Posts Tagged ‘expertise’

Hiring Expertise

Thursday, July 4th, 2019

People talk about the word “process” in business (“manufacturing process”, education (“process” learning) and sport “trusting the process”) in such varied ways that it leads to confusion, not clarity when hiring expertise.

Put it simply, process knowledge is the “how to” accomplish something fast, consistently and with a high quality outcome. It is distinct from “content knowledge”, deep sector expertise in how the constituents interact effectively and efficiently.

So if I need to learn how to maximise digital engagement or write smart code for clients, irrespective of the sector and our products and services, I need to find a “process expert”.

If I need to sell a mid-market US financial services business, I need both a “process and content expert”, an understanding of how to attract interest amongst a large pool of potential buyers and convert it into formal offers, and a detailed understanding of the mid-market US financial services ecosystem.

If I need an expert witness on marine insurance contracts in a legal dispute or a RMB financial derivatives banker, I need a “content expert”.

Think of it as a continuum with process and industry knowledge at either ends. In today’s economy, “process knowledge” is more valuable than “content knowledge” because the breadth of applications is wider and creates a larger pool of targets, less at risk from changes in market demand/supply for the expertise. It is also easier to acquire content knowledge (studying, on the job learning) fast than process knowledge (experience, track record).

Presence

Wednesday, July 3rd, 2019

When you invite a prospective client, investor or business partner to meet you, is the following visible:

  • Your meeting location is easily found without staring aimlessly at unmarked building entrances in the street or staring into a backlit screen.
  • Your office reception and the behaviour of those working there is representative of your desired first impression (warmth, professionalism, responsiveness)
  • Your office environment is consistent with who you are today, not overly consumed by your past glories (deal tombstones, portraits of the founders) nor achingly futuristic (think a legal practice in a WeWork building).
  • Your guests are treated like grown up adults, not children awaiting the headmaster. They are directed to the appropriate meeting place, offered common courtesies (drinks, facilities etc.), and the meeting starts on time.
  • Your meetings respect all parties time, objectives and competing priorities.
  • Meeting objectives are discussed, and agreed, at the outset.
  • Appropriate time is given to get acquainted (what’s your story), move onto important issues (relevant expertise), pivot towards areas of obvious and less obvious mutual benefit and agree on “next steps” (next call, next meeting, information shared) and appropriate follow up (accountability, timeline).
  • Both parties feel like they are in the presence of a confident peer, intent on building a trusting relationship with the other (offering immediate and relevant value) rather than merely rushing to get to a deal or to get the other party out of the room before their 10am conference call or executive committee meeting.
  • They are in the company of someone, who is demonstrably a peer of, and of interest to, a diverse and global group of impressive people, irrespective of their title, wealth or age. They have sort, and acquired, life experiences and relationships that leave you wanting to spend more time in their company.
  • They use humour and language intelligently. They don’t resort to crude or inappropriate comments.
  • They avoid “one upmanship”.
  • Although they do drop names, not to bloviate their own importance, but because it is relevant and in keeping with the conversation.
  • Points of agreement or disagreement, victories/defeats and viewpoints or opinions, however, contrarian are substantiated by hard evidence or strong anecdotal information. Not “blow-hards” pontificating or “passive-aggressives” seeking to assert their superiority (intellectual or material wealth).
  • Both parties feel the other, is leaving “informed” on the route ahead, the credibility they confer and with greater value than when they walked into the room. That doesn’t presume they agree on the value but at a minimum, they feel they have had a “fair hearing”, and a genuinely engaged party across the table. Not someone using the other person’s business card to pick their teeth (I have seen that happen!).
  • Basically, someone who you’d leave your company respecting your accomplishments (business and life), the way you work with others (ethics) and your value (results). Not necessarily, someone who they personally like or agree with what they have heard, although that may be a helpful bonus.
  • Follow up commitments are routinely adhered to, and accomodation is made for exceptional matters (illness, a promotion or competing business).
  • Whether there is immediate business or not, the relationship building process and value received doesn’t stop when they leave the building . With their approval, the guest is added to your mailing lists and other non-promotional activities where it is in their self-interest. Including “virtual” and hard copy communication with your firm and awareness of where you might be of greater and relevant benefit to each other’s future (ideal buyers, networking events, media, pro bono promotion activities etc.).

