Archive for January, 2011

By Sampad Das

The afternoon session was presented by Yitzhak ben-Zvi . He founded and managed SCINET Inc., a Value Added Reseller of the PCN Practice Management System to physicians throughout the USA. Yitzhak built the company from 2 employees in 1986 to 165 employees in 2000 with 3,000 practices and 12,000 physicians in 30 States before selling the company to WebMD in March of 2000. It was very interesting to know about the growth of SCINET Inc. He also advised on how to grow a start-up . he stressed on superior training and support service to the customers.

While explaining this with an real life example which focused on “you take care of client, clients will take care of you.” He also focused on how important it was to have a right leader for the organization to grow. He mentioned about leadership guidance and the also gave examples on the path of leadership guidance. Some of these were – a leader has to create a vision , build a team , set challenges , empower people to excel, has passion and ability to take risk. Mr. Yitzhak concluded the session with an insight into his future venture.

By Brent Selmins

From completely new business categories to ventures that disrupt an entire industry, entrepreneurial ideas take on many forms.  In the mid-1980’s, Yitzhak Ben-Zvi chose a different entrepreneurial path: his software company SCINET Inc. greatly simplified the communication process among stakeholders in the health care industry.  Before the days of a world interconnected by the information superhighway, SCINET was connecting physicians to insurance companies, pharmacies to drug makers, and specialists to primary care physicians.  He has since sold SCINET to WebMD and works on other ventures.

Mr. Ben-Zvi is the eighth speaker in Professor Steven Stralser’s Entpreneurial Seminar.  His speech echoes themes that are ubiquitous across those who have been successful in their ventures.  The themes Mr. Ben-Zvi stressed as most important:

Making it in the corporate world is very difficult.  If you really want to make it in the business world, you have to start your own business

If you want to start your own business, you must have a vision

Take care of your client, and your client will take care of you

I expect we’ll hear many of Mr. Ben-Zvi’s key points as common themes for the balance of the seminar.  Following the blueprint and listening to the ideas that the entrepreneurs share can only help us on our way to becoming successful in the future.

By  Sampad Das

The first session was presented by the experienced entrepreneur Mr. R. Glenn Williamson . Mr. Williamson has more than 28 years of entrepreneurial executive level experience, primarily in the financial and operation aspects of companies. His strengths extend from advanced capital formation to marketing to positioning people, products, concepts and companies. He is currently the Chairman of the Board of Kinetx (www.kinetx.com ) a 100 person Aerospace firm. He is also founder and CEO of The Canada Arizona Business Council (www.canaz.net ) a private sector group sanctioned by the Canadian Government and the State of Arizona to work on increasing bilateral trade between Canada and Arizona. He stressed on having moral & ethics in business. He stressed on doing business is not alone about money. He also focused on how important it is to innovate and engineer. Mr Williamson presented examples from his life which were very compelling. One big take away from the session was his explanation of “fear of failure”. He mentioned how important it is to take lessons from failure.

By Brent Selmins

Glenn Williamson is a serial entrepreneur’s serial entrepreneur.  The names of companies he has launched is an overwhelming laundry list of ventures in a large swath of different sectors.   Interactive Lasertech, Interactive Media Technologies, GoVideo, Crystal Yacht Group, Sweet Success, and on and on and on. From CPG to aerospace, Mr. Williamson says he is “sector agnostic” when it comes to starting companies.  It’s the creation process that gets him out of bed in the morning, and each new sector is a chance for him to learn something new in business.

“I don’t believe in big companies,” says Mr. Williamson.  He believes the bureaucracy in large companies stifles innovation, and the most creative and innovative developments emerge from entrepreneurial ventures.

What I find most intriguing is Mr. Williamson’s head-long dive into entrepreneurial ventures that require a staggering amount of capital to compete.  His aerospace venture Kinetx competes with industry stalwarts such as Lockheed-Martin, but he has managed to take his decades of business experience to an arena where the barriers to entry are ostensibly insurmountable.

