Leveraging IT for productivity and growth: Jay Holstine

Helping business leaders reach new levels of productivity, in the midst of great change, was the focus of Jay Holstine’s CEO peer group. The Dallas-based Vistage group, from non-competing industries, enables these 18 CEOs to hear expert speakers, and share ideas with each other. “Our workshops feature industry experts, providing new data, resulting in lively discussions among the CEO peer group,” Holstine said. “In our recent workshop members discussed ways to advance efficiency, in order to direct capital to areas where it can provide strategic growth options, and increase enterprise value. “Cross-functional IT integration was a topic that gathered a lot of interest,” Holstine said. “Particular CEOs shared that the digital integration across functions is helping their companies gain productivity far beyond simply improving each department individually. Optimizing all their operations systems is more than just automating routine work. Many of the interactions are simplified, and mistake-proofed, from communications and orders, to incorporating logistics to expediting deliveries,” Holstine said. “Most agree that Integrating areas of IT can help coordinate customer requirements, overall planning and supply chain. And several CEOs discussed the offloading of assets like transportation fleets, warehouses, IT servers, as digitalization optimizes their overall business models.” “Our group sees these improvements in productivity as a better path to growth, than merely cutting costs. The tools for IT integration are now so much more affordable, that companies are investing in it to stay competitive,” Holstine said. “One of the members pointed out that these types of improvements can really enhance enterprise value, to position a company better for funding expansion with outside capital. Providing several quarters of improvement gives potential investors and buyers confidence that these efficiencies are sustainable, and not just short-term measures taken as transaction-related show. “While identifying the best efficiencies that fit each CEO company, is what we focused on in this workshop, in every meeting, our CEOs depend on the shared wisdom, great research, practical experience, and ideas, that help their companies succeed,” Holstine shared. https://linktr.ee/JayHolstine https://www.trepup.com/jayholstine https://jayholstine.mystrikingly.com/ https://jayholstine.blogspot.com/ https://soundcloud.com/jayholstine https://issuu.com/jayholstine https://www.xing.com/profile/Jay_Holstine3/portfolio

New Strategies for Growth Capital: Jay Holstine Workshop

Jay Holstine shared how his Dallas-based Vistage CEO peer group helps business leaders capitalize on change, and attain new levels of productivity. “Our workshops feature expert speakers, followed by discussions among the CEO peer group,” Holstine said. “We’re seeing that, while leaders are a little more risk-averse, they’re still looking for capital for strategic growth. One of our members shared that he sees funding as the primary challenge in these efforts. Even prior to the pandemic, companies were trying not to take on too much debt, or dilute equity. After having accepted federal Payroll Protection Plan support, or drawn on lines of credit, many company leaders are reticent to go to their banks again. But they don’t want to miss out on unique growth opportunities,” Holstine shared. “The focus is in finding ways to advance efficiency, in order to free up capital, so that it can be directed to areas where it will create revenue, provide strategic growth options, and increase enterprise value,” Holstine added. “Most members agreed that major changes in the workforce in 2020 deeply affected the ways in which companies are running. Leaders are seeing more latitude in organizing people and finances, and they are looking for advances in productivity and efficiency,” Holstine said. “One CEO surmised that the budget dollars being lost to inefficiency could be going toward growth,” Holstine said. “Most agreed that instead of depleting the organization by cutting costs across the board, there are better approaches toward strategic efficiency, in order to still maintain growth” Holstine shared. Most feel it’s wiser to find opportunities to maximize outputs, as well as reduce inputs, and to derive more value from all the assets, not just the workforce,” Holstine said. Working Capital Optimization “A highlight of the workshop discussion was that the most practical capital you can access is your own money that’s tied up in the bills you pay too soon, your own receivables you collect too slowly, and your own unnecessary inventory,” Jay Holstine said. “Most of the CEOs said they underestimate how much working capital their companies use. Improving the use of their payables, receivables and inventories, most say, can provide a significant amount of interest-free capital to use in growth efforts,” Holstine shared. “In supplier and trading agreements, many companies have more leverage with their big customers than they used to, especially if they’re providing critical components and materials,” Holstine added. “Some other comments involved financial planning and analysis. It’s important to use real-time analytics for more informed business decisions,” Holstine said. “By linking sophisticated load-planning software with its ledger of customer commitments, companies are able to optimize their service capacity to their more profitable, valuable customers,” Holstine said. “A variety of cost-saving opportunities came from workforce shifts caused by the pandemic. The reduction in travel has given us a much greater use of virtual meetings, new modes of communicating, new expectations in sales and marketing, and reduced travel budgets,” Holstine shared. “Officing is another financial opportunity to consider. With office vacancy rates at an all time high, it’s wise to negotiate lower rents and reevaluate your officing needs as a whole. The new hybrid work culture has benefits that your workforce wants to keep, and it enables companies to hire beyond their traditional geographic footprint,” Holstine said. “Identifying the best finance strategies, and finding solutions in efficiency that fit each CEO’s company, is what we focused on in this workshop, but in every meeting, our CEOs depend on the shared wisdom, great research, practical experience, and ideas, that help their companies succeed,” Holstine shared. https://linktr.ee/JayHolstine https://www.xing.com/profile/Jay_Holstine3/portfolio https://www.trepup.com/jayholstine https://jayholstine.mystrikingly.com/ https://jayholstine.blogspot.com/ https://soundcloud.com/jayholstine https://issuu.com/jayholstine

