Second Wind’s (http://www.secondwind.com/) mission is to advance the use of wind data to make wind energy profitable for the businesses and investors who create wind energy plants, painless for the operators who work with wind energy equipment and practical for the businesses, consumers and utilities that benefit from wind energy as a low-cost and environmentally desirable source of power.

Second Wind prides itself on technology innovation with its in-house hardware development and software engineering talent. The company continues to develop ground breaking products related to wind data.

Thirty four employees staff Second Wind’s headquarters and manufacturing facility.  The company has an industry-wide reputation for innovative, reliable technology and excellent customer support. Inc. magazine recently ranked Second Wind on its first-ever Inc. 5,000 list of the fastest-growing private companies in the country. The company’s ranking was based on its 27% revenue growth from 2003-2006 and was the only business-to-business wind organization in the energy industry category. In December 2007, Second Wind secured $4 million in second round financing from Good Energies, a leading global investor in the renewable energy and energy efficiency industry.

Second Wind has been growing steadily, with annual sales of about $7M in 2008. Their clients include the largest developers and operators in an industry with a 30% annual growth rate.

History

Second Wind was founded in 1980 by Walter Sass and Kenneth Cohn.  Engineers who have been friends since grade school, they decided the emerging field of wind energy provided an opportunity to leverage their engineering skills to benefit the environment. They recognized that, to succeed, the industry needed more than wind turbines. Wind developers also needed software and hardware to measure wind accurately at prospective sites and to monitor turbine performance at established wind farms. The company’s first headquarters was the spare bedroom in Sass’s home.

Second Wind established a presence in wind resource assessment in 1981 by introducing the first data logger designed specifically for wind energy prospecting.  In 1985, the company introduced their first wind farm monitoring system. In 2007, Second Wind launched the Triton^TM sonic wind profiler, designed to re-invent sodar for wind profiling.

Market Opportunity

Wind energy is growing at 20-30% annually.  The market is global, with 17 countries having attained over 1,000 MW via wind.  Of the $37B invested in wind energy in 2007, 2% was for wind resource assessment instrumentation and services, or $735MM. 8,000 met towers were installed for prospecting, power performance and operations.  Target markets for wind assessment include large, medium and small developers as well as services firms.

The pressing need for viable alternative energy sources that do more than just supplement coal fired power-stations is driving advances in the development of wind energy. A major hurdle in establishing successful wind farms is the difficulty of attaining accurate site evaluation data.  The Triton Sonic Wind Profiler addresses this challenge. Designed to measure wind-speed at heights of up to 200m without the need for erecting costly and less effective masts, the wind profiler utilizes a technique known as Sodar (sound detection and ranging) that measures sound wave echoes in the atmosphere. The technique is not dissimilar to Sonar detection used by submarines underwater.

In evaluating a suitable site to establish a wind farm, measurements need to be taken over a period of at least a year. This has been achieved, until now,  by using a meteorological mast or met mast – a tower equipped with anemometers and other weather instruments. These masts are limited to a height restriction of 60m; any taller tower requires aircraft warning lights, which complicates assessment of a site for a turbine 75-80m high.  Another complicating issue is the masts’ high visibility, which can raise public concerns before the site has been properly evaluated.

Relying on precise measurements of frequency and time delay from sound pulses that are bounced back to the transmission unit by wind turbulence, Sodar technology provides a virtually invisible tool which measures wind speed and direction at heights up to 200 meters. The Triton system also overcomes some of the problems associated with existing Sodar technology by remaining effective even in poor weather and delivering easy to interpret wind data without an on-site presence.

Triton also boasts innovations such as a hexagonal transducer array and a tri-lobed acoustic enclosure that increase accuracy by improving signal-to-noise ratios and beam focus, rugged construction making the unit effective in all weather conditions and able to correct measurements when used on uneven ground.

The Products and Customers

Triton^TM Sonic Wind Profiler re-invents sodar technology for wind assessment. It captures accurate wind data from any height, in any weather, at any location, without being attended. Readings look like anemometry results, with no expert analysis required.

SODAR (SOnic Detection And Ranging  http://en.wikipedia.org/wiki/Sodar ), or sodar, is a meteorological instrument which measures the scattering of sound waves by atmospheric turbulence. SODAR systems are used to measure wind speed at various heights above the ground, and the thermodynamic structure of the lower layer of the atmosphere.

