21st Century thinking, there is no box!

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In today’s increasingly difficult economy with uncertainty around political and currency futures, is it any wonder that depression is expected to impose the second biggest health burden globally by 2020?

I have always believed that in order to predict the future it is up to us to create the future we choose and how we want to be in our outlook.  By empowering ourselves and being proactive in our approach to our work life-balance it is really down to us to affect the life we want for ourselves and our environment.  In doing so, we have a better chance of happiness and fulfilment and in avoiding melancholy, frustration and ultimately depression.  In order to avoid these pitfalls we must each begin to think and act outside of the box.  We need to let go of personal insecurities and embrace different and new approaches of achieving our objectives.  We must begin to become mindful of our approaches and actions and indeed mindful of our very selves.  This is harder to do than to talk about, however it is possible.  It is in this way that we introduce a frank and straightforward approach to how we engage with our clients on all levels.  It is only by boldly embracing new and fulfilling mind-sets that we can avoid the ruts and traps of tradition and in potentially becoming a statistic.  It is the fear of change that holds back the change that we so desperately need today and to move forward and create the 21st century we want.

I am constantly amazed that organisations, as well as individuals, continue to do things the same way over and over again and expect different results.  More and more people have said to me recently how difficult and worrying doing business is becoming and how frustrated and unhappy they are beginning to feel.

At Conduit, when we engage with new clients they initially state that ‘we do that ourselves why would we need you? We have been doing it this way for years with reasonable results’.  The fact is they may well do some aspects of what we offer as a business; however they do not specialise the way we do.  They do not have over 12 years’ specific hands on experience of direct commercial engagement over periods of time that have been proven in unlocking value.  They often fail to appreciate that our services may seem familiar on the surface, however they are completely different, we use new and exciting approaches in engagement at all levels in building value.

The Conduit building blocks and our commercial approach is unique, effective and proven. We diagnose businesses that are failing to meet expectations and enhance further those that are demonstrating potential.  Our approach identifies patterns and we unbundle and free up business models that are stuck or failing.  We engage as if part of the management group and work with the team day to day.  We ensure that the focus and alignment of the business is optimised, and that all aspects of the resource are operating in unison to deliver to plan.  We test current beliefs and encourage opportunistic thinking.  We develop together believable and achievable objectives and goals.  Quite simply we enthuse potential.  We mentor the team to choose the future they desire, we then empower them to create it themselves.  We not only think and act outside of the box; we don’t believe there is one. 

For more information on Conduit’s proven approaches please call 01235 831777 or email hollymunns@conduitpartners.co.uk

Communication Breakdown?

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We have found that communication in this age of instant communication remains poor.  Companies are often failing to communicate their vision effectively; frequently they then fall short in aligning the workforce behind a common well-articulated vision for the business.  Expectations are often blurred and unclear, or they have a low priority or indeed are ignored completely. This leads to them being open to misinterpretation. Taciturnity should be the scourge of today’s business as it gives birth to ambiguity, there should be no mistake about vision and mission in today’s business and no excuse for failing to have them crystal clear both internally and to the outside world.  Whilst we hear many bosses and business leaders requesting frankness from their staff and to ‘tell it like it is’, how many really mean this and would know how to manage it?  Leaders who invite confidence should be mindful never to violate that confidence.

The first rule I learnt as a CEO was to communicate all expectations with unmistakable clarity; I was keen to ensure that each member of staff took responsibility and remained their own person, in accordance to their own true feelings and objectives. That said I never insisted on loyalty; that would be their personal choice.

Conduit Partners begin any business engagement with a bespoke workshop; in most of the company workshops we facilitate, we insist on all of the senior team being present for the day.  This offers a unique insight into the dynamic of the team, how they relate and interact with each other, the dialogue and vocabulary. We see where the silos are, the loners, the team players and of course the terrorists and saboteurs.

Only a team of strong and independent managers aligned behind a common vision with a true focus can enable a business to succeed.  Irrespective of who is at the helm, a well balanced team, with the appropriate skills and qualities, are essential in supporting an early stage business with ambitions for rapid growth and expansion.

In order to create the bonds of common purpose and enjoy the value of cultivating a trusted and valued team, reviews in communication and purpose should feature regularly and should not be underestimated.  Leadership requires choices, every day.  Many of these choices require value judgments; an effective leader communicates these in a way that inspires.