Grow leadership using Analytics instead of Instincts: Jay Holstine

“Vistage CEO group workshops are especially vital to new leaders, “ Jay Holstine said, in sharing how his Dallas-based CEO peer group helps business leaders capitalize on change, and attain new levels of productivity. “Whether it’s building the right team, identifying the best finance strategies, or the right markets in which to expand, the interplay of smart ideas is vital to finding solutions that fit each CEO’s company,” Holstine added. “Our CEOs depend on market experts, as well as the group’s shared wisdom, practical experience, and ideas, to help identify new ways teams and companies can work more successfully,” Jay Holstine shared. “The group’s discussions are continually enriched with speakers from various disciplines, along with new research, and the group’s sharing of their own challenges and experiences,” Holstine added. “While some of our CEO members have been in this role for more than four years, a good portion are within their first four years as CEO,” Holstine said. The consensus is that, coming into the role, it’s important to learn what’s working well, as opposed to bringing in a wholesale new slate of changes” “While a recent workshop focused on understanding the various facets of the company, from markets, customers, partners, human resources, and how they work together as a whole, it’s also important to prioritize your focus, avoid micromanaging or doing the things you should be delegating” Holstine said. “Having the right people in the right roles makes all the difference. It’s vital to find the best uses for your top talents to help boost their productivity, their value within the staff and ultimately, the company’s efficiency. Several members of our group us Culture Index to measure seven work-related traits inherent in all people to make executives effective. The seven traits are: Autonomy, Social-Ability, Patience, Conformity, Energy Units, Logic, and Ingenuity. One CEO offered, that it’s part of the natural course of business for areas of the company to fluctuate with changes in the market, have successes and failures, learn, regroup, and rebuild. It’s important to expect some turbulence, balance the emotions and work productively on solutions. The group agreed that serving as an executive is about providing confidence and stability through the challenges. Guard yourself from reacting too erratically, or quickly. Keep the long-term perspective for the best viability of the business. “Good leadership is more about optimizing your team, not just managing their production. If your team knows you have confidence in the plan, and you faith in the team, their performance and productivity will rise to this occasion,” Holstine shared. “Our Vistage CEO peer group is aiding in the inspiration of these leaders in workshops, and in the established rapport between meetings. We know that a vital part of leadership is not just growing the skills of your staff, but also continuing to develop your own capabilities,” Holstine said.