Today, Mr. Williamson is the CEO of Nest Ventures, a private equity firm in Scottsdale, AZ.  He says his experience in running a series of ventures gives him an entrepreneurial empathy with the people that bring him ventures to invest in, which allows him to see opportunities in companies that traditional PE firms often miss out on.

Glenn Williamson Bio: http://www.nestventures.com/index.asp?from=glenn_williamson

Nest Ventures: http://www.nestventures.com/index.asp

By Suzanne Lynn Winterim Student – The Entrepreneurial CEO

The third speaker attending the 2011 CEO Winterim is another Thunderbird graduate, David Dodge, class of 2006 and CEO of Sure Prep Learning.  Mr. Dodge comes from an educational background so it is no surprise that his start up venture would be an extension of this passion that he exhibits freely and enthusiastically.  Sure Prep provides tutoring services for both private paying clients as well as troubled school systems.  Mr. Dodge began his Thunderbird journey when he returned to Arizona to care for a family member and used the time to complete his MBA.

One factor that Mr. Dodge shares with our other presenters is the necessity of “bootstrapping” money for the new venture.  He prefers to grow the business slowly and more organically through self funding and reinvestment.  After Sure Prep brought in its first $1M in revenue, investors began knocking on his door, yet Mr. Dodge turned down the outside money, opting to keep ownership of the firmly within his sole control.  This sentiment echoes statements made by other entrepreneurs in which they admonish the class to either fund companies ourselves or be very, very careful from whom we chose to take money.

Another learning point Mr. Dodge shared with the class is something he learned during what he calls his “1st year challenges” – the invaluable importance of establishing and maintaining contacts.  He was the sole employee throughout the entire first year of the establishment of Sure Prep and his first employee was a close contact from Thunderbird, his wife!  As Mr. Dodge puts it, they had the “one bedroom apartment blues” whereby they primarily worked out of their home, as do many entrepreneurs during the first couple of years.

Mr. Dodge’s 2nd and 3rd year challenges stem from growth pains experienced when trying to attract the right people and delegate responsibility.  He knew he needed a more sophisticated HR system that would eliminate the extra expense that comes when a company has to get rid of a wrong hire.  He also knows that the right hires must be people who have the unique knack of thriving in an entrepreneurial environment.  Mr. Dodge taught himself the HR aspect, but he recognizes that having that knowledge beforehand would have saved a lot of time and extra energy that could have been devoted elsewhere.

David Dodge’s goal is to grow Sure Prep into a $100 million company.  Additionally, certain software he developed specifically for Sure Prep holds a promise of having application purposes in other industries.  Upon reflection of these elements, Mr. Dodge is in a very special and exciting place at this point in his self made career.

By Sampad Das ‘11

The morning session was presented by Mr. Adam Kolawa , CEO and co-founder of Parasoft (http://www.parasoft.com ), a software company in Monrovia, CA that makes software development tools. He is recognized by eWeek as one of the 100 Most Influential People in IT, He has written three books on software development and published articles in The Wall Street Journal, Computerworld, and Dr. Dobb’s Journal. Mr. Kolawa spoke of his experience in different phases of Parasoft. He also gave an insight into how he handled the three recessions or depression in these 30 years. His advice on cash base and diversification was an eye-opener for the young entrepreneurs. As for Mr. Kolawa’s word “When you start with a start-up, concentrate on your case base .Take decisions based on the cash base.” The other insight that will help many entrepreneurs in handling the recession was “Always diversify, never be one product company. Diversify product, diversify country.” He also spoke about motivating the employees, understand the motivational factors of employees, respect normal life of employees and have a learning curve from the mistakes. It was great to leverage out so much knowledge from the technologist and the entrepreneur.

