Tag Archives: Preparation

How Do You Interview for New Hires and Promotions? Part 1, Three Points

Situation: A CEO seeks advice on interviewing both for new hires and promotions. What advice and guidelines do others suggest to improve interviews? How do you interview for new hires and promotions?

Advice from the CEOs:

  • Preparation before hiring or promotion is critical.
    • Preparation means having a road map – for what will be accomplished in the new position and for how the company selects and hires or awards promotions.
    • Discipline: have the patience to do it well.
    • Be aware of and watch for possible legal issues. This has become increasingly important under DEI.
  • Raise the bar. Each new addition or promotion should enhance the company’s capabilities instead of just filling a slot.
    • Hire individuals with skills that complement areas of your own or the organization’s weaknesses.
    • Be creative in developing sources or new hires.
  • Ask open-ended questions and follow-up with additional open-ended questions to clarify areas that the response opens.
    • Focus interview questions and processes to identify demonstrated values and habits.
    • Insert pregnant pauses into the interview. How does the interviewee respond?
    • Listen for what is NOT said as much as what is said.

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How Do You Prepare for Sale of the Company? Six Points

Situation: A company’s founder and CEO wants to sell the company. The company’s software is well-suited to current governmental priorities and should be of value to potential buyers. What are the best steps to take both to prepare for a sale and to sell at the highest price? How do you prepare for sale of the company?

Advice from the CEOs:

  • Add a person with connections to potential buyers to the board.
  • Look for an M&A specialist who knows the company’s market.
    • The right specialist will help validate the valuation of the company, review and identify potential purchasers, and make the inquiries that will lead to the sale of the company.
  • Investigate M&A cases in the industry and related technologies – both cases of firms like the company and cases of companies that may be suitors to determine their purchasing behavior.
    • This will help develop strategies to maximize the value of the company and the optimal bargaining position and will help prepare for negotiations.
  • Maximize the value of the company in preparation for the sale.
    • The fastest business growth may come from within the company’s current customer base – additional business customers where the company already has contacts.
    • Work up the food chain within existing customers to increase the company’s business within these companies.
  • Important preparations for a sale:
    • Assure that financial records are very clean. These are critical during the price-setting process and in negotiating the final price.
    • In computing company valuation, exclude the salaries of current principals to improve the income statement. These individuals will be replaced post-sale with lower-paid employees.
    • Continue to operate the company as though there will never be a sale. This maintains the value of the company regardless of what happens.
  • How open should be the company be – internally and externally – concerning a potential sale of the company.
    • Be as honest and open as is prudent. The biggest concern will be salespeople who may leave the company if they feel threatened by a sale, or who may stop selling because they do not want to try to explain the situation to prospects.
    • The other “at risk” group is developers, who may fear that they will be replaced or terminated following a sale and who may leave.

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How Do You Update Your Accounting System Without Losing Data? Four Thoughts

Situation: A company has used the same accounting system for over 10 years. The current system produces information quickly and easily, and empowers management and sales to make good decisions. However, it doesn’t respond to customer information requests as well as newer packages. What are best practices for updating your accounting system without losing data?

Advice from the CEOs:

  • One option is to keep your legacy system, but migrate to a user-friendly platform designed to work with a CRM system that can better meet customers’ needs.
    • Keep both systems up live until you no longer need the old system, except as an archive of your historic data.
    • Be sure to cross-train other employees so that your current system doesn’t become worthless if your key administrator gets hit by a truck.
  • Before you decide which direction to pursue, ask what your employees like the current system.
    • What do they find most useful?
    • What accounting features do you need to support your growth plans?
    • What key functions of the current system would you have to emulate?
    • How expensive is it to maintain your current system?
  • Is your business so unique that no off the shelf alternatives exist?
    • Could you adopt an 80-90% solution and customize the rest?
    • It may be difficult to do this on your own. Look for a consultant with a background in accounting applications to analyze your needs.
  • If you feel that you must make a change, but are not ready to do so, develop your solution gradually.

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How Can Business Contribute to the Future of Technology Education?

Interview with Muhammed Chaudhry, CEO, Silicon Valley Education Foundation

Situation: A critical component for the future of technology in the US is a workforce trained in math and the sciences. In Santa Clara County, California – the heart of Silicon Valley – only 49% of high school students complete University of California/CSU qualifying courses, and only 26% of Hispanic students. How can private industry contribute to the improvement of education and the training of future workers?

Advice from Muhammed Chaudhry:

  • Silicon Valley Education Foundation’s objective is to make Silicon Valley the number one region in California in student readiness for college and careers. It has been shown that the top predictor of college success is the completion of Algebra II in high school.  Our primary program – Stepping Up to Algebra – focuses on students and teachers to increase the number of students who are ready for Algebra I in 8th Grade. To date 2,500 kids have gone through our program.
  • We actively encourage private industry to get involved in our programs and to invest in solutions that work. We call this involvement Work, Wealth and Wisdom.
  • Let’s talk about Work:
    • Our aim is for every business person to make it a priority to invest time in public education. This takes an investment – we ask for a consistent investment of 4-5 days a year.
  • Next is Wealth:
    • We encourage every business person to sign up to our Sustainer Program. The commitment is modest – only $5 per month to support our activities.
    • We encourage corporations to Adopt a Classroom for $10,000.
  • Finally we have Wisdom:
    • We encourage business people to get involved. We need help designing technology products that enhance learning and in formulating a blended learning approach.
    • We need to improve the enabling of technology in our schools to improve individualized learning to maximize the potential of each student.
    • We need support and involvement in policy work by contributing business thinking. Education has lessons to learn from business.
    • There is room for innovators who are interested in social benefit and long-term investment with profit as a secondary consideration.

You can contact Muhammed Chaudhry at [email protected]

Key Words: Technology, Future, Education, Workforce, Math, Algebra, Science, College, Preparation, Work, Wealth, Wisdom, Investment, Engineer, Software, Funding, Learning, Policy, Innovation

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