Copyright 2003, S. Thomas Emerson, Ph.D. All rights reserved. Strategies for Creating Opportunity in an Age of Uncertainty

Copyright 2003, S. Thomas Emerson, Ph.D.All rights reserved.

Strategies for Creating Strategies for Creating Opportunity in an Age of Opportunity in an Age of

UncertaintyUncertainty


“What is the secret of my

success?

I skate to where

the puck is going to be.”

Wayne Gretzky


Great Ideas Great Ideas from the Pastfrom the Past


What Do These Ideas What Do These Ideas Have In Common?Have In Common?

1.1. Each envisioned a change in theEach envisioned a change in theway we do everyday things.way we do everyday things.

2.2. Each saw a means to drive orEach saw a means to drive orto exploit that change.to exploit that change.

3.3. Each entrepreneur “focused likeEach entrepreneur “focused likea laser” to make that change happen.a laser” to make that change happen.

4.4. Each was tactically skilled at execution Each was tactically skilled at execution of the plan.of the plan.

5.5. Each surrounded himself with others with Each surrounded himself with others with complementary skills.complementary skills.


The Key: The ability The Key: The ability to see just beyond to see just beyond

the horizon!the horizon!


1.1. Is the Opportunity Real?Is the Opportunity Real?

2.2. Can you Win?Can you Win?

3.3. Is it Worth It?Is it Worth It?

3 Key Questions:3 Key Questions:


1. Find Needs, Holes or Inefficiencies in the Marketplace.– WalMart– Discount Tire

2. Change Customer Habits– Starbucks– Federal Express

3. Drive or exploit New Technologies– Intel– McCaw Cellular

4. Exploit Changing Environment– MCI– eBay

How do Entrepreneurs How do Entrepreneurs Recognize Opportunity?Recognize Opportunity?


It’s easier when times are flush,

None are Very Dependent None are Very Dependent on the Economic Cycle.on the Economic Cycle.

but good ideas always find funding!


If Funding is Available, Why is it hard to If Funding is Available, Why is it hard to Build a Successful Company?Build a Successful Company?

1.1. The Management The Management Skills Required Skills Required are Broad.are Broad.

2.2. Management Management Requirements Requirements Change Rapidly.Change Rapidly.


ManagementManagement

The skill (or art) of attaining

predetermined objectives

with and through the voluntary

cooperation

and effort of other people.


Growth Companies Need:Growth Companies Need:

A.A. Quality & Diversity of People.Quality & Diversity of People.



B.B. Solid LeadershipSolid Leadership



C.C. SystemsSystems

1.1. Administration.Administration.

2.2. Control.Control.

3.3. Financial management.Financial management.

4.4. Sales.Sales.

5.5. Customer support.Customer support.



D.D. GoalsGoals1.1. Short-term.Short-term.

2.2. Long term.Long term.

3.3. Clearly articulated Clearly articulated and understood.and understood.



E.E. Strategic and Operating PlansStrategic and Operating Plans

1.1. In order to build & sustain growth.In order to build & sustain growth.

2.2. Marketing/Sales.Marketing/Sales.

a)a) Company positioning.Company positioning.

b)b) Product positioning.Product positioning.

c)c) Thorough understanding of competition.Thorough understanding of competition.

3.3. Structured planning cycle.Structured planning cycle.



F.F. Professional advisorsProfessional advisors

1.1. Outside Directors.Outside Directors.

2.2. Legal.Legal.

3.3. Accounting.Accounting.

4.4. Recruitment.Recruitment.

5.5. Public Relations.Public Relations.



G.G. CapitalCapital

1.1. For present growth &For present growth &investment.investment.

2.2. For future growth.For future growth.

3.3. For development of new products/services.For development of new products/services.

4.4. For acquisitions of businessesFor acquisitions of businessesor products.or products.


Growth Companies Need:Growth Companies Need:H.H. ValuesValues

1.1. Ethical dealings.Ethical dealings.2.2. Customer satisfaction.Customer satisfaction.3.3. Consistent value delivery. Consistent value delivery. 4.4. Market leadership.Market leadership.5.5. Innovation.Innovation.6.6. Growth.Growth.7.7. Profitability.Profitability.8.8. Prudent risk taking.Prudent risk taking.9.9. Hard and consistent work.Hard and consistent work.10.10. Internal meritocracy.Internal meritocracy.



I.I. An Exit mechanismAn Exit mechanism..


These Are Substantial HurdlesThese Are Substantial Hurdles• It takes more than money.It takes more than money.• It takes more than good technology.It takes more than good technology.• It takes more than perfect timing.It takes more than perfect timing.

It Takes Near-Perfect Execution!


“We are facing

insurmountable

opportunities !”

Walt Kelley as Pogo

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Copyright 2003, S. Thomas Emerson, Ph.D. All rights reserved. Strategies for Creating Opportunity in an Age of Uncertainty