Show Notes: Stephan Meier, a professor at Columbia Business School, is the author of the book "Employee Advantage." He teaches the business strategy core class, which is required for all MBA students. Stephan also teaches an elective on the future of work, focusing on how treating employees and labor interacts with technology and business strategy. Stephan conducts international trips to African countries, such as Ghana, South Africa, and Kenya, to provide students with international experiences and perspectives on businesses, strategy, and different environments. His focus is on putting workers first to help businesses thrive. The conversation turns to Stephan’s book and the concept of the workplace and business strategy. He mentions how the pandemic brought the workplace under the spotlight and technology use ramped up, while at the same time, Stephan was teaching a class on the Future of Work. The conversation turns to the concept of putting workers first as a key element of business success, and how the business language reveals the mode of managing the employee base. This outlook has led to a large divide between employee and employer. According to Gallup surveys, about 65% of Americans are not engaged at work, and this number is even higher worldwide. Stephan also talks about customer centricity and how employee experience is crucial for both innovation and customer satisfaction. The Employee First Approach Stephan cites Jeff Bezos, and Amazon as examples of organizations that prioritize employee satisfaction. Amazon's CEO Jeff Bezos believes that learning from dissatisfied employees can lead to continuous improvement and better business outcomes. This mindset is also seen in other industries, such as Costco in the US, which provides clear career paths, communicates clearly, and promotes internally. DHL Express, for two years in a row, was named the best employer in the world on the best workplaces in the world list for two consecutive years. They put employees first because they realized that turnover is terrible and happy employees are more engaged and leads to satisfied customers. They changed aspects of communication, listening, training, and career path within the organization, leading to financial success. How the Employee/Customer Centric Approach Wins Stephan discusses the importance of treating employees well and putting them first at the margin when making trade-offs. He talks about Starbucks, where the company's customer-centric approach has led to a loss of a customer-centric environment. He talks about how this could be improved. Stephan also emphasizes that both customers and employees are critical stakeholders that create value within the organization. Companies that prioritize their employees are more likely to be successful. This is because they have a strong focus on competence, which is encouraged by offering the right tasks that push employees optimally. This is crucial for motivation and retention, as people often leave organizations when they don't learn anything new. How Successful Companies Prioritize Employees Stephan states that companies strive to differentiate through a customer-centric approach, but he goes on to explain that the employee-centric and the customer-centric approach are often interchangeable. He offers examples of companies that prioritize their employees including Costco, DHL Express, and MasterCard. Microsoft uses an AI-powered tool called Unlocked, which allows employees to choose projects they want to participate in and matches them with opportunities within the company. This approach not only improves the internal market but also creates a better experience for employees. Companies like KKR, which invest heavily in portfolio companies, implement ownership programs, which give employees stock options as a start. To differentiate between companies that prioritize their employees, companies should consider metrics such as engagement level and turnover rates. By focusing on these early indicators, companies can better understand their commitment to their employees and work towards creating a healthy workplace culture that leads to productive and engaged workers. How to Build an Employee-centric Workplace Stephan suggests that companies should start by focusing on what they do with customers and how they do it with employees. They can use ideation workshops to understand customer needs and differentiate themselves from competitors. For example, Eli Lilly applied customer journeys to employees, focusing on their experiences and moments that matter. This approach helped them get more people promoted and had a significant impact on their business. Stephan recommends designing workshops to help employees think about ideas and motivations, as well as redesigning processes and procedures within the organization. By doing so, companies can better understand their employees' needs and preferences, leading to a more engaged, productive, and innovative workforce. Timestamps: 04:09: Development of The Employee Advantage 04:29: Counterintuitive Claims and Examples of Employee-Centric Companies  12:29: Balancing Employee and Customer Centricity  15:01: Practical Examples of Employee-Centric Companies  19:44: Criteria for Identifying Employee-Centric Companies  23:23: Industry-Specific Considerations  27:30: Consulting Approach for Implementing Employee-Centric Strategies  Links: Website: <a href= "https://www.stephanmeier.com/">https://www.stephanmeier.com/</a> Stephan’s Book: <a href="https://www.stephanmeier.com/book/the-employee-advantage">The Employee Advantage</a>   Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at <a href="http://www.umbrex.com.">www.umbrex.com.</a>

