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| CRBJ Home > February 2007 | |||||
Think forwardBy Kay Plantes
In the late 1980s, information technology giants such as IBM, Cisco and Microsoft created channel partners to reach companies with information technology needs similar to those of their enterprise (i.e., 1,000+ desktops) customers. Berbee, established in 1993 by Jim Berbee, is one of the few channel partners to reach significant size and stature - about $400 million with over 800 employees. Berbee leaders recognized, according to CEO Paul Shain, that "people do not buy technology in order to have technology. Technology is one part of a solution." Thinking forward to what customers would need as technology evolved, Berbee defined its business around services. In Shain's words "We don't sell technology. We solve business problems." Berbee built a stellar technical workforce that helps its clients choose the best business solution from a myriad of information technology options that serve to reduce costs, enhance service or support growth. A second example of thinking forward is building a data center. Berbee recognized that many companies lack the resource capacity to provide non-stop information solutions to associates and customers 24 hours a day around the globe. According to Shain, it takes five full-time people to staff just one 24-hour position. Berbee's data center hosts and manages information solutions Berbee designs for its clients, enabling Berbee to cost-effectively run its clients' information technology infrastructure. Alternatively, Berbee can supply clients with talent to create solutions clients manage at their own locations. Offering two delivery mechanisms helps differentiate Berbee from its competition. A third example of thinking forward was investing in operational and finance talent that could successfully acquire and integrate companies offering new customer bases and needed technical skills. "We are very disciplined with respect to price," Shain reported. "We never pay too much. You can't fall in love with a deal, after all, and succeed." The most notable example of thinking forward was Jim Berbee's recent decision to sell his company in order to build a significantly stronger position in a consolidating market. An extremely disciplined process identified the right buyer for Berbee's employees, owners and clients. "CDW, our new parent, completes our offering by enabling us to now take our solutions all the way to full execution on desktop computers, rather than stopping at the data center," Shain commented. Remembering that most acquisitions fail to succeed due to conflicting cultures, cultural fit was a key decision factor. Too many companies fail to see that industry consolidation demands significant strategy changes to build a defensible position. That founder Jim Berbee was proactive in this regard is not surprising. From the beginning, according to Shain, Berbee laid the foundations for successful growth by building the best work environment for IT talent and establishing values that empower employees to make the right decisions. He also built a strong board and management team that fully complemented his talents and interests. Together, they kept the company, according to Shain, "in front of high growth opportunities, making important and necessary investments when these expenditures were quite a stretch. We always thought big and thought forward." Think forward for your company. Three years from now, what changes will you wish your business had made today? Kay Plantes is a Madison economist, strategy consultant and executive educator. plantes@execpc.com madison.com ©2009 Capital Newspapers. All rights reserved. |
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