Conduit Partners workshops are designed to get to the heart of these issues, to evaluate where the communication is strong and where it is failing.  This in turn allows a company to focus on the areas that are productive and generate revenue, to become an effective communication stronghold.

For more information about how to improve the communication in businesses and to unlock the true potential please contact Conduit Partners Ltd on 01235 831777 or email hollymunns@conduitpartners.co.uk

Can you think outside of the box?

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There is so much conflict in the news at the moment that feeds and breeds fear, uncertainty and doubt.  We tend thrive as our best self in an atmosphere of buoyancy, familiarity, harmony and unity.  In this climate we tend to retreat to survive rather than looking out and seeing how we can embrace new approaches and ideas to counter the despondency.  I have always believed that in order to realise the future you want, one has to create it ourselves.  That means stepping out of personal comfort zones and traditional ways of doing things. Thinking differently and challenging convention, looking at other ways of doing things.

Back in 2000 I was being interviewed on the business news channel in Singapore that reached most of Asia.  I had just established a business there and set up a KK in Yokahama, Japan.  I was asked by the presenter of the show for my views on the recession at that time. I said that rather than fear it I welcomed it as an opportunity for new thinking, innovative products and entrepreneurs who were unafraid of pioneering new concepts and approaches.  The look of shock on her face was plain for all to see, she was almost speechless and said I doubt you will get many agreeing with you in that view.

I didn’t. However I did get some, individuals who could see that they had to explore and choose different ways of doing business.  Together we formed a bond of likeminded people who embraced and forged new ways of thinking and new approaches that would influence future products and the way the world shaped.  We rode out the recession, we attracted likeminded organisations who joined us and traded out of the gloom with new offers, approaches and products.

In this risk averse economy there are still opportunities, they don’t go away, they may be harder to find, more challenging to establish and even more arduous to develop.  However rigour defines quality, it seeks it out, prioritises it and with the appropriate interventions mitigates risk.  During the last few years we have introduced these principles of working in a very tough economy with outstanding results.  We are now seeking likeminded organisations and inviting them to take the first steps in forging new approaches that may well be unfamiliar and uncomfortable at first.  I was asked recently if the 11X return to the Carbon Trust’s investment in Conduit services was in real cash; it was, it was in investment and sales revenue generated.  Moreover it was not as a result of a big ‘one off’ deal that bumped the figure up. It was in fact across over 30 companies that we focussed on, believed in and worked with the management to gain insights and breakthroughs.

So, I would point to the words of one of the greatest innovators, the late and quite brilliant, Steve Jobs.  I hope his inspiration inspires you to think outside of the box.

 “Your time is limited, so don’t waste it living someone else’s life.  Don’t be trapped by dogma – which is living with the results of other people’s thinking.  Don’t let the noise of others’ opinions drown out your own inner voice, and, most important, have the courage to follow your heart and intuition.  They somehow already know what you truly want to become.  Everything else is secondary”. 

For more information on Conduit’s services, that are designed to gain commercial breakthroughs contact us on 01235 831777 or email hollymunns@conduitpartners.co.uk

Time for a change?

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Ah, I get it now; there were more people who did not want to see my friend’s band than did! The ‘out of comfort zone ‘ was too much, then risk too great. I understand, nothing ventured and all that. Risk profile too high; however exposure to risk varies greatly depending on which hilltop you reside.

It surprises me the way we humans fail to learn from past models that have been unsuccessful; it is as if we are paralysed or fearful of trying something new, getting it wrong or getting fired. Given that shareholder value remains the key objective with great exits playing a huge part in this, indeed the primary objective; why aren’t more investor funds exploring alternatives, why are they not seeking out ways to reverse current trends, why are they not actively seeking ways to change their approach?

It turns out that some are. Since my last announcement it looks like we will be nearer 14X ROI if we close the current fundraising. We are now being contacted by funds and fund managers asking to how we achieved such returns particularly in such a poor economic climate and inquiring as to how we might work together. We welcome this; we want relationships with investors like the Carbon Trust, where we can add value in this level either as partners in JV’s or partnerships.