Most businesses think too mechanistically about their presence, physical or virtual, and way too little about the emotional and psychological aspects. How they behave and the attitudes they express, says way more about them than the shiny offices, the skills they teach their employees or the corporate gifts.

If you don’t think there are areas of improvement in your own presence that you can, and must, begin working on today, your competitors do, and they are waiting to pounce.

The Unspoken Truth: Expertise

Friday, March 15th, 2019

If you are telling others you are an “expert” in whatever area of client improvement, would they consistently recognise that through the application of your talent, discipline and perseverance, regardless of the end-result? The unspoken truth for many is they would not. Indeed, your actions create more doubts than before you first met (failure to follow up as agreed, inadequate response time to client’s email/calls, use of poor or weak language, needless analysis to justify your value, duplicative and failure work and so on).

Don’t think I am talking about you? Look at your five most recent assignments, and if you are willing to be intellectually honest, ask if your actions were actually commensurate with your initial client promise.

Don’t fish with business brokers

Friday, February 22nd, 2019

There is a growing cadre of people, who use a multiplicity of titles in multi-family offices, private banks, private investment offices, corporate finance advisory firms, HNW investment platforms that are nothing more than “business brokers”. Run!

To the uninitiated entrepreneur, they are fully regulated, credible and talk about the huge depth and breadth of their advisory network. Their opaque approach is to “rent out” their cookie-cutter services, prepare investor bait, and line up as many unsuspected bodies as possible, as potential buyers or investors in your business in the shortest time. In return, they may request a modest upfront fee alongside a 4-6% success fee (capital raise) or a 2.5 – 4% fee in a business/real asset sale for their services (preparing your investor marketing materials and running a “process”), or purely agree to work on a contingent fee basis.

Ask yourself, how could I build a professional, ethical and reputable advisory business on that basis? The answer is you need “high volume and high client churn”. Cutting bait, and commitment, if not contractually, with a client fast when there is no immediate and serious investor interest. Then, ask how is that in my (entrepreneur’s) best interest in a highly complex and ambiguous situation? If they fail, I am hurt financially but their only loss is time.

If you are still unsure, ask them to show you details of their contractual relationships (“skin in the game”) with other entrepreneurs as clients, investors and intermediaries (mandate, exclusivity periods, revenue sharing). A lot of these brokers are seeking to use you, to build their own investor network, irrespective of your success. They will hurt your brand, your investment credibility and waste extensive time. A lot of these people claim to know or have investor relationships they really don’t have. Ask to speak to not just to those entrepreneurs and investors they have had success with but crucially, those they haven’t.

Mysterious Entrepreneurs

Thursday, February 21st, 2019

Ahead of a meeting with a potential investor, to what extent have you thought about the mystery that lies in your entrepreneurial “past” and the relevant application of it to your investor’s immediate future? It is fine to be translucent, probably unhelpful to be opaque and not necessary, to be transparent.

For example, an investor would “think” they know me well after a google search through my website, blog, newsletters, public speaking, media contributions, podcasts, published articles, company accounts, social media, and perhaps talking to others. What they wouldn’t know, or at least they’d have to dig very deep, is many of the experiences that have shaped my understanding of the complexity and ambiguity in pulling off successful private company investments:

  • Lesson No. 1: In October 1982, “bad losers” make terrible investment partners, and friends or acquaintances, who are “bad losers”, are to be avoided at all cost, especially when you are the smallest kid in the class! Trying my hand at an early entrepreneurial endeavour selling horse racing tips (£5 for a series of “Tiny Tips” three Saturday Nap selections), while a teenager at boarding school, I received zero credit if they won and untold grief, bordering on physical abuse, if they lost.
  • Lesson No.2: In March 1992, most business risk management plans make appropriate allowances for catastrophes (hurricanes, earthquakes, wildfires) and with time businesses can rebound but rarely, do they consider the subtle changes in human behaviour and the grave consequences. That thought occurred to me while part of a deposition team seeking to reconcile the impact of a ponytailed fiftysomething psychotherapist, sitting in front of us, who had “groomed” five of his patients to have sex with each other, as therapy. A Boulder, Co. clinic, 8 partners and a practitioner with a 30-year exemplary record, destroyed in an instant, and my employer, his insurer, forced to payout US$10.7 million bucks.
  • Lesson No.3: In late February, 1999, no amount of money can turn an entrepreneur’s vision into an organisational reality without the requisite judgement and talent. Here I was whisked from a dusty landing strip in the Grenadine island of Canouan, to a meeting with Antonio Saladino, the urbane Swiss-Italian founder of a luxury hotel and resort development (today transformed by the stylish hands of Irish tycoon, Dermot Desmond). Flirtatious blondes, Donald Trump, unexplained investors, gargantuan real estate development and the uprooting of an entire fishing island culture all with Grenadine ministerial approval. Very Ian Fleming. Modelled on Porto Cervo, Saladino’s plans went awry over failed assumptions about buyers of the luxury villas, the prime guest market (wealthy North Americans, not the bejewelled Europeans he spoke of), and how to mitigate the impact of commercial airlines suspending scheduled flights (no meaningful plan B or C).

There is a hundreds of other rich and humorous stories I can talk to investors about, many not for publication. All help to shape my skills, behaviours and expertise. What could you use to create a seductive rapport with your ideal investor?

Entrepreneurial Wisdom

Wednesday, November 21st, 2018

Would you seek to cross the Atlantic without a substantial support system? Might bet is you’d loudly shout “no”. Yet there are daily, entrepreneurs, some having early success, who insist on taking even more perilous risks with their own business ventures and won’t take advice from anyone. They intuitively know better. That is fine until the seas get so rough that faced with imminent capsize, they scream “help”. Why be so churlish? Get the best qualified help you can afford, pay them on equitable terms and that them as a partner in your future success. 

Uncommon Summer Work Experience

Monday, July 30th, 2018

If you have a son or daughter undertaking work experience or an internship this Summer , “doing good” might be your child’s droll response but that isn’t going to make them an object of interest to anyone in a future business setting. Ask them

  1. Which of these “how to’s” below they have acquired and successfully applied.
  2. How that has demonstrably helped their immediate boss, the business they have worked for or their clients (results and value).
  3. Ask them to pick 5 examples, and in a few powerful sentences, string that together in a brief conversation starter.

“I spent the Summer working for XX at YYY company, where I dramatically improved my understanding of [list the “how to” knowledge]. In return, my boss/my employer/their clients was able to accomplish the following [list the problems solved, the improvements made or the better client experience] with my help.

We’ve agreed to stay in touch and I am proposing to update them [in person, by phone or in writing] on DD/MM/YY about my progress and ideas to help their business growth.”

Don’t forget to encourage them to add “volume” with the use of powerful adjectives before each benefit for the employer. It is never too early to make a strong first impression.

Yet far too many Parents and kids, lean on family friends and colleagues for favours in securing employment but they overlook the actual learning and development success, the importance of disciplined follow up, and reciprocity, in eliciting repeat work and referral opportunities.  Perhaps that says more about the Parents sloth than that of their children.

How To’s Checklist

  • Networking
  • Decision-Making
  • Time Management
  • Team Building
  • Customer Service
  • Speaking Skills
  • Motivation
  • Humour
  • Ethics
  • Negotiating
  • Problem Solving
  • Planning
  • Writing Skills
  • Technology
  • Sales Skills
  • Use of Media
  • Futurism
  • Health + Wellness
  • Building self-esteem
  • Priority Setting
  • Image Building
  • Managing Change
  • Listening Skills
  • Creativity
  • Productivity
  • Leadership
  • Diverse experiences
  • Career Management
  • Innovation
  • Empowerment
  • Relationship Building
  • Rewarding Behaviour
  • Add others to your list

© James Berkeley 2018. All Rights Reserved.

