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Investment Control at the Technical Stage of a Startup

Posted: 01 Dec 2019 02:00 PM PST

I founded a quality assurance company in 2008 and, since then, we`ve worked on the number of projects with different levels of investment funding. Not only did these projects require multi-stage management, but product owners and investors also needed to maintain comprehensive control over progress.

Today`s competitive market leaves no options but to utilize the latest digital technologies to gain the edge over the competition. In attempts to reduce costs and accelerate product delivery, IT companies undertake a variety of initiatives. But often, instead of anticipated success, these initiatives bump into schedule, budget and development hurdles, turn into troubled projects and fail. 

Although Project Management Institute (PMI) reported a 20% decrease in project failure rates, the amount of money lost is still staggering. The report estimates nearly $97 million to be wasted for every $1 billion invested in the product.

Data from CIO estimates a 50% project failure in the IT industry. The Harvey Nash/KPMG CIO Survey found that weak ownership is one of the main reasons why 46% of IT projects never go live. This means the team lacks involvement from the executive level, while the process itself lacks sufficient control and support. However, the experience of our team says these issues aren`t the prior reason for failure. Unqualified ownership leads to poor monitoring of the development life cycle evident in 90% of the projects we`ve worked on. 

Why does project performance control matter?

Project performance control is a key aspect of successfully launching and growing a startup. Why? Because it works both ways.

  • As a product owner or investor, you`re on the safe side. 75% of IT teams anticipate project failure at the very beginning, according to Geneca research. What the survey says is that the issues of IT projects are usually hidden below the surface right from the start. That is the reason to take over monitoring the whole process, see the internal processes across the entire development chain and identify whether the project is safe for further investment.  

  • Improved performance. Over-optimism on project success still plagues the IT industry. Strong credibility of the executive level combined with the specific goals and expert development progress management would be an antidote for the team facing the challenge of over-optimistic expectations. 

What should product managers consider

The following tips are key for any project manager to keep in mind when working to successfully launch and grow a startup. Following these tips will help improve the quality assurance process and boost chances of success.

Calm down

The proactive approach is excellent, but chances are that rushing at the start results in work overload, delays and inconsistent development. The way any project begins defines its further growth. Rushing implies improper risk management, drawbacks in work planning and lack of communication. That`s why you must try to balance optimism with well thought out strategic planning. That's easier said than done, of course. It is possible, though, if you let your team participate

Mull your plan over

Sometimes to release a product means to roll out the services or hardware across the country and to support the software at the same time. While deploying a product to one location isn`t always hard, rolling it out simultaneously to hundreds of locations across the country is a different task. Moreover, complicated products require thorough, large-scale deployment planning. It means dealing with thousands of servers within a single release properly. These projects require more planning and more cooperation amongst the team. Lack of structure here leads to unexpected human resource needs, equipment or supply shortages and cost increases. Be ready to create a detailed plan and to adjust it daily. 

Listen to your IT specialists

Often, product managers aren`t that aware of coding, software architecture and testing specifics, while IT specialists help to pave the path for the project to grow. Planning is not only about predicting the results. Even the "genius level" idea requires professional feedback about the step-by-step development strategy. Present the concept to the dev & QA teams and make them involved in the project planning process. Ask questions, make sure each member understands the task, be ready to accept critical notes and modify the requirements. 

Consider alternative solutions

Managing a team means reaping the benefits of a diverse set of skills and approaches each member offers. Notably, the task of a product manager is to come up with the most efficient solutions for project growth and overcoming the challenges that arise. But I`m positive that input from project team members will add a surprising value. Listen to their contribution, discuss the options and agree together on the best way out. The ability to value opinions that differ will help to avoid vague project scope, budget shortages and miscommunication. 

Think of a methodology

Development strategy will define the way your product grows and profoundly impact the overall teamwork. The choice of Waterfall, Agile or any other model depends on the project type and scope. Whatever model is yours, it is crucial to respond to the modifications in project development. 

How can product managers make sure the project is on the right path?

Another significant measure for the successful project delivery is the efficient progress control. This aspect is of particular interest among the investors and product owners who`d like to be sure the business is worth investment. 

The assistance of a third-party software testing vendor might be a way-out for long- and short-term projects. Since such companies work with quality assurance (QA) engineers, they offer software QA expertise and provide an independent development progress overview. I will illustrate the way a QA company reports on the quality at each development iteration: 

  • Requirements and planning: While the dev team envisions the project, prioritizes the tasks and works on funding, QA engineers take part in initial environments and requirements setting. In this case, the project acquires approved requirements that meet the product owner`s vision. Moreover, testing early-stage defects is less costly. It is an effective preventive strategy from further complications in the software flow. 