Therefore if you are seeking to attract and raise additional funds or have portfolio investments that need to get to revenue; we offer a proven approach and successful track record that offers a significant differentiator; indeed if you have companies that really need accelerating to unlock the value, or indeed if you wish to know if they won’t, then again we would be happy to talk to you about how we can assist.

We work in various ways: a strategy to scale programme; time and expertise for equity models; new innovative approaches to qualify commercial viability; generation of quality deal flow; IP FTO diligence; outsourced sales channel capability; understanding and control of the commercial process; or even to be your commercial expert on the board. We have proven our value through our approach in hundreds of early stage companies over the last ten years. We pride ourselves on a great value proposition that offers an inside track into deal flow and a clear route to maximise exit strategies.

It is a combination of these approaches and in working with fund and portfolio managers that have enabled us to deliver such a significant ROI.

Please call 01235 831777 or email info@conduitpartners.co.uk to discuss how your fund or your portfolio companies can benefit from our experience and approach.

What we miss out on when we don’t take risks!

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There is an advertisement on TV right now whereby a guy is touting tickets in a shopping area to see his friend’s band in a local pub. Probably London. He is handing out free tickets and asking passers-by to come along and see his friend’s band perform live in a pub around the corner. It is actually an advert for a new drink; typically, many people turn down the offer as too good to be true or can’t be bothered, however some take him up on the free drink offer and the chance to potentially see a new hot band live. The ad cuts to the inside of the pub, the band turns out to be Plan B and the drinks are all free as it is the launch of Bulmer’s new exciting and hip cider. What can we draw from this? As I see it it’s about taking a risk, a chance of a new experience, we weigh up the risk/reward factors, assessing how threatened or confident we feel about an offer.

In accepting the invitation certain individuals experience free drinks, and, ironically, the experience of meeting new liked minded people and seeing live, arguably one of the best new artists around; and those that turned it down, missed the opportunity!

I am curious as to how many times we do this in our lives. The point is, I personally am the sort of person who would have gone for the free drink and to see ‘his friend’s band’ but then I am naturally curious and from my experience, it’s what true entrepreneurs do. We do not turn down an opportunity as we are eternal optimists, however many motorways I found in business, I entered 10 times as many cul-de-sacs! I often still do. I rarely ever turn down the chance of an opportunity, despite my advancing years, particularly the chance of experiencing something new and stimulating, to be exposed to an area that potentially could involve an opening and growth.

Most of today’s top companies were started by people with this ethos, by enthusiastic entrepreneurs, innovators and pioneers, carving out new lands of opportunity for yet unproven ideas and technologies. The sad fact today is the cynical corporate world is too risk averse, the investment community have turned venture capital into an oxymoron and no one has any confidence any more, or they simply see something as too good to be true. The band could have been rubbish!

Imagine then my delight following three years with a client when we delivered an 11X return on their investment; imagine then, our gearing up to promote this and offer to share this experience with liked minded businesses who could see how strong this proposition was particularly in today’s economy.

Do you want a ticket to see my friend’s band?

To learn more about using Conduit services together with information on how our clients receive 11:1 ratio return on their investment please email Holly Munns; hollymunns@conduitpartners.co.uk or telephone 01235 831777.

 

Rigour to drive 11:1 ROI in 3 years but still possible!

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We are rigorous in both our assessment of new businesses but more so in the support we provide to the businesses with which we engage to drive value. We believe this is one of the cornerstone reasons for our success in driving an 11:1 return on investments in three years. Many small businesses today are burning cash and having to go back to investors as they are running out of money. In turn investors are having to follow their investments just to prop up companies failing to unlock the value and generate revenue. The big question is how do you know when and if they are going to yield?  Our success comes from over 10 years of working with early stage businesses in the technology sectors mainly taking the guesswork out of this. Conduit Partners run a workshop on each business. The workshops are intensive sessions that put a business into context within Conduit Partners Commercialisation Architecture that enables all stakeholders to visualise the current status of the opportunity. The workshops develop an environment that yields rapid, aligned, powerful team experiences and decisions, and uses proprietary methods and tools in the critical business disciplines of opportunity prioritisation. The workshop days drive an internal consensus from the management team and stakeholders on the business strategy and initiatives designed to deliver both:

  • Commercial Visibility
  • Go to Market Strategy/Viability

During the workshop Conduit produce a bespoke commercialisation map (architecture) to provide the team with a visual representation of the current status, and future vision of the business.