By Melissa Beran Samuelson, Clinical Instructor of Global Entrepreneurship

Our friends in the US are seeing increasing attention to microfinance in the news through the New York Times and a blog in the Wall Street Journal. For those students with me on the Microfinance in India Winterim, the contemporary debates surrounding microfinance in India have surrounded us.  Our course started in Delhi, where we’ve had the opportunity to be introduced to industry leaders and gain understanding of microfinance, how it works, and the issues surrounding criticisms of the industry.

Byomkesh Mishra of the Royal Bank of Scotland Foundation and Shrikand Shrivastava, Vice President and Head of Microfinance at RBS Global Banking, helped kick off our program, along with playing a central role by arranging access to their partners in the industry.  The program so far has included speakers Brij Mohan, Deepak Alok, Founder and Director of M2i Consulting, and Mathew Titus, Executive Director of Sa-Dhan, the leading microfinance network in India, who have all met with us to discuss contemporary issues and implications of the current conditions of microfinance in India.
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 By Brent Selmins, ’11 MBA Candidate

             After hearing Woodie Neiss talk about his experiences, I got the feeling that he was destined to be successful no matter what path he chose through sheer force of personality.  He is such a personable guy, it’s no wonder he’s parlayed his entrepreneurial success into taking meetings with Whoopi Goldberg.

His story turns on a critical component of most everyone’s lives: love of family.  Mr. Neiss’s brother-in-law found himself in the unenviable position of having to administer drugs to his infant daughter.  The little girl refused to swallow the foul-tasting prescription medication, and her father concocted a formula to mask the taste, effectively saving his little girl’s life.  Mr. Neiss realized there was a million-dollar idea sitting in front of him, and worked with his brother-in-law to create FLAVORx, a comprehensive flavoring system so children would take prescription medications. 

Mr. Neiss’s demonstrates the drive to turn life-altering necessities into successful business ventures.  Not every business venture changes the world for the better, and I find it inspiring to see somebody bring an idea to market that has the power to save lives. 

Mr. Neiss sold his position in FLAVORx, and is currently tinkering with new ideas to launch.  I’m sure that whatever venture he decides to direct his energy into, people will be lining up to work with him.

By Sampad Das

The afternoon session was presented by Mr. Woodie Neiss, the young entrepreneur and co-founded of FLAVORx (http://www.flavorx.com ) , the company makes 42 yummy flavors that take the yuck out of medicine.  His structured approach helped not only build a business model that threw off millions of dollars in cash but also helped grow the business from one pharmacy to over 80% of the pharmacies in the United States. He gave an insight into how ideas get lost when people don’t take initiative and how important it is to be passionate about your idea and take initiative to achieve that goal. It was very encouraging to know that that there are so many resources that can help your idea grow. Some of the resources were organization such as EO networks (www.eonetwork.org) and Startup Weekend (http://startupweekend.org) .As Mr. Woodie said “As an entrepreneur,  you are not alone out there”.

By Suzanne Lynn ‘11

The second speaker on the afternoon of the first day is another Thunderbird graduate, Woodie Neiss, class of 1996.  Mr. Neiss, like Scott Walker, shared a passion for the finance side of business, even taking FORAD during his time at Thunderbird.  In fact, it was his experience in FORAD that led to the structuring of FlavoRx, the first highly successful start-up venture in which he was involved.

Woodie Neiss identified two keys that are essential components to getting a business off the ground.  The first is to not attempt to do everything yourself and surround yourself with people who will help you succeed.  Realizing that you are not alone and having like-minded people striving for the same outcome are critical factors for a successful venture.  The second key is to set goals and make a plan to accomplish those goals.  Mr. Neiss explains that he follows a “one step rule” whereby any one goal is accomplished by breaking it up into 100 little steps to get it done.  Smaller steps are easier to tackle rather than attempting a cumbersome, unmanageable, single task. 