  • Design and development: These are the stages of active software construction. While developers work to deliver the product per the initial requirements, QA engineers cover strategy and test plan. Here, the QA team works both ways: it ensures proper deadline management and tests the completed software parts. As such, product owners and investors are sure the features are ready as agreed and get a profound review on the software's critical and minor defects. 

  • Iteration final line: This is a result-analytical part of the process. Product owners and investors receive a brief overview of the feature performance quality. Usually, at the end of each development stage, QA engineers prepare a "round report" where the investors find the information about the objectives met, level of software quality and budgetary limits spent. 

How the involvement of QA helps?

Involving a QA team can provide significant benefits to a tech startup. These include:

  • Minimized risks of control failure: With the help of an independent QA vendor, investors get the unbiased review of the project flow and keep track of the way it develops under the current management system. Contracting with a QA company brings an objective feedback about the results achieved within the deadlines agreed. Once you find discrepancies in the vision of a product growth strategy, you leave. 

  • Funding and revenue risks eliminated: Project success isn`t always predictable: the expenses, complications in development and due date delays are aspects that must be encountered when you analyze potential profitability of the project. Moreover, the company may require additional funding for operating wastes, development of new software features and expansion of marketing strategy. Constant tracking of development unveils its blind spots. A QA company takes a back-up line to provide investors and product owners with a detailed analysis of project scope. In fact, the report will ensure whether it is worth further investment or if it`s high time to stop supporting the project. 

  • Fraud risks prevented: Misleading conduct is not new in the area of investment, especially when it comes to supporting immature business. Of course, legal agreements regulate corporate relations and help to manage conflicts, yet there is no guarantee to save investments. Often, investors get misled by the over-positive reports from the project board. In such cases, the QA provider takes the role of a back-up team to ensure the development strictly follows the road-map and reports depict real-life results. A timely third-party view prevents fraud and helps to protect investors from funding dead-end projects. You will have a clear picture of the team`s performance and their approach to business. 

Starting a project that will turn into a profitable business is no easy task. Again, competition on the tech market leaves no choice but to take a comprehensive approach to product development and its further growth. It`s always better to stop investing in a dead-end idea at its early stage. That is why I encourage investors and product owners to take every precaution on their way to success. 

 

 

 

 

The Small Business Owner's Guide to Data Analytics

Posted: 01 Dec 2019 10:00 AM PST

You can do it. Even though you operate a small business, you can take advantage of the power of big data analytics.

Big data technology is quickly transforming every field and industry. Resultantly, even business leaders who are generally slow to adopt new technology are curious about how they can use big data technology.

Businesses of all sizes – even small ones – want in on big data analytics, and the reason is apparent. It's because companies that leverage big data analytics tools enjoy 15% more sales than companies that fail to do so, according to the Georgia Small Business Development Center (SBDC).

Even though the economy is expanding at a rate of less than 3% each year, entrepreneurs who operate companies that range from small-to-midsized businesses (SMBs) to large corporations are capturing vital market share by leveraging big data analysis.

The small business case for big data

51% of small business owners believe that big data analysis is a must, but only 45% of them perform data analyses, according to a report published by the Service Corps of Retired Executives (SCORE). Furthermore, 73% of small business owners express that finding new customers is a top priority, while 63% rank retaining existing customers as a top issue.

Data analyses can help small business owners meet their goals. Nevertheless, many business owners believe that they don't have time to track analytics. However, it only takes a few moments of studying to learn how to use data to gain a competitive advantage.

Furthermore, you probably already have more than enough information to start a big data initiative without even realizing it. For instance, you can source information for data analysis from many places, including:

  • Email marketing reports
  • Sales Receipts
  • Social media analytics
  • Website analytics

This information, as well as data from other sources, can help you to find opportunities for improvement.

SCORE's report reveals that the use of analytics increases return-on-investment in marketing initiatives. In part, the organization attributes this to the fact that business owners who use data analytics eventually realize that they need to take good care of their customers if they want to retain them.

It's important to understand that adding data analysis to your marketing initiatives doesn't mean that you must absorb a significant expenditure for the privilege. Many analytics tools are free, such as those associated with social media business accounts.

Furthermore, you can review analytics information whenever and wherever it's convenient. Today, top social media platforms and other data analytics tools enable you to access reporting right on your smartphone via a convenient mobile app.