The Strategy Workshops are intense, stimulating and enjoyable days.  They are led by expert facilitators who are skilled at drawing out insights and making sure that the whole team contributes.  Consequently, the environment is informal, with openness and honesty encouraged, creating positive constructive debate.  It is vitally important that one opinion does not dominate the proceedings and that all issues – however unpalatable – are uncovered.

The teams are taken through a series of exercises that address each of the six pillars that make up the Conduit Commercialisation Architecture.  For example:

1)      Customer needs and expectations

2)      Segmentation values, data and trends

3)      Points of pain and market needs

4)      Market sectors, intermediaries, channels and routes to market

5)      Products, core methods systems and infrastructure

6)      Services, added value and support

7)      Value proposition offers and promise

8)      Decision Quality, prioritisation and reduction of risk

9)      Organisation and culture environment and capability

10)   Integrated tactical execution and communication strategy

11)   Business objectives goals and imperatives

We manage the inputs creatively so that the team is stimulated and the group’s energy levels stay high. The discussion, issues, and vocabulary surrounding each of the pillars are captured and presented graphically on the single, flowing “Visual Map”, which acts as the repository of knowledge and a ‘snap-shot’ position of the potential business strategy.

Importantly, the outputs are presented graphically and rapidly in such a way that they provide a planning framework.  This means that insight is gathered-up and can be taken forward, developed, acted upon and used to drive business transformation and inform investor decision making.

The workshops come in various formats and are a cost effective starting point for investors to evaluate whether to follow on or walk away. They are hugely beneficial to the businesses as they are designed to get them to market quicker by highlighting and prioritising the areas that need focus. We regularly reduce the sales cycles of these businesses to weeks rather than months.

To learn more about the low cost of entry to using Conduit services together with information on how our clients receive 11:1 ratio return on their investment please email Holly Munns; hollymunns@conduitpartners.co.uk or telephone 01235 831777.

Conduit Partners Deliver 11:1 Return on Investment

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Conduit Partners are delighted to have our contract with the Carbon Trust extended for a further two years, this follows on from an extremely successful three years whereby Conduit have delivered and 11:1 ratio return on their investment in our services to the Carbon Trust. During this period the Carbon Trust has build renowned reputation as the premier support service of choice devoted to low carbon entrepreneurs and, as such, Conduit demonstrated exceptional expertise and experience to be selected as one of a small number of preferred suppliers.

The services provided, delivered and managed by Conduit to 30 companies included:

  • Understanding Market Opportunities
  • Supporting Patenting and Intellectual Property Policies
  • Finding Customers and Partners, and Assistance in Negotiations with them
  • Securing Sales and Building Pipeline
  • Providing Interim Management and Mentoring
  • Building the Case to Attract External Investment, and making introductions to Investors
  • Supporting Companies to Define and Refine their Business Strategy
  • Teambuilding
  • Venture Due Diligence
  • Research and Development Grant Project Appraisals, Mentoring and Project Management.
  • Fundraising

Conduit also provided Carbon Trust client companies with valuable insights into technology commercialisation and venture business development and made a material difference to the success of some of the UK’s most innovative clean tech ideas through the Carbon Trust relationship. Conduit engaged directly with venture teams and industry and have a “hands-on” approach that enables us to deliver practical solutions and resolve complex problems; we have proven that this approach  adds much more value than purely providing generic advice. The Carbon Trust benefitted from our ten years of experience and found it particularly useful that we were able  to communicate and work equally well at board and senior management level as well as with technical, sales and operational teams. They found us effective at tackling difficult situations in which conflicts or tensions are present. The Carbon Trust held regular formal KPI performance reviews and Conduit consistently came out a top-rated, high quality supplier.

The success of these services can be judged by the success of the companies supported. Conduit was involved in over 30 Carbon Trust early stage companies, which subsequently leveraged £11.1m of external funding or direct sales revenue. These figures made Carbon Trust the most successful low carbon entrepreneur support service in Europe, a result which was to a very large extent due to the direct support to entrepreneurs provided by Conduit, and one of which we are extremely proud of being involved in.

