What really excites Private Equity, Part III? Beware of the Genie!

February 26, 2022 Melanie Hawken

Over the past two weeks, we have looked at what excites PE Investors at the back end of your business (production, supply etc) as you come to them to catapult your business into the next stage of its growth. We then looked at the front or sharp end of your business - can your current customers handle the massive increase of products, or will you need to find new customers? If so, why the PE Investor is interested in your cost of acquiring these and just how sticky they are. Oh and what your retention rate is over this time, can you hold onto customers, or are you expensively bringing in new, to replace old as they leave for whatever reason? We also pointed out that we as Lionesses need to expect difficult questions, because as the Harvard Business Review has shown here, there is a dis-balance between questions asked of male founders (promotion orientation) and of female founders (prevention orientation) - as if we haven’t enough issues to work around!

What really excites Private Equity? (Part 2) Or how to think like an Investor.

February 20, 2022 Melanie Hawken

Last week we looked at some of the questions that will be thrown at us when in front of Private Equity Investors, indeed any investor will have those same concerns so be prepared! Look at your business as if an Investor, and start to think like one.

What to expect from Private Equity Investors

February 12, 2022 Melanie Hawken

We were fortunate enough recently to be invited to listen to various Lionesses as they pitched their fabulous businesses to different Private Equity firms we had introduced. We say ‘fortunate’ because firstly the pitches we heard were absolutely perfect, with the right blend of ‘story’ with detail, and secondly the various PE Firms came back with questions that not only showed their interest, but also their concerns which the Lionesses each answered clearly and with conviction.

Fear, risk and being human

February 6, 2022 Melanie Hawken

“If there be light, then there is darkness; if cold, heat; if height, depth; if solid, fluid; if hard, soft; if rough, smooth; if calm, tempest; if prosperity, adversity; if life, death.” — Pythagoras. “…if prosperity, adversity” or put another way, ‘if profit, there is risk’. Risk is there, it may be hidden, but it is there… you cannot have one without the other.

Four Thousand Weeks

January 30, 2022 Melanie Hawken

“I have become to myself a land of trouble and inordinate sweat.”

St Augustine in his confessions (here) wrote: “Assuredly I labour here and I labour within myself; I have become to myself a land of trouble and inordinate sweat.”

I labour within myself.

We’ve all seen them - the surveys that ask just how busy we are, how much time we have for a walk in the Park or a chat with our neighbour. The results are all depressingly similar - as the years move on so we become busier and busier. Running at full speed is never enough and as we fall exhausted into bed after yet another day spent at 100mph we have that nagging thought that perhaps we just didn’t achieve all we set out to do when we bounded out of bed that morning.

A consistent voice, a clear purpose, a coherent strategy and a long term view

January 23, 2022 Melanie Hawken

We woke to find it was Davos week! The gathering of the ‘Great and the Good’ of the finance world under the World Economic Forum banner who meet once a year in Switzerland to discuss, deliberate and invest, is as regular as a one of their famous Cuckoo Clocks. Sadly, at the last moment, and especially for those already in their Ski Jackets, Covid hit again and Davos was postponed until the summer and replaced by a few on-line speeches. All was not lost however, because one who is always at this event, a certain Mr. Larry Fink, CEO of BlackRock, the world's largest investment firm with many US$ billions under management, recently published his annual letter to shareholders. In this there is a call to arms for all CEOs:

Harness the power of purpose to your advantage

January 16, 2022 Melanie Hawken

“More than 19 million US workers — and counting — have quit their jobs since April 2021, a record pace disrupting businesses everywhere.” according to McKinsey (here). What is going on and what can we learn from this to ensure that the same does not happen within our businesses?

