims were not reasonable. This clearly was not the lasting message our CEO wished to convey.

Make the Intangible Real – An Inventor is clearly proud of the complexity of their technology and its ability to serve many practical applications. I have observed too many presentations where the audiences' eyes glaze over with the level of detail and its applicability to this or that sector. Entrepreneurs need to focus on the highest margin opportunity and simplify what the product or service can actually do in plain and practical language.

Leave a Lasting Picture – You will want your audience to be talking about your company long after you have left the stage. At our Sound Bite competition we went around the room and asked the question: "What did you remember most?" It was surprising what key messages were clearly lost in the fog.

Make messaging part of your priority for your next presentation. Make sure that your Sound Bites truly leave a mark.

99 Days and Counting

A friend of mine recently contacted me for some assistance. She was recently promoted to the top of her company and would be assuming the role of President and CEO in a couple of weeks. "Did I have any advice?"


"You Bet! - you will need to build that 99 Day Plan reflecting your first quarter on the job. This is one of the most valuable things that you can do to maximize the start of your new role." 99 Day Plans are based on the theory that in the first ninety days of a new assignment, an individual will be consuming more value from the organization then they are able to contribute. My two favourite books on the topic "The First 90 Days" (Watkins) and "You're In Charge Now What" (Neff & Citrin). Some of the key principals are the following.

Turnarounds, Start-ups and New Promotions all pose a unique opportunity for Leaders to come "out of the gate" in full stride. Although all three situations require different skills and approaches, the underlying theme is still the same - There are four fundamental phases of building and executing the 99 day plan - In support of my Energy and Smart Grid clients I have affectionately named them Inspection, Pre-Wiring, Lights On and Charging Forward.


In the Inspection phase you are in an early Due Diligence state. You may be contemplating a new start-up venture, have your name in for a promotion or trying to figure out how to accelerate or turn around an existing business. Your objectives in this phase are to spend a couple of days utilizing the information that you have at hand to determine your interest level in jumping into the assignment. You will utilize "generally available" materials (websites, public information, local knowledge) to help formulate your interest and determine your ability to be able to deliver the results. You may or may not have access to the key Stakeholders (Shareholders, Employees, Senior Management) at this point in the process. This phase may consume up to 5 days in a 99 Day Plan.

In Pre-Wiring, you have now determined that more detailed visibility is required on the opportunity. Objectives in this phase include determining the critical priorities, risks and opportunities and a complete alignment of all stakeholder interests. For an individual being recruited for a job, your visibility will come through the interview process and access to the key stakeholders in the process. It is during this phase that you will formulate your ideas on what needs to get done, negotiate your start day and draft a 90 day plan with specific deliverables every 30 days. Specific emphasis should be put on identifying the "Low Hanging Fruit" - things that your individual skills and talents can add early value to an organization including changes to process, people and customer interaction. I also endorse drafting a Multi-point Objective Statement that addresses the phrase: "By the end of 90 days I would expect that......"

The Lights On phase will start the first day of your new assignment. You will need to ensure that you have specific action plans for what you plan on saying and doing with the Senior Leadership team, the Employees at large, Customers, Shareholders and other Stakeholders. I suggest maintaining a journal of all key interactions, observations and things that were "positively or negatively surprising". At the end of each week you are "tuning" your plan to reflect the things that you have discovered. Early feedback mechanisms for Stakeholder communication should also be critical components of your 99 Day Plan.

Charging Forward reflects the key execution phase of the plan. Utilizing your journal, reflect on your daily and weekly notes. Ensure that you are executing around key interactions with employees, customers, shareholder and key influencers. Be prepared to dynamically modify your plan to reflect any surprises that you have uncovered along the way. I also endorse the concept of creating a rolling 90 plan that reflects the execution road map and supports the last phase of the plan which I call Burning Efficiently Bright.

For my newly minted CEO I also added a couple other items of wisdom to help support her process. These include:

1. Mental State of Mind: From Pre-Wiring to Lights On you will need to mentally prepare for the new assignment - You are the new boss and the individual charged to fix the past sins - get on with it.
2. The Cows Have left the Barn: From the Lights On phase, you are In Charge. The key stakeholders will be looking to you for answers, opinion and direction- anticipate the questions.
3. Plans are "Merely" Forecasts: Change is the only guaranteed constant. Build the Plan, Execute the Plan -but be prepared to modify the Plan as necessary.
4. Listen Lots / Communicate Often: In your early days on the job you will be given access to individuals and situations that may not have been available in your Inspection and Pre-Wiring states. Listen, Question and Probe.
5. Emotional Fortitude: Regardless of your prospective (Start-up, Turn-Around, New Position), your plan will involve a series of changes to People and Process. Do the necessary homework and remember why you took the job in the first place. Dig Deep and do the right things in a timely manner.