I have been showing anyone who would take notice the NESTA figures proving that expert support intervention delivered in the early stage of a companies gets them to revenue quicker and builds valuation. The returns on this early investment by a ratio of 6:1 (NESTA FIGURES) these latest Carbon trust figures go to further prove that experienced focused and dedicated expert intervention, working closely with management teams, stake holders and investors delivers nearly double that return and helps significantly mitigate risk. Whilst many investors believe they can do this themselves or leave it to the management team, we, having proven this, believe that if that were the case fewer portfolio companies would be needing follow on money today.

Is anyone taking notice?

Why SMEs and government should rise to the cleantech innovation challenge

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There’s a dilemma with innovations in low-carbon technology: there’s no shortage of them, and there’s a compelling need for them, but there’s a challenge in securing capital and commercialising them in a way that provides a sufficiently speedy return on investment.

In my presentation to Showcase Wales, the Carbon Trust’s Annual Conference this week, I said one of the principal challenges was the uncertainty of value that society and government choose to place on reducing carbon emissions.

It was no coincidence that I emphasised this point in the days following the agreement reached in Durban during the climate change talks. I do hope the ‘Durban platform’ means the world’s economies – especially the developing ones like India and China – really have committed to reducing greenhouse gases. However, hasty verbal agreements concern me almost as much as the three-year timescale required to draft the treaty, let alone the fact that it won’t come into force until 2020.

It’s certainly a move in the right direction, though I admit that until I heard the outcome in the early hours of Sunday, I feared it would not happen. Support for the Green Climate Fund – which has promised $100bn of aid per year to help developing countries –also sounds promising, but I question where the money is coming from. Will it be too little, too late?

Whatever the eventual outcome of the Durban summit, I believe we in the UK should continue to lead by example and innovate for the future – in spite of the considerable challenges. If we are smart, we can position ourselves as global thought leaders in the development of new technologies that not only reduce carbon and save fuel but open up new possibilities for economic growth, new skills and routes to international markets for our innovations!

How can we do this? As well as setting out the challenges in my presentation, I also outlined some solutions:

  • The government, as a major purchaser, needs to reduce the market risk for SMEs by adopting early-stage innovations in the low-carbon technology sector. It should set itself up as an early adopter. In fairness, many local authorities are doing this but we need to see more activity. Could it be mandatory to trial and develop homegrown IP in the government and local authority workplaces? We have seen evidence of huge energy savings in the sector by the adoption of homegrown technologies, hi and low tech. Renewable Obligation Certificates (ROCs) might even be stifling innovation by providing poor quality intermittent electricity. Maybe this needs reviewing: maybe ROCs should be taken away for poor supply, which might put the focus on other innovations that provide continuous electricity?
  • There needs to be an improvement in access to risk capital and aligning technology solutions to corporate innovation needs. While venture capital remains challenging – often nonexistent – we believe corporates will play an increasingly important role here, and SMEs should be formulating strategies around understanding corporate needs and where their pain is.
  • Corporates, in turn, also need to develop a strategy of how to embrace the opportunities that cleantech SMEs present – using intermediaries or external technology scouts, where appropriate, to make introductions – and to invest further up the supply chain of SME innovation. We see many early-stage technologies looking for corporate partners with hugely appealing solutions in our position with the Carbon Trust.
  • We need to tackle the skills deficit by providing credible business support services to assist SMEs, such as the investment readiness services, corporate introductions, training and mentoring services that we at Conduit Partners provide as part of the Carbon Trust Entrepreneurs Fast Track programme. Other funds and corporates would be well advised to look at this model, as the impact has been significant.

All of these steps would help make the UK a leading light in demonstrating the principles of the Durban agreement. We could demonstrate a climate-saving reality, it would give us international routes to market for our solutions, and we could prove to other nations the benefits of such an agreement rather than it being just a lot of hot air and something to be avoided. Energy is a global issue.

If you’re an SME interested in the Entrepreneurs Fast Track, or a corporate interested in finding suitable SME innovations, email hollymunns@conduitpartners.co.uk or call 01235 831777.

Why investors need to overcome their fear of risk and bring innovation to life

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Without the momentum of innovation, the UK economy will be dragged to a halt. However, while innovation is the very essence of business, it needs the beating heart of investment to bring it to life. But in the current climate, investors are playing safe and avoiding risks.