‘Arch’ of Joy

January 9, 2022 Melanie Hawken

“Do your little bit of good where you are; it's those little bits of good put together that overwhelm the world.” — Archbishop Desmond Tutu

The South African Nobel laureate, Archbishop Desmond Tutu (“Just call me ‘Arch’) who sadly died on December 26th 2021, was according to the Financial Times (here)“…a beacon of honesty, conviction, inclusiveness and human decency.” He was also one of those rare people in public life to be totally consistent. His battles were against injustices, any injustice and this drive of his, through his words and indeed actions remained constant and consistent throughout his life: “We cannot afford to be silent in the face of injustice, inequality and poverty, and we may not falter in the face of oppression.” (here)

Grow Your Own Resilience

December 12, 2021 Melanie Hawken

As we come to the end of yet another year ‘like no other’, it is only right that we look to the future with an understanding of what has passed. After all, none of us can claim not to have been infected by the events of the past two years, not only by the horror that was 2020, but then the realization in 2021 that Covid was here to stay, and either we adapted our businesses or we were finished. Sadly, no one cares why a company goes out of business, there are no excuses in the business afterlife - it is just closed, which in anyone’s books is pretty final.

‘Tuko Pamoja’ - “We are in this together” / ‘Ubuntu’ - "I am because we are”

December 5, 2021 Melanie Hawken

The South African Scientific Community have done it again. They have found the next variation of Covid19. Following the Greek Alphabet in naming each new variant, the WHO jumped a couple of letters and named it Omicron.

“Inopem me copia fecit!”, or abundance makes me poor

November 28, 2021 Melanie Hawken

Without doubt the greatest playwright this world has ever known, not least because his plays delve deep into the psyche of the human mind and thereby stay relevant for all age, William Shakespeare knew a thing or two about decision making and their consequences, intended or otherwise. From the horrific decision by Macbeth to kill the King; to the indecision of Hamlet fighting with his thoughts and morals (to kill the King); to the madness of King Lear following his insistence that his Daughters tell him which loves him more; to the jealous decisions of Othello utterly convinced that his wife is cheating on him; to the horrific unintended consequences of Romeo and Juliet, with both dead in the end (he wrote so many incredible plays, we should perhaps stop there!). But decisions rule our lives.

If you live in a world where you don’t need ramps, you simply do not notice

November 20, 2021 Melanie Hawken

The above powerful photo of Sázia Sousa, in her words “a proud member of Lionesses”, the General Director of Technoplus, Lda, Mozambique (here), taken by the brilliant Giulia Bosis, says it all for what we are, as she says:

“A note for the International Women Entrepreneur's Day:

Be a # woman and be a # entrepreneur! I have this photo as a symbol of much that I have achieved so far. And for all women I scream: We do not want to be equal to men. We do not want to stop taking care of the house or the children. We just want them to stop looking at women as a being incapable of opinion, intelligence, and strength. We want to stop conditioning our life to a successful marriage. We want to continue being women, but above all, we want to be human beings able to help our community.”

Climate change leadership takes bravery, courage and action

November 13, 2021 Melanie Hawken

At the time of writing, COP26 is into its last days and sadly it is not looking good for any meaningful results. The current feeling is that (non-binding) commitments so far given are driving us to an increase of 2.6 degrees, significantly higher than the 1.5 required to keep the globe relatively stable. The above quote tragically says it all. It is from Philip Davis, the Prime Minister of the Bahamas, one of the many countries on the battle front of Climate Change, as he arrived home disappointed but sadly not surprised by the lack of courage in his fellow leaders. "I invited them to be brave, to be courageous and act…” But as he added: “They don't seem to have any teeth to them.” (here)

“We can’t get to net zero by flipping a green switch”

November 6, 2021 Melanie Hawken

…and so said Mark Carney the ex Bank of England Governor, now the UN’s special envoy on climate action and finance (here), and indeed he is right. To save the world; to ensure people continue to have homes, jobs and a future; to allow for a world where crops are not constantly facing drought one day and then hit by flood the next; to ensure that forests continue to provide habitats and local (and global) climate ecosystems - this all requires long, hard work from us all. Just to put it into further context, successive years of extreme weather events have plunged Madagascar into what WFP officials say is the world’s first climate-induced famine. Five years of consecutive drought compounded by sandstorms, as well as cyclones, an invasion of locusts and growing insecurity have created what World Food Program officials call the perfect storm. There is no magical green switch.