Setting the stage for high-tech analyses

If you want to get the most out of data analysis, you need to ask the right questions. It's nice to keep track of information such as sales, customer retention and gross revenue. However, these are vanity metrics. In other words, outside of goal setting, they do little more than boost your ego.

Resultantly, you need to dig deeper. You must ask insightful questions like "which vendors offer the most value?" or "what are our most troubled product lines that need improvement?" With more insightful questions, you can use data to review the granular details that reveal the consequences of your current operational practices.

If you have yet to perform any data analyses, you may worry that you don't have enough information to analyze. A more likely scenario, however, is that you have more information than you can handle. Most businesses struggle with the latter issue. As the amount of information that businesses and people generate expands by the day, big data systems grow increasingly relevant.

Today, most business owners can't hope to acquire any meaningful insight by reviewing data manually. However, you may have to start your information analysis initiative by manually integrating data sets into your system.

Gearing up for your data initiative

Big data isn't just a name. Data analysis involves evaluating a massive amount of information. Resultantly, it's essential to use tools that can handle the job. Also, you must use an effective method for your data analyses.

Non-technical staff may be able to glean some limited insight from data analyses. However, you need the expertise of a specialist to extract full value from your data sets. If a full-time analyst isn't in the budget, considering hiring a consultant who can point you in the right direction.

Furthermore, you want to learn more than statistical summaries of your data analyses. Instead, you need to understand what's causing the patterns in your data. A practical analysis will tell you just that. However, it's even more important to understand why the patterns occur.

You also want to know what may happen in the future and how you can act on that information. Technologies such as predictive and prescriptive analytics can help you to uncover insights that may reveal the future of your business environment.

The right tools for the job

The latest buzzword regarding big data systems is real-time analytics. Data analysis gives executives guru-like powers by empowering decision-makers with critical insights in real-time and on-demand via an executive dashboard.

An executive dashboard eliminates the need to task an IT specialist for a report. Furthermore, there are executive dashboard tools available that small businesses can use to access information whenever needed.

Today, executive dashboards can enable you to access business intelligence tools on-the-fly and on the go. With the ability to access vital information via smartphone, laptop or any other device of choice, you and your team can access actionable and current data that enables you to outdo the competition. Furthermore, you can use an executive dashboard to corral disparate data sources into one dynamic display.

Even if you run a small business, you probably generate more than enough information to take advantage of big data systems. When you consider all your opportunities to gather information, the prospects for analysis are probably overwhelming.

If you think about it, your business probably has a ton of spreadsheets, database information and an information packed customer relationship management (CRM) tool. You can use these data sources in combination with commercially available data sets and free tools such as Google Analytics. A robust tool such as Datapine can help you tie all these disparate sources together cohesively.

Big data visualizations and reporting

Once you've analyzed your data, you need to present it in a way that non-technical personnel can understand and use to make informed decisions. Accordingly, you must investigate data visualization tools that will work with your current technologies.

Of course, you can use trusted productivity tools such as Microsoft Excel and Microsoft PowerPoint to create presentations, but they're woefully limited. Alternatively, an interactive executive dashboard enables stakeholders of all technical skill levels to engage information quickly. Furthermore, it will enable you to present visually compelling presentations.

There are many free and open-source big data tools that you can use to launch your company's business intelligence initiative. Today's free or low-cost analytics tools enable small business owners to access and share information effortlessly.

You'll be surprised by how fast you'll reap a return-on-investment by taking advantage of an executive dashboard. By choosing the right business intelligence tools, you can level the playing field in a highly competitive marketplace. Moreover, you'll enjoy the benefit of making well-informed, on the spot decisions that can lead your organization toward success.

An Accessible C-Suite Can Help Fuel Brand Success

Posted: 01 Dec 2019 05:00 AM PST

Making executives accessible and working directly with employees gives businesses the legs to launch a brand into unmatched success. At RNR Tire Express, we've built our company culture on empathy, openness and accessibility to fuel the brand's success.

Over the last few decades, employees' outlook and priorities have shifted causing a change in the way that companies operate on the day-to-day. As millennials and gen Z take over the workforce, they are bringing new perspectives into the business world. They are likely to value culture and lifestyle more than other generations that have come before them.

Today's employees expect a productive, engaging, enjoyable work experience that fits into their lifestyles and matches their personalities. Now more than ever, employees are demanding more than just benefits and perks – they want to be part of a community that makes a difference and they want to work for a company they can stand behind.