That’s why it is such good news to hear that the government has announced a major catalyst for angel investing in innovating entrepreneurs, as reported by the British Business Angels Association (BBAA). The Seed Enterprise Investment Scheme, from April 2012, will investors backing early-stage seed businesses up to 50% tax relief. Early-stage businesses will be able to receive up to £150,000 under this scheme – which will be crucial in helping get businesses established and create a structure for growth.

We also applaud the new £50m Business Angel Co Investment Fund – called the Angel CoFund – supported by Capital for Enterprise Limited and a grant from the Regional Growth Fund. The fund will be able to invest between £100,000 and £1m in SMEs, alongside syndicates of business angels.

BBAA chair Anthony Clarke is quoted as saying: “This enhanced 50% tax break will stimulate high net worth individuals to see the benefits of using their cash for investments in very early seed-stage businesses where these deals may have seemed too risky.”

Anything that mitigates risk has to be welcomed. Innovative entrepreneurs have been starved of venture risk money, and these moves should encourage investors to look at mid to longer term investment opportunities especially in the technology and clean energy sectors, which are a hotbed of innovation. Adopting new technologies – whether high or low tech – will ensure companies have competitive advantage now and in the future.

It’s not just the SMEs that will benefit from a more fluid approach to risk: innovation and diversity are essential for large companies looking to maintain and grow revenues and provide enhanced shareholder value, and they will have to consider where their next profitable innovation will come from. Process-driven companies need to develop and apply creative solutions for their own sustainability, and they need to look for innovations that offer good prospects for growth.

To enable corporates to engage and invest in innovative clean technology start-ups in areas that have been deemed strategically important for their business. Conduit Partners is launching a new initiative in the New Year following 10 years at the forefront of evaluating technology for commercial potential. This new service will not only identify these companies but ensure they are investable and then managed to ensure value is created in both the business and product. We intend identifying and bringing businesses with innovations that can help corporations advance through and beyond the current economic climate and future proof their profitability and their prosperity.

For a risk-free discussion about the innovations and opportunities that can put renewed life into your business – or to discover more about our new service – email holly.munns@conduitpartners.co.uk or call 01235 831777. 

 

Is your business managing change? Or is change managing you?

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If you run a business, as an entrepreneurial venture or a major corporation, we are all in the business of change – or at least we should be. But some of us are more open to change than others.

As technology scouts for the Carbon Trust, our business is based on identifying the next big thing, shaping it, commercialising it and growing it. Supporting the next cleantech ventures, and helping them find investment, puts fuel in the engine of an innovative future.

Except that not everyone wants to embrace change; some would much rather put the brakes on or go into reverse than face change – even when the situation becomes intolerable, as we’re seeing currently with markets crashing, unrest exploding, and Europe set for a €400bn bailout. It’s the not knowing that can create uncertainty and ambiguity.

Change can be awkward. Change can be painful. Change can bring up conflicts that we would much sooner ignore or deny. Change can prompt what psychologist Leon Festinger called cognitive dissonance, which is defined as “a discomfort caused by holding conflicting ideas simultaneously”. People seek to reduce dissonance by changing their belief, emotions or attitudes, or by denying and blaming.

Yet it is in navigating these conflicts that brings growth. In order to allow the new world to emerge we have to accept that we must do things differently. So what does that mean for the business world, and what is Conduit Partners’ role within that?

1. Working with investors who have under-performing portfolio companies that are not engaging effectively in the value chain or with customers, we offer assistance to give investors a better perspective on their business to make better-informed investment decisions.

2. Working with corporates that rely on innovation to guarantee their survival in a tough economic climate, where margins are pinched and staff are stretched, we help them create the space for innovation, motivate and mobilise employees, and encourage long-term thinking and the effective day-to-day delivery of a shared vision for the creation of a successful future.

How we react to the challenge of uncertainty in business will define how we want to shape our personal and commercial futures. The only way to predict the future we want is to create it ourselves; to find the answers; to be more diligent; to go the extra mile. That is where the business of the future will be done.

Change is inevitable. It’s our reaction to it that defines our business and shapes our success.

Conduit Partners has cost-effective approaches in positive commercial interventions to suit all budgets, often working on a risk-reward basis. To learn more about our partnership approach to business, email holly.munns@conduitpartners.co.uk or call 01235 831777.