Sodar systems are like radar (radio detection and ranging) systems except that sound waves rather than radio waves are used for detection.

Sodar sends an audible “chirp” up through the air, and wind turbulence sends a portion of the sound back toward the ground. By precisely measuring the frequency and time delay of the chirp’s echo, the sodar device measures the wind speed and direction at various heights.

Sodar technology is commonly used for “site profiling” at the end of the prospecting process for potential wind farm locations. It measures above the 60-meter height of most meteorological masts, assessing wind at actual turbine heights. In addition, sodar is more portable than masts and can be moved to determine ideal turbine placement.

Current sodar products have multiple limitations for wind profiling. They require on-site support to

operate, and deliver wind data in formats that require expert interpretation. Readings must be carefully analyzed to filter out “side lobes,” or sound artifacts from nearby trees and buildings that can produce inaccurate results. Most current sodar products also must be covered in rain or snow to avoid damage to the sensitive microphones and speakers.

Benefits of the Triton Sonic Wind Profiler

Numerous Triton innovations address the shortcomings of existing sodar products for wind profi

• • More accurate data. A hexagonal speaker array (patent applied for) focuses sound beams more

effectively than previous designs, which improves signal-to-noise ratio accuracy and decreases

disruption. The array is housed in a tri-lobed acoustic enclosure, which reduces the chance of

sound artifacts disrupting data.

• • Unattended use in any location. A solar array and battery can provide adequate power for the

Triton unit to operate for prolonged periods of time, depending on available sunlight and amount

of use.  Bundled with new Skyserve satellite wind data service, the Triton profiler delivers

accurate wind data to any computer from any location in North America.

• • Ready-to-read data. Unlike other sodar products, the Second Wind sodar delivers easy-to-read

data that is similar to data read outs from conventional meteorological towers.

• • Works in any weather. The unit is made of rugged plastic with stainless steel components and

sound absorbing material that functions when wet, unlike foam. Internal temperature sensors and

a propane heater also allow Triton to operate in icy conditions.

• • More portable and less obtrusive. At six feet tall, Triton can easily be towed by a pick-up truck.

The unit has internal controls to compensate for uneven ground, and a built-in GPS and compass

identify the time and location of data as it’s captured. Because of better acoustics, it is also less noisy than other sodar products.

The Position

Reporting to the VP Global Sales Peter Gibson, the Director Eastern European Sales will be responsible for the planning and execution of sales activities for Second Wind in Eastern and Central Europe. The Sales Director be focused on direct sales of the company’s Triton SODAR device and services.

[click here for more]

With the introduction of the Triton, Second Wind is slated for considerable growth.  The company currently has over thirty Tritons in commercial operation in Europe, with more than 20 customers.

This role will have responsibility for sales of Second Wind’s Triton Wind Profiler to customers based in Eastern Europe, primarily comprising the countries of Poland, Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Serbia, Turkey, Bulgaria, Romania, Ukraine, Belarus, Lithuania, Latvia, and Estonia.  The Triton Sales Director will operate from an office located within Eastern Europe, preferably in Poland or Romania, with 75% expected travel within the sales territory.

Attributes

• • Strong business executor/bias for action – very high level of self motivation
• • Excellent teaming/share resource skills
• • Excellent communications skills, both verbal and written
• • Aptitude for very rapid marketplace and technology mastery
• • Low self and high performance ego

Background

• • Strong understanding of the regional markets, technologies, and key players within the Eastern European wind energy industry. An appreciation of renewable energy markets, especially experience in developing wind projects, would be a distinct advantage.
• • Track record of closing sales, operating successfully at all levels of customers’ organizations, from executive level to functional specialists.
• • Proven ability to deliver high sales growth numbers.
• • The candidate will ideally have familiarity with or connection to associations, companies and/or governing bodies that represent partners and markets for the Triton Wind Profiler.
• • An engineering degree with at least 2 years experience within the Eastern European energy supply industry is a minimum requirement.
• • Experience with the hands-on nature of early stage companies would be an advantage.

Responsibilities

Successful candidate will be responsible for developing and rapidly growing a highly profitable Triton business with customers in Eastern Europe.

Specific responsibilities include but are not limited to:

• • Development of new and existing sales accounts, cultivating Triton advocates within customers’ organizations and identifying opportunities where Triton deployments will add value to customers’ operations.
• • Secure business from a range of customers including Wind Project Developers, Investor-Owned Utilities (including their Non-Regulated Subsidiaries), Federally-Owned Utilities, and Wind Industry Services Providers.
• • Represent the Company at conferences and trade shows within Eastern Europe.

