A good Wall Street Journal Article lists four rules for Clean-Technology Start-ups to succeed – but every business is either already thinking about or implemented these strategies. I’m not saying that these four rules are the ONLY rules, not am I [...]]]> Tweet

A good Wall Street Journal Article lists four rules for Clean-Technology Start-ups to succeed – but every business is either already thinking about or implemented these strategies. I’m not saying that these four rules are the ONLY rules, not am I suggesting that these ideas aren’t valuable – I am stating that these four strategies are critical to any strategy for any business.

So mid-size and large global businesses should take head. If you’ve already implemented these ideas – reassess them. How long ago was the last time you reviewed these decisions? How completely did you execute these plans – if you’ve completed them at all at this point.

Rule #1: Diversify. Especially if you’re business relies on regulatory and government policy. Even the largest global businesses diversify to offset any sudden changes in policy – just look at the airline and weapons industries, there are plenty of examples there to choose from. Diversify doesn’t always mean making a new widget for a new market. Diversify could include finding and working with a near-like business in a vertical that you want to move into – and finding a business over there that wants exposure to your vertical – and Viola!

Rule #2: Cost of Goods. Viciously attack inefficiencies and high costs in your supply chain. While the article states that your supply chain should look for the lowest component price, globally, at times that is not possible. There are other options to lower the cost of the supply. Taking a very focused look at costs – all costs – should be paramount. There are situations where the cost of production is cheaper nearby than outsourcing to a foreign country’s resources. One example is if the parts and manufacturing are better suited for a local knowledge, i.e. financial services software manufacturing is more likely to be faster – and potentially – cheaper locally in the United States for U.S.-specific purposes, and subsequently, the same could hold true for other markets.

Rule #3: Depending on the level of technology required, invest in innovation and technology. The article calls out Suzlon as one business that has innovation centers situated globally. I can understand that multiple innovation centers could accelerate technology advancement more than a massive single location, especially if those centers are located in regions with an appropriately high level of technology education and skills.

Rule #4: Which extends the final point above in #3: Invest in the people. Ideas do not come from programs, processes, and rules – it comes from people solving problems.I’m going to add a corollary #4a: challenge people. Let them show what they can do – and reward them for doing well, and don’t punish for failures.

Failures are the seeds of Success.