3 Deadly Sins First-Time Venture Capital Fund Managers Rarely Avoid

Wednesday, April 18th, 2018

Why do so many first-time venture capital fund managers, who have been a success in their past, cease to act like a success when raising their first fund? Undoubtedly, the fundraising journey is long, on average somewhere between 15 to 24 months for funds under $150 million from firing the gun until the final close. Nowhere is that harder for General Partners, who are new to the investment game and of limited interest to institutional money. Over the past 10 months, I have had first-hand experiences with 6 fund managers in US and Europe and talked to a multitude of placement agents, who have shared their experiences from over 120 such fundraises. Three deadly sins:

  1. General Partners underestimate the three pools of personal capital (cash, credit and investment) that they need to successfully arrive at their desired destination and thrive. They over invest in non-essentials (expensive office space, hiring employees), at the outset, and under invest in external expertise (fundraising, skills development) when they most need it, typically, in the tough grind that follows some immediate success  securing a cornerstone investor.
  2. General Partners underestimate the importance of maintaining a high level of self-worth. They allow a “poverty mindset” to quickly become their default position. They jump on the first offer of committed capital driven by a fear of failure, they beg for favours (introductions, expertise) on terms they’d never accept and they fail to act like a peer in front of investors (constantly “pitching” rather than investing appropriate time building a peer-level trusting relationship).
  3. General Partners underestimate the return on their time invested in accomplishing various activities along the “journey”. They spend excessive amounts of time “fine-tuning” their methodology at the expense of articulating the results and value the potential limited partner walks away with. They allow their intellectual curiosity and ego, to lead them into targeting investors, who are highly unlikely to commit, in their desired timeframe. Why? They consciously ignore who they are today (an ambitious first-time manager with an investment thesis yet to be proven, and zero successful exits) and they are overly pre-occupied with who they imagine themselves to be in future for ego reasons (the next Fred Wilson, Bill Gurley, Josh Kopelman).

The final thought: You might be a great investor but first, can you actually create and build a successful business (skills, behaviours, expertise)? I am not talking about a division of a large VC firm, a global bank, a management consulting firm or something you did on the side in university. I am talking about a boutique asset management business.  That is the first question your highest potential limited partners are trying to convince themselves about.

© James Berkeley 2018. All Rights Reserved.

Snow Joke

Monday, February 5th, 2018

Climbing out of a snow drift back onto a piste for a first-time skier is hard if you have never done it before, “raising money” from investors is equally hard for a first-time entrepreneur or private equity manager if you have never done it before. I have helped tens of people with both challenges. Yet I run into smart people weekly, who have been a success in the past but refuse to act today like a success when it comes to investing in their own development.

The common factors for success are do you possess the requisite combination of skills, behaviours and expertise to accomplish your goal (climbing a mountain or raising a fund)? If not, can you find someone, who has successfully accomplished what you are seeking to do, and possesses the skills and volition in the real world to help translate and transfer their success to you (qualified expert)? If you can, hire them. If you cannot or even refuse, you are seeing the problem. The pathway is either excessively risky or ambiguous for even experienced individuals or your own behaviour is contributing to your difficulties. Which is it?

© James Berkeley 2018. All Rights Reserved.

New Balls, Please

Wednesday, July 12th, 2017

Today’s Wimbledon: strawberries and cream. White tennis gear. Polite ticket queues. Live streaming. Rafa, Roger, Andy, Novak, Serena and co. The sliding roof.

Days of old: more strawberries and cream. Wooden rackets. Bjorn, Jimmy, BigMac, Pete, Andre, Rod, BillyJean, Monika, Martina, Steffi. Intermittent rain delays. Images that are indelibly linked in our minds to a time and place. Yet a (sporting) institution and participants that has successfully embraced reinvention.

When you look at your own personal and business reinvention, what are the strongest images in the minds of your key constituents (clients, investors, employees, business partners and so forth)? Does it say more about your “past” value, your “present” value or your “future” value? Perception is reality. What are you doing regularly to adjust others perception of you? (new interests, new relationships, new ideas, new surroundings, new images etc.) Is it bold enough for your current and future circumstances? (changes in technology, competition, market needs, client experience, and so forth)

Why wait for the umpire’s cry of “new balls, please”, when you can better control your own destiny?

© James Berkeley 2017.