Coordination of activities with the Company’s Triton sales team, especially in respect to customers with business interests beyond Eastern Europe.

Financial Backing

In 2007 and 2009, Second Wind secured $5+ million in second round financing from Good Energies (www.goodenergies.com), a leading global investor in the renewable energy and energy efficiency industry.

Compensation

Compensation is competitive with the position’s requirements.  In a performance-based environment, this will include base salary, and sales incentive bonus structure.

Location

European-based.  Preference for location in Poland/Eastern Europe.

CEOs and executive leaders of innovation-stage companies often ask themselves what is the best approach to employee appreciation, productivity and retention.

We’ve all heard the stories around the lengths some venture capital-backed companies go in their efforts to service the needs of their employees.  What started as the water cooler and drip coffee pot, fast-growth companies have super-sized, continuing to up the employee pampering ante–  installing company-paid cappuccino machines and Kurig coffee makers with what appears to be an endless supply and variety of coffees and teas.  Keeping well-stocked office kitchen pantries with either favored junk food, healthy snack choices, or both.  Catering lunch, breakfast, dinner, sometimes all three meals plus a midnight snack that rivals food options found on luxe cruise liners.  Car valet services, onsite dry-cleaning pick-up/drop off, massages, yoga, concierge services, onsite daycare/nanny service, bring-your-pet-to-work options.  And on and on and on, the calories and comfort food arms race continues its grim march toward caffeine OD and adult-onset diabetes.

However, there’s a moral and dilemma CEOs often face when trying to strike the right balance of perks and austerity.

The argument for pampering:  In the new knowledge-worker driven economy, there is often precious little machinery or automation.  So every time an employee walks out the door to Starbucks, Dunkin’ Donuts, the sandwich shop, or the drycleaner, the corporate engine slows down a notch.  Therefore, the logic emerges that if you can remove all interruptions for employees, you’ll get far more in productivity out of them than junk food and pampering you put in to them.

The argument against:   It’s expensive.  It creates a sense of entitlement in employees.  It creates a false sense of prosperity in a company that may be pre-revenue and in need of several more rounds of funding before it can stand on it’s own two financial legs.

Some might say that economic recessions pound the potential for excess back to square one.   OK, so perks have slowed down a bit after each economic set-back in the last decade, starting with the Internet bubble bursting and post-Y2K malaise, the aftermath of 9/11 on the U.S. economy and, most recently, the banking sector melt-down.  However, after each setback it seems a new “floor” gets set that’s just a bit tonier than the last one.

So how do CEOs handle this arms race in employee perks you ask?

Below are a few lessons learned and secrets shared by a number of CEOs who know a bit about the word “value” in serving up employee perks-

Perks Case Study A: Intra-office “micropreneurship.” The secret of the concession license

One venture-backed CEO wanted to offer some of the perks, but not all when it came to stocking the pantry.    So, rather than facing an all-or-nothing approach, the CEO decided that a business principle was in play that could be exploited in a win-win-win fashion–  what the company had as an asset was the equivalent of a monopoly.  He reasoned that employees were a captive audience.  If the CEO offered the “vendor concession” contract to an aspiring employee who wanted to make a few bucks, the company would offer exclusive stocking/inventory rights to that employee to stock the pantry.  However, in trade, the employee had to agree to offer below-market pricing on food and beverages, and also manage the “SKU requests” that the employees would log from time to time regarding food selection and preferences.  His formula in a nutshell looked like this:

-          win for employees-as the got a below market food and beverage offering, the equivalent of a “company subsidized” pantry offering

-          win for the “intra-preneur”-who was given the food concession to run, and could make a few extra bucks running the business

-          win for the company-the company didn’t have to provide all the food gratis, nor had the headache of fielding all the requests from employees

Perks Case Study B:  Serving dinner not as an entitlement, but only to the truly meritorious

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One venture-backed CEO faced the challenge of a sense of creeping entitlement around having dinner served every night at the company.  It had become customary to provide engineering dinners to keep them on track and not leave the building.  It cost money (VC investor’s money) and the productivity gains were being questioned and balanced against real expense dollars.

