Companies in Transition

                                                                                            October 2008

Dear Friend,

      This month’s issue of Companies in Transition continues the theme taking control of your own destiny with a discussion of the success process. For most people, business, professional, or financial success does not just happen. It usually comes as the result of a lot of hard work based on a carefully thought out, well executed plan.

      There is good news and bad news in a difficult economic environment such as the one we currently face: volatility and uncertainty create opportunity, but your plans will be sorely tested. Jerry Butler was right – Only the Strong Survive.

      We hope you enjoy this issue of Companies in Transition.

Wayne Wilson

Taking Control of Your Own Destiny: Part 2 - The Success Process

By Wayne Wilson

      Successful business owner/CEOs are like highly successful people in most other endeavors: they are control freaks; they want to control their own destiny. Their success is often based on an intuitive understanding of certain universal success principles.

      These universal success principles fall into three groups or phases: preparation, process, and power. [1] Part 1 of this series focused on the five principles of preparing for success:

• Desire is the great motivator.
• Your beliefs empower you.
• Brainwash yourself (before someone else does).
• Dream big dreams.
• Multiple minds matter. [2]

      But preparation alone will not bring you the success you desire; you must ACT on your dreams. And your actions must be part of an orderly and systematic process.

      The success process includes these five precepts.

Surviving the Credit Crisis

      The current credit crisis is a reminder of the importance of having a sound financial plan to navigate through turbulent times.

      In a letter to clients and friends we offered some suggestions to help you assess your current financial condition and begin re-thinking your business plan in response to current economic challenges.

1. Don't panic. It's difficult to make sound decisions if you do.
2. Take a fresh look at your monthly income and expenses. Have you been meeting your budgeted projections? How much of a drop in revenues can your business withstand and for how long? Analyze your expenses and determine which ones can be reduced.
3. Reduce your reliance on credit by disciplining your spending. What are your cash-flow needs? Do you have sufficient cash reserves?

Continue reading the letter

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Doing What Matters

      The title of James Kilts' book about the Gillette turnaround [1] reminds me of a story. In a prior life, colleagues would often bring me problems which they wanted me to solve. Frequently, these problems were nuisances rather than strategic or operational. My response became, “don’t bring me problems whose solutions are not going to make a difference in the business three years from now.”

      Most companies in need of a transition, however, suffer from several real maladies at once. Those maladies tend to fall into three buckets:

• The strategy is fuzzy, tired, worn out, behind the curve, or immature.

• There are people problems everywhere but no talent program.

• People are working hard running in every possible direction.

What should you do?

• Sort out the strategy - Sometimes this is simply a matter of tweaks and emphasis.

• Figure out the people issues - Nothing much good can happen until you make progress here.

• Ration the resources - Most businesses are leaky boats with cash seeping out everywhere.

• Lead from the front - Clear, concise, consistent communication about direction, goals and progress will act like a magnet to point everyone in the same direction.
  

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[1] James M. Kilts, et al, Doing What Matters, Crown Business, 2007

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Wilson Elected to ARIAD Board of Directors

      Wayne Wilson has been elected to the board of directors of ARIAD Pharmaceuticals, which is engaged in the discovery and development of breakthrough medicines to treat cancer by regulating cell signaling with small molecules.

      ARIAD is developing a comprehensive approach to patients with cancer that addresses the greatest medical need - aggressive and advanced-stage cancers for which current treatments are inadequate. ARIAD has a global partnership with Merck & Co., Inc. to develop and commercialize deforolimus, ARIAD's lead cancer product candidate, which is in Phase 3 clinical development.

Read the Press Release.

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