At what stage are you in your new assignment cycle. Time to start the clock -TIC TOC - 99 Days will fly by quickly.

Mentors - Filling in the Experience Gaps

Fresh out of school I started my career at one of the icons of Canadian business - Bell Canada. Included in the icon group were other national brands such as IBM, Xerox, Petro Canada and Imperial Oil. At the time the world was still thinking about starting and finishing your working life with the same company. These organizations were legendary for Leadership Training, Skills Development and Coaching programs that included "a new job every 6 months".


On my first day on the job, I was given a team of 12 individuals who I had to coach, motivate and manage. To support my efforts, I was sent to leadership training courses every 6 months to fill in the gaps. In hindsight, I now realize how fortunate I was to be part of a New Graduate Training program - my education and practical on the job training has been part of my fabric ever since.


In today's world a lot has changed. Clearly, the concept of "employment for life" has a new time horizon and companies are spending less on their graduate programs. Company training and education services have also been severely cut back. Gone are the days where companies would hire you for your ability to learn and proceed to train you to fill in the gaps. Recruitment today is looking for the individuals who can do the job with their existing tool sets and hit the ground running.


Working with our new breed of Entrepreneurs has a different twist. A full 50% of entrepreneurs fall between the ages of 19 and 30. How and where do these individuals get their training and skills development in today's environment?


In a recent study conducted by OI Partners (www.oipartners.net) a number of key items were identified that were consistently lead to the failure of newly minted leaders. Five of these factors include:

1. Leadership & Delegation - the ability to get results through others.



2. Motivation - the ability to rally the troops to higher levels.



3. Communication - the ability to provide clear and concise messages.



4. Personal Skills - the ability to relate on an interpersonal level.



5. Recognition - the wiliness to celebrate the successes no matter how small.

When you scan this list you conclude these factors can be "theoretically" studied, but the realty is that they have to be "experienced". So where do Entrepreneurs get the experience to fill the gap?

In a previous blog,we chatted about the importance of Advisory Boards and their impact on improving company success. These boards are helpful to gain traction in the marketplace - but today's young Entrepreneurs will need more. To supplement the experience & training gaps, a strong prescription of Mentorship from a seasoned "been there done it" Coach is clearly warranted.

Coaches will come in many forms and range from a "certified" professional, to a relative or simply a trusted friend. Often coaches are joined together in business forums, where the Entrepreneur can open up amongst a group of peers in a "risk free" environment. Regardless of the background or format, the coach will need to add value by identifying and filling critical experience gaps. Rounding out the theoretical with practical experience, will clearly enhance the probability of commercial success.

Increasing the Odds of Success

A fellow blogger recently pointed me to a study done by a couple of Harvard business professors (Gompers and Lerner) titled “Performance Persistence in Entrepreneurship”. This study looked at the track record of first and second time Entrepreneurs creating a successful enterprise. (Success was defined as taking the start-up entity public.) The results of the study were chilling to say the least.

They found that first time Entrepreneurs only had a 22% chance of success and for the 78% who tried it again the Entrepreneur was only 23 % successful in their next venture. They also noted that to a certain degree “success breeds success” - the successful ones who tried a second venture were 34% likely to succeed.

This Harvard research and a companion study done by CIBC World Markets in 2005 suggested that successful ventures had a number of consistent characteristics that made them over achieve. These traits included: a) High Level of Education (2 of 3 Canadian Entrepreneurs have post secondary education), b) Extensive Use of Advisers (Service Professionals, Board Advisers, Board of Directors), c) Outsourcing Strategies (Companies focused on core competencies and outsourced other non-core functions), d) Technology Enablement (Companies utilized Web presence, CRM software to enhance and support customer interactions) and e) Focus on US and International Markets (Canada is only the starting point).