What this CEO determined was that working hard in a start up was the price of admission for equity.  60 hours a week was expected.  What would earn merit-pay in the form of dinner?  They scheduled the meals for 9:30p for everyone in the company who was still there.  This removed the stigma of an engineering only benefit.  It also made sure that “real effort” was rewarded.  And it sure ended up generating significant cost savings since the number of employee dinner was demonstrably lower as a result of the dinner hour shift from early to late evening.

Perks Case Study C: The allure of the “exotic”

One CEO had seen a swelling food and beverage budget over several quarters.  Given that burn rate was still an issue, he decided he had to do something about it.  But what to do? If he cut the corporate gourmet lifestyle, he might lose employees, or start to hear grumbling about how the company “used to be generous to its hard working staff, but now seems more interested in penny-pinching.”   So, he devised a plan to attract a high-end coffee shop into the building in which the company was housed.  After landing a Starbucks down in the lobby, the food and beverage spend dropped precipitously, employees being lured away by what they perceived to be just a notch above what the company offered in its own pantry.

Perks Case Study Addendum (extra bonus points):

One CEO had determined that staying on plan or on schedule for technology companies is a chronic challenge.  At some point he decided to reward achievement with a champagne toast.  But it created a double-edged sword.  Once they truly scoped out the development schedule and locked in the Gantt Chart, the CEO would write it on the champagne bottle and have everyone on the team sign it.

Then on the date the goal or project was to be achieved the CEO opened the champagne no matter the outcome.  If team made the goal or were near it, it was a great celebration.  If the team missed, the champagne tasted like the worst thing you can imagine.  The CEO recounted that he even had one person refuse to drink it, stating that the thought of doing so was too distasteful!

The next time an opportunity for a champagne toast rolled around, the engineering team knew what was coming and they got much better planning and targeting their development goals.  The CEO mentioned that he still has many of the signed champagne bottles as mementos of past hard work and development team milestones but hit, and missed…..

***

Comments are welcome with other creative approaches to fueling the entrepreneurial engine.

http://www.boston.com/business/articles/2010/01/10/you_have_your_foot_in_the_door_how_to_keep_it_there_1263010162/?page=1

There’s a lot written about the entrepreneur, entrepreneurship, and what ingredients make for success over failure in the industry of business venturing.  Much of it is pretty shallow, pop psych fodder, meant to be read in a short trip to the commode, and disposed of similarly.

Books like Malcolm Gladwell’s Outliers takes a much more thoughtful approach, one of myth-busting versus myth-making.

Another similarly thoughtful deconstruction of entrepreneurship was brought to my attention via Babson College’s new president, Len Schlesinger, and his efforts to better match entrepreneurship’s leading institution for  higher education and its curriculum with a more effective toolbox for start-up success [full disclosure, Babson is my MBA alma mater].

Dr. Saras Sarasvathy, Professor at the Darden Graduate School of Business, is the author of this piece, written back in the dark corners of the 2001 post-Bubble recession, when entrepreneurship was the worst nightmare of those smart enough to avoid its allure while clinging to safety in their day jobs.    The full piece can be found at www.effectuation.org/ftp/effectua.pdf.

As a foundation for the suppositions Sarasvathy makes in her article, she interviewed 30 founders of U.S. companies ranging in size from $200M to $6.5B across the spectrum of industries.  She also had them each tackle the same case study to see how each founder approached the problem-solving required.  Her goal was to try to determine whether there was a common denominator in the way entrepreneurs thought, and if so, could it be distilled to several core nuggets of “teaching wisdom” to help aspiring entrepreneurs.

After Sarasvathy completed her interviews, she transcribed the tapes in search of a common set of principles each entrepreneur operated from in problem-solving.  Sarasvathy strings the principles she identified together into what she terms “effectual reasoning” of the entrepreneur.  Effectual reasoning is a different approach to problem solving than what is used in large corporations, or already successful and established enterprises.  She refers to the mature company’s approach to problem solving as the inverse, or predictive, “causal reasoning” -

Causal rationality begins with a pre-determined goal and a given set of means, and seeks to identify the optimal – fastest, cheapest, most efficient, etc. – alternative to achieve the given goal.

However, effectual reasoning takes a very different approach, and the metaphor Sarasvathy uses paints an evocative image of the difference-

It does not begin with a specific goal.  Instead, it begins with a given set of means and allows goals to emerge contingently over time from the varied imagination and diverse aspirations of the founders and the people they interact with. While causal thinkers are like great generals seeking to conquer fertile lands (Genghis Khan conquering two thirds of the known world), effectual thinkers are like explorers setting out on voyages into uncharted waters (Columbus discovering the new world).

