Do you have a network of professional Quality?

Many of us have been growing a LinkedIn network for a few years. I was not an early adopter of LinkedIn and joined reluctantly when a friend suggested I “had to.” (I forget why that was at the time, but it was probably baloney.)  Now I’m a LinkedIn fan.  But it’s not because of LinkedIn’s app or features.  I believe those of us who use LinkedIn daily intuitively feel that our network has Quality, and using LinkedIn reinforces the sense that we’ve made good judgments about our connections and therefore about our own lives.  It’s that sense of being connected to a Quality community that feeds LinkedIn’s following. 

Some people think Quality is a purely subjective measure of value. I believe instead the word Quality captures something most people can intuitively sense and instinctively appreciate. Quality is easy to find in Nature.  It’s not so easy to find among human beings. So perusing a news feed from a network of individuals of Quality triggers a slight but meaningful rush of comfort and pride.  If you think I’m over-analyzing, consider the people in your network who got there “by accident.” The people you’d really rather not have in your network because, at a fundamental level, they degrade the Quality of your network.  I say don’t feel guilty about those feelings. Because Quality is real.

The other thing about a network of Quality people is that it reveals a network of Quality services and products. Chances are, Quality individuals who have real influence within their companies are going to make it more likely that their companies deliver Quality to their customers. A lot of stuff can get in the way, for sure, but a Quality network connection is as good a starting point as any in your search for Quality business partners and solutions.

Do you admire the Quality of the company you keep on LinkedIn?  Does the same apply to Facebook or other social networks?  How selective should we be when it comes to building a professional network?

P.S. If I’ve struck a chord here, you would enjoy reading (or rereading) Zen and the Art of Motorcycle Maintenance.

10 questions you must answer to get ready for a winning IPO or other exit

I like to work with clients who want to be ready for anything. Early planning for an eventual liquidity event such as a buy-out or IPO positions you to maximize your enterprise value when it counts.  Having an exit strategy for your investors doesn't mean planning your own demise as a management team or your retirement. An IPO, and even an acquisition, typically marks the start of a new phase of growth, not the end of your career. So don't delay getting ready for a winning exit.  Here's a short quiz for yourself or the private companies you work with, to see how prepared the company is for a sale or IPO. If you can't confidently answer "yes" to all 10 questions, you have some work to do starting today:

1. Can you and your team describe your business model, addressable market and risk management strategies as well as you can explain what your product does?
2. Are your contracts written, negotiated and maintained to be consistent with your business model and risk tolerance?
3. Are you capturing the business data essential to validate your successes?
4. Have you tested your compliance with local tax, employment and other regulations wherever you operate?
5. Have you been maintaining best-in-class governance practices consistent with your stage of growth?
6. Have you simplified your capital structure as much as possible?
7. Have you secured the rights and assets you need to defend your competitive advantages?
8. Are you reinforcing good communications practices to protect your reputation?
9. Have you set your employment and compensation policies to retain and develop key talent?
10. Are you keeping good records (which does not mean keeping everything)?