Many know that employee engagement is key to reducing turnover and ultimately boosting profitability. However, research shows that still less than 30% of employees are engaged at work. To better retain quality talent, leaders should strive to find ways to make their employees feel valued, while at the same time showing them how they are making an impact. To start, employers should make their teams feel valued by steering clear of manager-led communication entirely. If managers are restricted to top-down, one-way communication with their employees, productivity, innovation, and retention will all drop significantly.

The relationship between a CEO and their employees should be built on mutual trust, respect and communication. Offering all of these gives a company a unique strength and a competitive edge to succeed among competitors in a tight labor market. The following guidelines have helped RNR Tire Express to create a company culture built on open communication:

  • Empathize with employees to improve performance and productivity
  • Exceed expectations of availability
  • Success and innovation start at the bottom

Empathize to improve employee performance

Historically, work and happiness have not always gone hand-in-hand. Careers have been reduced to a means to financial success. However, younger generations are placing more emphasis on wellness as a whole – meaning that all aspects of your life should bring you happiness and mental wellbeing. As a result of this mindset shift means that employers need to create a work environment that cultivates a healthy and happy culture to maintain a high-functioning workplace.

As a leader, effective communication in a wellness-promoting workplace comes down to one rule: Empathy. Think about your people, their needs, put yourself in their shoes. As a leader of an organization, it is your responsibility to understand your employee's sentiments. Are they unhappy? If so, why? What can you do to help fix it?

One of the most important things to know about running a business is understanding the needs of your people, without the right people on board, a business can't achieve its growth goals. Once you can understand things from their vantage point, then you can effectively lead your team and set them up for success.

Company culture is one of the greatest assets when it comes to the evolution and growth of your brand. Since employees are the heart of your company, it is essential to ensure that each one feels valued and recognized for their hard work. This will motivate them to continue taking the brand to new heights, ultimately achieving your long-term vision and goals.

Learning how to develop a rapport with your employees takes time and implementing and refreshing your company culture will not happen overnight. The more you interact with your team, the more you will get to know them on a personal level to be able to show them empathy in the workplace. Employees will soon see the difference, and in return embrace the new more connected and compassionate workplace culture.

Make executives accessible to all employees

Gone are the days when CEOs were sitting locked away in an ivory tower. When executives are restricted to their corner office with little to no interaction with entry-mid-level staff, the workplace starts to feel inauthentic. Little access to leadership can also have a negative effect on an employee's motivation since they don't have an opportunity to see the organization's core values exemplified in the leadership team or to hear the company's goals directly from the top. When executives make themselves accessible and work directly with employees, they are given an opportunity to launch their brand into unmatchable success.

That is why our company's vice president, Vince Ficarrotta, at RNR Tire Express, is everywhere. He spends weeks traveling the U.S. to all our company grand openings. He often appears as an unofficial pirate mascot, Captain Jack "Spare." That's because we want to celebrate our Tampa roots. In fact, we are known for our annual Gasparilla pirate festival.

Captain Jack "Spare" is often shouting Ahoy mates! Come check out your new "Arrrrrh n' Arrrrrh!" This tactic gives our franchise partners the opportunity to build a relationship with the executives, like Ficorratta. It's not just an office meeting, either. It's a fun, personal and more human interaction that we hope evokes smiles, laughter and a positive feeling.

You don't necessarily want to encourage your executives to dress up like a pirate to hang out with employees, but you do want to ensure executives are accessible and human. As companies grow and add staff members, departments and more, an open-door policy reminds all employees they are all working together for a common goal.

Looping C-Level executives in to what the company's employees are talking about, the strategy can help boost morale and ultimately helps boost innovation, not to mention that it lets employees know that the executives are a part of the team. Breaking down that hierarchical barrier reassures your employees that they are recognized. While leadership may begin with senior-level management, everyone's opinions are being valued to make decisions for the greater good of a company's culture.

Company growth and innovation start at the bottom

Driving the company forward means all-hands-on-deck, it can never be accomplished alone. The moment that employees become discouraged from sharing ideas or criticism is the moment your business will fail. Work to build a culture where all employees have a voice and their voices can be heard by the decision-makers. Collaboration between C-Suite executives and employees at the ground level can be vital for keeping a company ahead of the competition and on the pulse of everything happening in an industry. The relationships formed can help establish trust, confidence and a personal relationship with senior management which can greatly impact productivity and innovation.

Some of the best ideas come from employees with boots on the ground, as they're the ones in the weeds of the day to day workflow, understanding what works and what doesn't and providing valuable insights to help create a more efficient workforce. Through a positive work environment, more productive results are possible and growth is inevitable. Empathizing with employees, learning their wants and needs and valuing each employee's input ensures that a company can sustain growth for the long haul.  

 
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