COP26, Trick or Treat?

October 30, 2021 Melanie Hawken

In a recent interview, climate-change activist Greta Thunberg when asked how optimistic she was that the COP26 conference could achieve anything, responded "Nothing has changed from previous years really. The leaders will say, 'we'll do this and we'll do this, and we will put our forces together and achieve this', and then they will do nothing. Maybe some symbolic things and creative accounting and things that don't really have a big impact. We can have as many COPs as we want, but nothing real will come out of it.” (See here her interview), but should we be so negative about the work that our politicians are about to do in a wet and windy Glasgow in the UK?

To Inquire, To Discover - Let’s talk Apprenticeships

October 23, 2021 Melanie Hawken

We recently saw a wonderful video of the famous Noam Chomsky, a retired professor from the Massachusetts Institute of Technology (MIT). To simply say he is a ‘retired professor’ is to utterly understate his impact on the globe, as he is one of the most cited scholars alive, so people really do go quiet and listen when he starts to speak. You can see him here.

'Divinely Discontent!'

October 17, 2021 Melanie Hawken

“One thing I love about customers is that they are divinely discontent. Their expectations are never static – they go up. It’s human nature. We didn’t ascend from our hunter-gatherer days by being satisfied. People have a voracious appetite for a better way, and yesterday’s ‘wow’ quickly becomes today’s ‘ordinary’. I see that cycle of improvement happening at a faster rate than ever before. It may be because customers have such easy access to more information than ever before – in only a few seconds and with a couple taps on their phones, customers can read reviews, compare prices from multiple retailers, see whether something’s in stock, find out how fast it will ship or be available for pick-up, and more. These examples are from retail, but I sense that the same customer empowerment phenomenon is happening broadly across everything we do at Amazon and most other industries as well. You cannot rest on your laurels in this world. Customers won’t have it.”…and so wrote Jeff Bezos in his 2017 letter to Amazon shareholders. Since then the world has just got significantly faster, customers more demanding for higher quality, lower prices and more speed, until Covid hit the reset button and the world stopped for breath.

Concentrate on what you do best and ‘EaaS’ the rest!

October 9, 2021 Melanie Hawken

There was a time when if you wanted to travel from Kenya to New York, the only option was a boat. Telegrams were the fastest way to get a message any distance and if a child left to study or live and work in another country, an occasional letter would be all that one could hope for. These days we have got as close as possible to Teleportation (moving from A to B instantaneously), without actually climbing into a machine and being transported to another place, as Zoom/Teams have become commonplace. We are now suddenly ‘transported’ into the office or living room of another with such ease. Indeed perhaps teleportation is not so far off - they have recently invented the ability to have a hologram placed in front of you that you can touch and the sensation will be just as if you are shaking their hand - incredible! Of course not everything is changing - on the subject of letters home (or occasional zoom), to be fair in this area - plus ça change, plus c'est la même chose!

Timing is everything!

October 3, 2021 Melanie Hawken

We often hear of ‘first mover advantage’ whereby the first one into a new industry, country or product, the ‘Pathfinder’, has a significant advantage that is not easy to beat. But is that true?

To a certain extent, yes. There is after all a reason we all still talk about “Hoovering our homes” (yet Hoover Inc (formed in 1908) has not been the market leader for years), but to stay at the top (as Hoover did for many decades) is not easy and takes serious effort.

Selling? Shift that Language!

September 26, 2021 Melanie Hawken

“…in theory there is no difference between theory and practice, while in practice there is…”, so wrote Benjamin Brewster in the June 1882 issue of The Yale Literary Magazine, and don’t we all just know it! That is why for all the articles we read from the global consultancy firms; for all the University papers written about our industries; for all the young consultants who approach us fresh from University clutching their newly printed MBAs; we know only too well that nothing beats the experience of working at the coal face and seeing the day to day problems, up close and personal.