Growth capital strategies: Jay Holstine

Leading their companies through an unstable business landscape, CEOs of mid-market companies are poised for growth and watching for new opportunities, ready to respond to pent-up demand and potential new opportunities. “It takes agility and good business sense to shift to new strategies. Our CEOs are enriched by the research and shared experience that they glean in our workshops and discussions” Jay Holstine said, in sharing how his Dallas-based Vistage CEO peer group helps business leaders capitalize on change, and attain new levels of productivity. “Whether it’s: identifying the best finance strategies, or the right markets to expand, the interplay of smart ideas is vital to finding solutions that fit each CEO’s company,” Holstine added. “Our CEOs depend on the shared wisdom, the shared research, practical experience, and ideas, that help identify new ways that teams and companies can work more successfully,” Holstine shared. “In our new, altered economy, many companies are positioning themselves to grow their market share, acquire a competitor, or redesign their own offerings. With predictions of U.S. economic growth at over 6%, companies are identifying ways to ride this wave,” Holstine said. The consensus may be a little more risk-averse, but it’s still looking for capital and poised for growth One of our members shared that, in this environment, he sees funding as the primary challenge in these efforts. Even prior to the pandemic, companies were careful not to take on too much debt, or dilute equity. Having drawn on lines of credit or received federal Payroll Protection Plan support, many company leaders would rather not go to their banks again. But without capital, they risk missing out on unique growth opportunities. “Members agreed that the challenge is developing alternative ways to fund growth. While previous discussions often involved cost reduction with the aim of greater efficiency, the top priority is growth. The focus is in finding ways to advance efficiency in order to free up capital so that it can be directed to areas where it will create revenue, generate strategic growth options, and increase enterprise value,” Holstine added. Some of the key take-aways were: that although they had strong demand and adequate capital, it was human capital that they were lacking in 2021, a dilemma affecting their whole industry and exacerbated by regulation. He said his company was not going to reach its growth and financial goals without major strides in productivity and efficiency. Essentially, the budget dollars they were losing to inefficiency could have been better directed and used for growth,” Holstine relayed. Instead of searching for efficiency by cutting costs in ways that ultimately defund growth and leave an enterprise depleted, there are better approaches toward strategic efficiency and growth at the same time. Productivity is basically outputs divided by inputs, (such as investments in technology, inventory and capital equipment.) Instead of letting the quest for productivity turn into a cost-cutting effort, it’s better to find opportunities to maximize outputs, as well as reduce inputs, and to derive more value from all the assets, not just the workforce. Focusing on profitable customers is one way to get more value from less effort. Marginal customers tend to take a larger amount of time, energy, and assets, yet deliver less to the top line. By prioritizing the more valuable customers and linking sophisticated load-planning software with its ledger of customer commitments, companies are able to optimize their service capacity. Working Capital Optimization A highlight of the workshop discussion was that the most sure and easy capital you can access is your own money that’s tied up in bills you pay too soon, your own receivables you collect too slowly, and your own unnecessary inventory: Most of the CEOs said they underestimate how much working capital their companies use. Improving the use of their payables, receivables and inventories can provide on average $10-$20 M in interest-free capital to use in growth efforts. In trading agreements, mid-market companies have more leverage with big customers than they think, especially if they’re providing critical components or raw materials. Financial planning and analysis is often an untapped area for finding revenue. If the finance team lacks the right capabilities and tools, it can waste time simply fixing data issues and explaining variances in routine reports, instead of driving real-time analytics for more informed business decisions. A variety of cost-management opportunities stemmed from changes caused by the pandemic. Ultimately, the reduction in travel spawned a new era of virtual meetings, new modes of communicating, sales and customer expectations, in place of significant travel budgets. Reconsider your actual real estate needs and act. Office vacancy rates in major cities are at an all time high. Now is the time to negotiate lower rents. The new hybrid work culture has benefits that your workforce wants to keep, and it enables companies to hire beyond their traditional geographic footprint. Cross-functional IT integration is one of the more important opportunities. Beyond just automating routine work, there are advantages in digital integration across functions, enabling companies to optimize operations, logistics, marketing, and other systems as a whole. Tools to do this are now so much more affordable, they are becoming detrimental not to have. For example, transportation companies are bringing together IT areas, to coordinate customer commitments, load planning, and route optimization. Optimizing the whole system generates productivity gains well beyond what can be attained by improving each element alone. The general thought is that if leaders can offload assets like transportation fleets, warehouses, IT servers, they can glean significant gains in productivity through digitalization’s transformation of their business models and balance sheets. These improvements in productivity can fund growth more effectively than mere cost cutting. And they can greatly enhance enterprise value, to position the company better for funding expansion with outside capital. Demonstrating several quarters of improvement gives potential investors and buyers confidence that these efficiencies are sustainable and not short-term measures taken as a transaction-related show. The success of these major implementations depends on leaders building buy-in across their organizations and engineering the growth. They must communicate the value of changes, and the phases and the expected outcomes. The resulting enhancements will facilitate a culture of cost management, with long-term growth and profitability.