Sarasvathy identified that there is no question that creativity is the cornerstone of effectual reasoning.  Another metaphor she uses is that of cooking – a chef given a recipe, versus a chef given the ingredients.  The chef given the recipe can go out and shop for what they need, compare cost versus quality versus convenience given the time allowed to prepare the meal, and create a very “causal” approach to the preparation.  However, the chef given the ingredients must use his or her creativity and invent a dish out of a combination of what raw materials they were given, and the background and experience they have had in cooking across their career.  Sarasvathy refers to this creative chef as having three categories of means:

1.      Who they are – their traits, tastes and abilities

2.      What they know – their education, training, expertise, and experience; and

3.      Whom they know – their social and professional networks.

From these means, they start to cook up their idea, be it a product, service or invention.  One of the big initial differences between causal and effectual reasoning is that causal reasoning demands a rigorous analysis before any test-marketing of a product begins.  MBA curricula herald that a best practice for starting a business is extensive market research before any products are actually offered up for public consumption.  Conversely, effectual reasoning relies on very early market and customer feedback to guide product development.  This interaction with the actual market and its users is a very iterative process.  Using this approach, at some point a clear path evolves, and one or more achievable goals (new products, services etc. that the customer likes) make themselves apparent.
At a deeper layer of analysis, Sarasvathy identifies three underlying principles at work in the process of effectual reasoning and how it is distinguished from the causal reasoning approach:

1.      While causal reasoning focuses on expected return, effectual reasoning emphasizes affordable loss. The key way to do this is to try to sell the product  before you’ve even made it.  See if you can get someone to buy something that doesn’t exist yet. “I will have “x” available in the near future, will you buy it?”  There is no sunk cost of manufacturing or development; a simple conditional close is used on a prospective customer.  If they say no, there is very little lost.  However, there is a lot gained regarding information, and perhaps a different product or service is articulated by the customer that they would buy.

2.      While causal reasoning depends upon competitive analyses, effectual reasoning is built upon strategic partnerships. Effectual reasoning dictates that once you find something a customer will buy, you then identify a few key players in that market, and establish deep strategic partnerships with them.  Make them premier or “flagship” customers, and dig into their further needs while selling them your first product to help refine, expand, and augment the value of your existing and future offerings.

3.      While causal reasoning urges the exploitation of pre-existing knowledge and prediction, effectual reasoning stresses the leveraging of contingencies. Sarasvathy puts it best, referring to it as “the ability to turn the unexpected into the profitable.”   One of the entrepreneurs she interviewed phrased it this way – “I always live by the motto of Ready-fire-aim.  I think if you spend too much time doing ready, aim-aim-aim-aim, you’re never gonna see all the good things that would happen if you actually start doing it and then aim.  And find out where your target is.”   It is similar to an old artillery approach to hitting a target. You would take your first shot, and then adjust the canon accordingly.  Causal reasoning on the other hand, tends to focus on the avoidance of surprises as much as possible.

Sarasvathy goes on to distill further the differences in the logic that underpins causal and effectual reasoning -

Causal reasoning is based on the  logic, To the extent that we can predict the future, we can control it.   Effectual reasoning, however, is based on the logic, To the extent that we can control the future, we do not need to predict it.

Sarasvathy gives several examples of how causal versus effectual reasoning might play out in different scenarios.  However, entrepreneurs all preferred to be in markets that were not predictable.  In unpredictable markets, the entrepreneur can shape the outcome rather than a predictable market where vast resources would be required to accurately render the predictive analytics required to succeed and win.  Business schools often teach the following mantra for sales:  you should sell either new products to existing markets, or existing products to new markets, but never sell new products to new markets.  For entrepreneurs however, effectual reasoning specifically targets new products for new markets.

Sarasvathy wraps up her research and results, concluding -

Entrepreneurs are entrepreneurial, as differentiated from managerial or strategic, because they think effectually; they believe in a yet-to-be-made future that can substantially be shaped by human action;  and they realize that to the extent that this human action can control the future, they need not expend energies trying to predict it.  In fact, to the extent that the future is shaped by human action, it is not much use trying to predict it – it is much more useful to understand and work with the people who are engaged in the decisions and actions that bring it into existence.