This is where the Ontario Commercialization Network (OCN) comes into play. Eight of the 13 centres have been funded with an Entrepreneur In Residence (EIR). These individuals are seasoned executives who have build, sold and turned around a number of ventures in their careers. The role is to “accelerate the path to commercialization” for these early stage companies.

EIR’s in the OCN all have a unique and individual style in advising their clients on "creating the organization's traction". Supported by Provincial, Federal and Private funds, EIR's across the province rely on a core set of resources to support their clients. These include 1) Education and Reference material, 2) Extensive network of contacts and practical experience, 3) Market Research, 4) Executive Coaching and Mentoring, 6) Assistance in building a Compelling & Focused story.

Entrepreneurs are the key to Ontario’s innovation agenda and are encouraged to sign up with the Commercialization centre in their region. We need to do all we can to increase their odds of "Stunning Success".

M&M's - Paramount for Success

M&M's are critical to a company's success and I don't mean the plain or peanut kind! Measurement & Management Dashboards are important tools for building sustainable success.

A couple of months agoTerry Matthews - a great Canadian icon was speaking at a MaRS event about his success model for start-up organizations. Having started over 80 successful organizations in the past 25 years, he has a record of credibility. Terry explained that one of the keys was to have each of his organizations' create a monthly report that measured a number of indicators in the Rear View mirror (We Accomplished this, We achieved that, We we unsuccessful with this.) and out of the Front Windshield (We plan on completing this, We are Scheduled to achieve that). These monthly Dashboard reports were prepared by the CEO as if the company were publicly traded on the TSX - a great standard of Governance.

For my clients at the RIC-Centre I am also encouraging the drafting of these telltale M&M Dashboards that cover the important facets of their start-up. The CFO and CEO need to ingrain that culture of measuring and taking management action in their early evolution as an organization. Measurements should cover the basics of financial reporting but also drill down a number of layers on key indicators such as Customer Acquisition, Product Development, Human Resourcing, Regulatory Approval, Channel Development etc. The clarity of the historic indicators and forward looking statements will do wonders for the focus and accomplishment of these early stage organizations.

Many of my Followers are also curious to hear about how the High Handicapper is making out. After a couple more lessons, hours on the practice tee, a loud shirt and 15 rounds later - there is considerable improvement. "Jimmy the Genius" continues to work his magic - the hard work however is clearly in my hands. Following my own entrepreneurial advice I have implemented my own M&M Dashboard process for my journey to a lower handicap.

On the top part of the card I write down the three things that Jimmy has me working on (grip, alignment, aim) for the current week. I also articulate what I hope to Accomplish - 2 less lost balls, gross stroke reduction of 6, 5 less putts for example. This sets the tone and provides a constant reminder of what I am trying to accomplish each time I make an entry onto the card.

In the middle section I create a series of drill down measurements that allow me to manage each part of my trek down the course. Off the tee I note if my ball went where I had intended it to go with a simple check mark. If if doesn't go where it should have, I add additional indicators - did it go Left (L), Right (R)or Duff (D)? For Left and Right I also note if it went Long (LO) or Short (S). For Lost balls I count the number and location -Woods (Wo), Water (Wa) or those nagging ones lost on the Fairway (F). (I decided not to measure Deep Woods or the number of Skips across the pond!) For Putts, I count the Total including the number less than 3 feet and greater than 20 feet. At the end of each hole in addition to my Gross Score I have some interesting statistics to help me M&M at the next tee.

By the way, don't ask me to keep your score as well as mine - There is no room on the card and my M&M Dashboard is all consuming to my focus and Paramount to my Success.

Somtimes you have to go Back to the Drawing Board

One of the greatest things about Entrepreneurs is that they have the persistence to keep trying. We all need to draw inspiration from their spirit.

Having exhausted a host of innovative and creative methodologies to achieve Large Success or Smaller Successes, sometimes the current path will simply not achieve the expected results. If this is the case then it's clearly time go back to the Drawing Board to bring in some fresh thinking and leverage the network of trusted advisers.

In my own personal adventure I am struggling to move my handicap. As a proclaimed Fix-it guy having turned around a number of Technology businesses, I have always viewed that I could fix my game all by myself. I have subscribed to the Books, the Gizmo's, the Over-correction, the Under correction, new clubs, new balls and the golf Channel. I have even listened to my good friend "Lar" who suggested "that's all in way your dress for the game!" I have consistently resisted engaging the Pro as I feared that the re-building would be so disruptive to the pathetic game I currently process. Having struggled through a horrible game on the weekend I came to the conclusion that it's time to go back to the Drawing Board.