Another crucial factor for success that Mr. Neiss referred to throughout every phase of his presentation was to treat all people with respect and dignity.  Earlier encounters at the New York office of Paine Webber showed him the kind of work environment that results when people are treated as disposable with management ready to pounce at the first sign of a mistake.  This lesson was further reinforced during his time at the San Francisco office in which people are viewed as company assets capable of honest mistakes but not punished for them.  He carried this philosophy to FlavoRx when retention and employee satisfaction rates remained high during his tenure (now that many of the benefits he installed are gone, satisfaction levels dropped). 

A last point in which Mr. Neiss was adamant, and he reinforced this point many times, was to carefully consider who you wish to bring on as investors.  He likened it to a partner with whom you would wish to become intimate, which is, in fact, what happens in a business sense.  In this specific instance, the business brokers, as investors, demanded a faster return on their investment that would have caused harm to a core customer of FlavoRx’s.  When pushed to the edge, Mr. Neiss related a rather unpleasant run-in with some of FlavoRx’s investors (in New York City at Tavern on the Green, no less!) which resulted in an immediate buy-out of their shares.  This is also a component of which Mr. Walker warned about in the morning session and both gentlemen stridently contend that the best method for most entrepreneurs is to “boot-strap” their ventures, if at all possible, rather than seek outside funding.      

Woodie Neiss accomplished most of the goals he set for himself after graduating Thunderbird (he is currently working on the last one!) and on a last note, he highly recommends that all graduates who do not have a clear sense of where they are going need to read What Color is Your Parachute (a book I do have in my library given to me years ago by a family member!).  As attested to by Mr. Neiss, the direction and specifics it provides are vital for ascertaining positions and industries in which you will get the most professional satisfaction.

 By Brent Selmins’11, Entrepreneurial CEO Winterim Student

 Hundreds of Thunderbird students walk by the Walker Center for Global Entrepreneurship every day, but it’s a rare opportunity to meet with the person for whom a building on campus is name after.  Scott Walker opened up Professor Steven Stralser’s Entrepreneurial CEO Winterim on Monday morning, and he provides the ideal opening ceremony.  Here is a man who has been through just about every peak and valley that a person can go through before emerging as a multimillionaire philanthropist. 

            Professor Straler’s seminar course offers Thunderbird students a peek at the various stages of the entrepreneurial process.  Hundreds of future MBA’s here at Thunderbird dream of the rush of the start-up, the independence and the multimillion dollar IPO pot of gold at the end of the rainbow.  Mr. Walker certainly represents the ultimate dream for many aspiring business people, but his story also serves as a dose of reality for people with million-dollar dreams. 

            Mr. Walker risked losing everything by putting everything on the line.  When facing the nadir of his own life, Mr. Walker’s competitive drive kicked in.  By sacrificing nearly everything and giving himself completely over to his entrepreneurial instinct, Mr. Walker emerged out of bottom and became one of the most successful businessmen in Thunderbird’s history. 

            Mr. Walker’s story illustrates the sacrifice and risk necessary to have a name featured on a building on campus.  The caveat for students looking to replicate Mr. Walker’s success is not every entrepreneur is wired like Mr. Walker.  However, students in the Entrepreneurial Seminar will get many different perspectives from the 19 speakers coming to visit; hopefully, the perspective of the contrasting experiences will point some T-birds down the road to entrepreneurial success.

 By Suzanne Lynn ‘11, Entrepreneurial CEO Winterim Student

All graduates make plans and have dreams of where they are going in life after earning a Thunderbird MBA – just ask Scott Walker, class of 1981.  He knew he wanted to make money working in the finance field, but did not have a clear idea of where he wanted to go.  Little did he know where life would lead him! 

Mr. Walker was very successful early on in the banking industry, but the oil crisis in the 1980’s and the S&L scandals of the early 1990’s ultimately left him with neither a source of income nor his family.  It was at this low point that Mr. Walker decided to take matters into his own hands, vowing to take charge of his own future by working for himself instead of someone else.  He has not looked back since. 