Also in her paper and of particular interest to our firm as executive recruiters, Sarasvathy makes the point that entrepreneurs –  whether the founders of a company, or those who join start-ups early in their existence –  need to feel emotional ownership in the goals and objectives of the start-up company and its mission, “…and can only be incentivized by the belief that the effects they create will embody their deepest passions and aspirations while enabling them to achieve their best potential.”  When we recruit executives for our clients, not only should they have the requisite resume experience with in the technology, medical devices, software, cleantech, or mobile, but we interview deeply against the less visible characteristics Sarasvathy refers to in her research.  We have adopted the term “eductive reasoning” for what Sarasvathy refers to as pattern recognition where patterns are not immediately obvious (see http://en.wikipedia.org/wiki/Fluid_and_crystallized_intelligence).  When selecting an executive, resume is just the starting point, with thorough assessment of entrepreneurial DNA actually the more predictive of success in any given executive role in growth-stage companies.

###

Saras D. Sarasvathy is a member of the Strategy, Entrepreneurship and Ethics area and teaches courses in entrepreneurship and ethics in Darden’s MBA program. In addition, she teaches in the doctoral program and the research seminar on Markets in Human Hope. In 2007, Saras was named one of the top 18 entrepreneurship professors by Fortune Small Business Magazine.

Saras is a leading scholar on the cognitive basis for high-performance entrepreneurship and is the author of Effectuation: Elements of Entrepreneurial Expertise (book overview). Effectuation is widely acclaimed as a rigorous framework for understanding the creation and growth of new organizations and markets. The research program based on effectuation involves over a dozen scholars from around the world whose published and working papers can be found at www.effectuation.org.

The question we framed was phrased as follows:

“In evaluating the success of an executive hire after 12 months, what would be the top 3 criteria that you would use?”

The first choice from the poll results is somewhat self-evident– that the executive has exceeded performance expectations (goals, milestones, objectives, etc.) for the specific role from the CEO’s perspective.

However, the second most popular metric was “established internal and external reputation as functional expert.”   Essentially, this means that the executive has built his or her own political/social capital with internal peers and external influencers, customers, vendors, or other external relationships key to the success of the company.

The third most important metric was “culture fit.”   This was selected over the other 4 remaining metrics offered by a more than 2 -to-1 margin.

The question that pops up is how a CEO might best measure the  #2 and #3 metrics.  For both of these metrics perhaps a 360-degree review at the end of 12 months would be beneficial.  There are tools offered by the likes of the Hay Group and others that do an online version of this contextual employee review that can be quite useful to determine an objective read (see http://www.haygroup.com/tl/Questionnaires_Workbooks/Emotional_Competency_Inventory.aspx ).

Perhaps it would also be interesting if an executive search firm who brought a candidate to an organization also made this part of their fee structure.  And facilitated the process/offered the tools to make it happen.  Food for thought.  The goal of the executive recruiter would be to serve as that often mythical “trusted adviser” of executive talent, facilitating as much objectivity around executive team-building and talent assessment as possible.

Worthy of note is the fact that “integrity” ranked near the bottom of the list of success criteria.  No doubt CEOs assume perhaps that this is a given in any candidate.

Below is a partial list of Jude’s lessons learned, selected for those that carry strong correlation both to a natural disaster such as Katrina as well as an economic disaster.  Following it is some interesting Q&A in dialoging with him about the experience.  And to learn more about Jude Olinger’s firm, go to www.olingergroup.com.

After crisis strikes…

-         Lesson #1 - Don’t panic but act quickly.  Stay focused on the tasks that you have to accomplish to recover.  Prioritize tasks and act upon them immediately.  Time, or rather lack of time, is your enemy.  Everyone is going to want your time… so have to prioritize and think ahead.  Anticipate things that might happen and prepare for them.  If you know you have to lay people off, and it’s a reality, then do it.

-         Lesson #2 - [In knowledge worker industries] Don’t lose your greatest asset – your employees.  Be decisive.  Communicate with employees quickly and frequently.  Be a leader and let them know the plans and intentions of the company and how they fit in.  Evaluate what you can do for them immediately and provide as much assistance as possible.  Don’t lose the key people that make you successful every day

-         Lesson #3 - Communicate with your clients and vendors quickly.  Let them know that you are still in business and intend to fulfill your obligations.  There often is  client empathy and understanding for about a week.  Then clients start to look to mitigate their risk by moving business-all or at least part of it-to another provider just to reduce their risk.   Keep them from defecting.  IF they don’t hear from you, then they’ll assume that risk is real in continuing to work with your firm..