We have written in previous blogs about the importance of Trusted Advisers and Board Members as important tools in an Entrepreneur's available network. The same holds true for service providers including legal, tax, accounting & strategic marketing professionals. A couple of my clients are struggling with getting that first customer to say yes. Sometimes it may the simplest of things that will make all the difference so we go through analytic process of deciding what's working, what's not and try to identify who or what will it take to make the customer say yes. Drafting a New Game Plan leveraging on what we know comes out of this process.

For those following the High Handicapper, the Drawing Board indicated that I need to bring in the professional help. I engaged Jim (CPGA guy) to work with me on the range in the pouring rain. (Never really rains on the course). After an hour of work, we identified a simple three things that could consistently straighten out the shots and reduce that score. Applying the advice yesterday was a Miracle! "Jimmy the Genius" has lived up to his reputation. Let's see if I can apply the concepts to a process of continuous improvement.

Just to be safe however I also went out and got that new golf shirt consistent with my colour palette. I wouldn't want to stop receiving that "free advice" from "Lar".

Is Success Spelt with a Large S or Small s?

In our quest to commercialize Ontario's newest Innovative companies, a number of us are struggling with how to measure their progress and the definition of Ultimate Success. Many of my colleagues are big proponents of "the only measure is total number of Jobs Created" others are suggesting that "Revenue, Customers Acquired or Dollars of Investment Attracted" are more applicable indicators of achieving that Home Run.

For my clients, I encourage them to "Think Huge" and try to define their Home Run around their Vision statement. This forces them to become big thinkers and set a Large S target cannot be easily achieved by fixing one thing or completing a couple sub-tasks.

Sharon, an intern at the RIC-Centre did a little research around the Blue Jays this year. She notes that the team has had 3790 At Bats achieving 1020 hits. Of these hits, there have been 649 singles, 240 doubles, 7 triples and 124 Home Runs. The Large S target of hitting that Home Run has only occurred 3% of the times At Bat. Given this low probability, I am sure that the players in the batter box are defining a series of Small s targets like getting to first, not striking out, advancing the runner, not swinging at the the silly sinker etc.

Early stage companies are encouraged to work out a series of Small s targets in all facets of their business. These include completing the necessary business planning, building that unique set of features and services, populating a winning team, securing the first Beta customer, locking in critical financing and driving toward that first quarter of profitability to name a few. Small s successes will be easier to demonstrate short term wins and be an inspirational lift to the Entrepreneural teams. The target of hitting the ball over the Green Monster will come in its own time.

For me Thinking Huge this summer is to drive my handicap under 20. (For many of you this would simply be a Base Hit! You have no idea how big this challenge is for my game.) Now that I have posted this blog, I can head out to the first tee and try to avoid driling it into the woods......

I will celebrate my Small s accomplishments on the patio of the 19th - anyone care to join me?

Those Pesky Independent Directors

A young CEO recently asked for some advice. She had just signed off on a third party investment which came with the requirement to add an Independent Board member to the team. The CEO commented that "The dynamics and complexity of the Boardroom has changed in a number of significant ways. I need some help in understanding what is unfolding." The key changes as she described them included:

1) "The new Independent member has asked for a lot of background material about the company, our shareholders, suppliers, accounts receivable, contracts, payables, risks, issues and opportunities, personnel files, incentive plans - the list was long and the more I provided the more information I was requested to deliver." I respond -it is very important that a new member of the board come up to speed as quickly as possible. Much of the material that you have used in your recent due diligence will provide the Director with the necessary background for an effective Board Orientation.

2) Prior to the meeting, a Detailed Agenda was requested that included a start, stop and time allocation for each agenda item. In addition, we were asked to categorize the agenda into a) Standing Matters (CEO Report, Financial Update, Pipeline Review), b) Committee Reports: (Finance, Human Resources, Governance & Risk) c) New Items: (For Information Only or Decision Required), d) In Camera session (excludes CEO). I respond - this is just common sense. Directors are busy and organized professionals. An appropriate well constituted meeting agenda is critical to ensure meeting efficiency. The Chair of course will need to be strong to ensure that the meeting plan stays on track. An In Camera session without management is a must.