A crucial first step Mr. Walker recommends in any entrepreneurial journey is the identification and acquisition of an advisor and mentor that you can learn from and respect.  While he partnered with his mentor during this stage, Scott challenges and recommends that everyone, including those who chose to work in the corporate world, find such a person to turn to in their professional life for guidance and advice.

A second recommendation Mr. Walker advises is to get out with people and be open to any possibility at all times.  Two different opportunities in his life presented themselves in this way: one was at a poker game in which he was recruited into a CFO position and the second was at a neighborhood Mexican restaurant where his mentor presented him with another business challenge involving unsatisfactory contract fillers.

A last critical point for Mr. Walker is the ethical and reputation factor.  Several times in his presentation, he categorically stated that certain lines were not to be crossed and as an example of living the mantra, the CFO position he garnered from the poker game ended when he refused to sign a 10-K that was wrong.  Even when he was asked about corruption during the Q&A session of his presentation, Mr. Walker was adamant that he would never tolerate corruption in business dealings as he considered it a “slippery slope” and he wanted to be “nowhere near it”.  A good reputation, Mr. Walker explained, is essential for continued success and necessary to earn the respect of your peers.      

Scott Walker’s last admonition is to not let money control decisions – and good thing for Thunderbird as the entrepreneurial center owes its’ existence to Mr. Walker’s generosity and success with BillMatrix, his first true start-up.

By Sampad Das ‘11, Entrepreneurial CEO Winterim Student

“When you are at the bottom, there is only one way to go –UP.” That’s how the morning presentation was started by Mr. Scott B. Walker. Mr. Scott B. Walker is a recognized entrepreneur, philanthropist and leader in the financial technology industry. His company, BillMatrix Corporation (http://www.billmatrix.com ), was an innovative, profitable and respected company in the industry. We were honored to have him as our first speaker. He gave some enlightening insight into entrepreneurship and managing start-ups. Some of the takeaway from the session was to “Never give up”. Mr. Scott gave some example from his experience how he faced the situations without complaining or whining was very commendable. Mr. Scott’s focus on “Recognizing value in simple ideas” was an eye opener.  It’s true that you don’t have to be a rocket science to be an entrepreneur; you can find value in simple ideas.

By Melissa Beran Samuelson, Clinical Instructor of Global Entrepreneurship

MBA students taking Ethics and Governance in fall 2010 got to work in groups and compete in the course’s Sustainable Innovation Project. The project came about as a result of a collaboration between myself and Jenny Cross, Director of Sustainability at Mohawk Industries, the leading flooring manufacturer in the world.  Recently the company has put a lot of effort toward setting sustainability goals in line with environmental and business values. I had met Jenny last spring at a conference where she talked about the business case for sustainability solutions at Mohawk.

As we connected over email, we talked about the issues that keep a Sustainability Director of a global company up at night.  This conversation turned into an idea to engage students directly in sustainability and stakeholder considerations by asking them to work on a project from Mohawk’s perspective.  This project gave the students real-world experience dealing with questions faced by managers and executives that would apply to any industry in the globalized economy.

Two sections of the class were asked to work on the question of how Mohawk Industries could effectively engage various stakeholders and manage stakeholder feedback.  Another two sections of the class worked on issues surrounding extended producer responsibility (EPR) in the carpet industry and how Mohawk might manage potential “government legislated” sustainability demands.
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By Ernesto J. Poza, Clinical Professor of Global Family Enterprise

You may be among thousands of families in business that attempted to hold informal family meetings over the holidays with business topics like succession planning and estate taxes. Are you happy with the outcomes?  Not likely. In most cases family members are cordial and enjoy sharing in the spirit of the holidays. But does anything really change?

Things took a turn for the worse for the three Turner brothers, who inherited a manufacturing business from their father more than 30 years ago. They are barely speaking to each other after their attempt at an informal holiday meeting. “The phone is for you,” is about all they have to say to each other.

It hasn’t always been like this. For most of the past three decades, they have gotten along rather well. They’ve had their differences and arguments, but important decisions were discussed until a consensus was reached.
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