-         Lesson #4 - Locate your advisors (accountant, insurance agent, banker, attorney) quickly and leverage their knowledge/expertise in the recovery.  These relationships should become PERSONAL…  you need to know your banker’s wife, husband, and children….  For accountant/bankers, questions like:  ”Should I do a 25% paycut?” (accountant/CPA), or “Will banks offer any forebearance in the interim?”

-         Lesson #5 – Be selfish with your time - everyone will want it, and you won’t have enough of it to go around.  Tend to your personal relationships and yourself.  Crisis will test you mentally, physically, and emotionally and you will need all of your strength and energy to survive it.

-         Lesson #6 - Get the facts - not things reported as fact by the media – before making any major life or business decisions.  Lots of false rumors will abound.  Filter information carefully.  Be as close to the information as possible – the further you are away from it, the less accurate it is.

-         Lesson #7 - Don’t consume too much media.  It will discourage you and take away from your focus.  Expect lots of inaccuracies in the news – see Lesson #8.

-         Lesson #8 - CASH is KING – even more so in a crisis.  Build up cash reserves.  Manage cash flow very wisely.  Be prepared for a 3 to 6 months cash flow crunch and figure out how to survive it.

-         Lesson #9 - Don’t count on ANY government assistance (FEMA assistance, SBA loans, or other federal/state assistance).  By the time you get it, if you get it, it may already be too late.

-         Lesson #10 - Keep a positive attitude - no matter how bad your situation – or you are done.  It’s the one thing that you have total control over and is critical for you to persevere.

-         Lesson #11 - Don’t expect things to be what they were before.  They won’t be the same.  Adapt, adjust, and keep moving.  It will never be “what it was before.” And don’t expect it to be.

Times of crisis test us in ways that we can never imagine.  It’s these times that makes us stronger and more determined.  Don’t let ANYTHING, not even a catastrophe, get in the way of reaching your goals and achieving success.

In further discussing the lessons Jude took away from the Katrina experience as an entrepreneur/business owner, here are some of Jude’s sentiments some three years out from ground zero:

Q: How are you entrepreneurs in New Orleans different after than before?

A: We’re smarter.  We had a chance to start from scratch, and can be anything we wanted to be (operationally).  When you lose everything, you have an opportunity to start all over again, and you can do it better the second time you build the house versus the first.  All of us have gotten smarter about who we want as clients, focusing on more profitable clients that fit the core value proposition of the company, versus taking on all comers.

Q: Has it permanently changed, or only temporarily changed your prioritization of work, family, and personal?

A: Jude said that one word was crucial on keeping balance…. “perspective.”  It’s all about perspective, keep proper perspective, and realizing that not everything may be as bad as you might think it is.  Put all things in perspective.   Events like Katrina [or the current economic crisis] create incredible stress.  Perspective is critical to subdue this stress.

Q: And “that which doesn’t kill you makes you stronger”?

A: True.  But it’s an unfinished sentence.  The end of the sentence is “but leaves deep scars.”  Think about PTSS (Post-Traumatic Stress Syndrome… Vietnam/Iraq…) Your life is turned upside down, you spend 3 years re-building it, and you always will fear that something will happen again.  “I cry a lot more.  Am much more empathetic… in a good way.   I believe the Katrina experience has allowed me to can connect to people better than before.”

A total of about 60 CEOs responded over the last 10 days, across various industry sectors, more than 90% of respondents located in the Northeast U.S.

The first question and responses show that almost half of the companies have already taken preemptive downsizing measures.  It appears that more than 40% of venture-backed CEOs in their leadership wisdom have already in the last several months made adjustments.  And 10% more are looking to do so in the next 30 days or so.

The question that wasn’t asked but we’ll try to do a follow up around is, “When would you make a second round of cuts, and what economic or other indicators would you look at and need to see move more negatively to make these cuts?”

In a quick analysis, given survey responses, it appears the bell curve peak is in the 20-40% reduction in headcount.  The group of CEOs who indicated these reductions were approximately half of the 60 CEO respondents.

• 40% or more staff reductions? ~ 10% of total CEOs surveyed

•    Less than 20% staff reductions? ~ About 17% of all CEO respondents