3) A couple days prior to the meeting a detailed Board Package of supporting materials was sent out to all members. Our new board member was looking for at least 5 days with the supporting materials. Twenty four hours in advance of the meeting, the final materials were emailed or faxed - Our new member was happy that the changes to the final package were small. I respond - Directors are appointed to help enhance management's decision making. They will need to see a sufficient level of detail to understand the options and recommendations made by management. Given schedules and commitments 5 days is the minimum period of time to allow the member to read and absorb the materials. Often after the Board Package goes out there are critical updates that need to get sent - these updates should be sent no later then 24 hours in advance of the meeting and should not form the core of the agenda materials.

4) The meeting itself also changed quite dramatically. With all the materials sent out in advance everyone on the Board had a chance to understand where we were at. The board meeting dynamics now changed to a barrage of questions about the assumptions, the trends and associated conclusions related to the materials. I respond - Asking questions helps with the clarity and provides a real time mechanism to test the quality and validity of management recommendations. It is often stated that there are no "wrong questions" in the board meeting. Directors who don't understand a particular point will most certainly speak up.

The Board of Directors are appointed by the Shareholders and their purpose is to "Enhance Executive Decision Making". They are bound by a Duty of Loyalty that demands that they act in the best interests of the Stakeholders. Stakeholders include not only shareholders but customers, suppliers, NGO's, employees, government agencies and others with a "stake" in the companies business. Their Duty of Care is to act in a matter that is consistent with what a reasonable person would do when presented with a similar set of facts.

Directors perform their duties by a) demanding a high calibre Board Package that contains the right amount of detail and is delivered in well in advance of the meeting, b) asking lots of questions to improve clarity and test what if scenarios and c) digging into their wide and deep leadership expertise to help guide management.

The CEO who asked for the assistance left our session with a significantly enlightened view of that Pesky Independent Board member. Does it now make sense to you?

Bright & Not Blurry Eyed Business Plans

I finally broke down over the weekend and attacked the stack of 5 Business Plans that I promised to read and comment on. They ranged in length from 15 to 80 pages and covered multiple industries and segments. My mind was whirling as I completed the last "...in conclusion" section. As I compared and contrasted the individual documents I was inspired to write a couple tips to help those Entrepreneurs with their next versions.


a) Capture My Attention Quickly - Perhaps its starts with your overarching vision, but find a clever way establishing and leading our interest in your product or service quickly.

b) Make it Easy to Read and Compelling to Turn the Pages - Think about that spy novel that drives you aborb the content and turn the pages as the plot unfolds.

c) Follow Business Plan Protocol - There are many protocols & templates out there and they all lead the reader through a time tested process. All of the heading and topics will need to be addressed so there are no short-cuts to be taken. One client suggested that since their product was so unique they had no competitors and "never would' - therefore they left the section completely out!

d) Cadence your Content with Appropriate Emphasis - A colleague of mine at MaRS - Andy Haigh (ahaigh@marsdd.com) has developed a 25 page format for the business plan. His rationale is simple - create something that the reader can digest in a single sitting - lean towards 25 pages rather then 60. The flow goes something like:

• Executive Summary (2-3 pages) - Company description, Value Proposition, Key Highlights
• Introduction (2-3 pages) - What is the problem that the company is trying to solve?
• Product & Technology (2-4 pages) - How does your technology solve the problem?
• Market Size (2-4 pages) - Start with the big numbers and narrow it down to your market.
• Go to Market Strategy (2-3 pages) - How do you plan on attacking the marketplace?
• Competition (2-3 pages) - How are you "better, faster, cheaper" ?
• Management (2 pages) - Do you have the team to make it all come together?
• Financial Summary (2-3 pages) - Financial Model, Investment Opportunity, Cash Flows.
• Strong Summary (1 page) - Re-iterate Key Points

e) Visualize at Every Opportunity - 25 pages of solid text will not work for your reader. Since a picture tells a 100o words - the photogragher or graphics designer are the world's most effective writers. Use charts, graphs, pictures, white space and section headings to help illustrate the points and focus the reader.

f) Proof Points - Do you have the customers, beta trials, strategic partnerships and trending financials to clearly demonstrate that you have it right?

g) Strong Finish - Having lead the reader through a compelling 25 page journey, re-iterate the key points to leave them with a lasting impresssion.

I have tried to capture in a few words what is clearly a significant art form. Have Andy and I missed anything? We look forward to your feedback.