<description>&lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Show Notes:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Stephan Meier, a professor at Columbia Business School, is the author of the book "Employee Advantage." He teaches the business strategy core class, which is required for all MBA students. Stephan also teaches an elective on the future of work, focusing on how treating employees and labor interacts with technology and business strategy. Stephan conducts international trips to African countries, such as Ghana, South Africa, and Kenya, to provide students with international experiences and perspectives on businesses, strategy, and different environments. His focus is on putting workers first to help businesses thrive.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The conversation turns to Stephan’s book and the concept of the workplace and business strategy. He mentions how the pandemic brought the workplace under the spotlight and technology use ramped up, while at the same time, Stephan was teaching a class on the Future of Work. The conversation turns to the concept of putting workers first as a key element of business success, and how the business language reveals the mode of managing the employee base. This outlook has led to a large divide between employee and employer. According to Gallup surveys, about 65% of Americans are not engaged at work, and this number is even higher worldwide. Stephan also talks about customer centricity and how employee experience is crucial for both innovation and customer satisfaction.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;The Employee First Approach&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Stephan cites Jeff Bezos, and Amazon as examples of organizations that prioritize employee satisfaction. Amazon's CEO Jeff Bezos believes that learning from dissatisfied employees can lead to continuous improvement and better business outcomes. This mindset is also seen in other industries, such as Costco in the US, which provides clear career paths, communicates clearly, and promotes internally. DHL Express, for two years in a row, was named the best employer in the world on the best workplaces in the world list for two consecutive years. They put employees first because they realized that turnover is terrible and happy employees are more engaged and leads to satisfied customers. They changed aspects of communication, listening, training, and career path within the organization, leading to financial success.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;How the Employee/Customer Centric Approach Wins&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Stephan discusses the importance of treating employees well and putting them first at the margin when making trade-offs. He talks about Starbucks, where the company's customer-centric approach has led to a loss of a customer-centric environment. He talks about how this could be improved. Stephan also emphasizes that both customers and employees are critical stakeholders that create value within the organization. Companies that prioritize their employees are more likely to be successful. This is because they have a strong focus on competence, which is encouraged by offering the right tasks that push employees optimally. This is crucial for motivation and retention, as people often leave organizations when they don't learn anything new.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;How Successful Companies Prioritize Employees&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Stephan states that companies strive to differentiate through a customer-centric approach, but he goes on to explain that the employee-centric and the customer-centric approach are often interchangeable. He offers examples of companies that prioritize their employees including Costco, DHL Express, and MasterCard. Microsoft uses an AI-powered tool called Unlocked, which allows employees to choose projects they want to participate in and matches them with opportunities within the company. This approach not only improves the internal market but also creates a better experience for employees. Companies like KKR, which invest heavily in portfolio companies, implement ownership programs, which give employees stock options as a start. To differentiate between companies that prioritize their employees, companies should consider metrics such as engagement level and turnover rates. By focusing on these early indicators, companies can better understand their commitment to their employees and work towards creating a healthy workplace culture that leads to productive and engaged workers.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;How to Build an Employee-centric Workplace&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Stephan suggests that companies should start by focusing on what they do with customers and how they do it with employees. They can use ideation workshops to understand customer needs and differentiate themselves from competitors. For example, Eli Lilly applied customer journeys to employees, focusing on their experiences and moments that matter. This approach helped them get more people promoted and had a significant impact on their business. Stephan recommends designing workshops to help employees think about ideas and motivations, as well as redesigning processes and procedures within the organization. By doing so, companies can better understand their employees' needs and preferences, leading to a more engaged, productive, and innovative workforce.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Timestamps:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;04:09: Development of The Employee Advantage&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;04:29: Counterintuitive Claims and Examples of Employee-Centric Companies &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;12:29: Balancing Employee and Customer Centricity &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;15:01: Practical Examples of Employee-Centric Companies &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;19:44: Criteria for Identifying Employee-Centric Companies &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;23:23: Industry-Specific Considerations &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;27:30: Consulting Approach for Implementing Employee-Centric Strategies &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Links:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Website: &lt;a href= "https://www.stephanmeier.com/"&gt;https://www.stephanmeier.com/&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Stephan’s Book: &lt;a href="https://www.stephanmeier.com/book/the-employee-advantage"&gt;The Employee Advantage&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;span style= "font-size: 10pt;"&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at &lt;a href="http://www.umbrex.com."&gt;www.umbrex.com.&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt; &lt;/p&gt; &lt;p&gt; &lt;/p&gt;</description>

Show Notes: Stephan Meier, a professor at Columbia Business School, is the author of the book "Employee Advantage." He teaches the business strategy core class, which is required for all MBA students. Stephan also teaches an elective on the future of...

604. Stephan Meier, Author of The Employee Advantage

Show Notes: Dori Yona, founder of Simple Closure, explains the process of shutting down a company. The process is painful, manual, and bureaucratic, with an average time of nine to 12 months. It can cost companies thousands of dollars or even hundreds of thousands of dollars in fees. Many companies end up doing it incorrectly, leading to fines and penalties. The Multiple Moving Parts of a Business Shut Down Dori explains that the main difficulty in shutting down a company is the coordination of multiple moving parts, such as the state of incorporation, IRS, lawyers, accountants, payroll provider, vendors, service providers, investors, payroll, and state departments. The average shutdown for a venture-backed company has about 95 moving parts, and if any of them are missed or not done correctly, the process can drag on and on. First Steps in Shutting Down a Business Dori talks about three typical approaches for a shutdown of a firm, which they categorize into three main “buckets”.  The first bucket is companies that reach out six to nine months before they need to shut down, as they are running out of cash and trying to raise another round or convince existing investors to invest more in their company. They want to be ready for what happens if it doesn't work out, so they reach out to the Simple Closure six months before to discover what the process involves. Dori mentions the Shut Down calculator his firm developed and put on their website to help business owners work through costs and assess the time they have left before going into the red and complicating the shut down. Bucket number two is when companies decide to shut down immediately, need quick media advice, need help presenting to the board, or with winding down the business. Bucket number three is when companies have shut down operationally six months or a year ago but never dealt with properly winding down the business. They may face penalties, fines, and liens on their personal property due to improper actions. The Financial Reality of Shutting Down a Business Dori emphasizes that it is not easy to walk away from a company, as it can come back and haunt the owner(s). He explains that while a corporate entity is there to protect board members, investors, and founders,  if certain things are not done properly, it can pierce the corporate veil, making the board and founders personally liable and potentially sued. The most common issue is wages, where an employee is owed wages and has not been paid. Companies should make sure that the proper winding up process is done to avoid loose ends and potential lawsuits from stakeholders, such as vendors, investors, state departments, and payroll departments. Dori also stresses the importance of considering investors during the shutdown process. Payroll Providers and the Shut Down Process  A company's shutdown process involves understanding the number of employees it has and how to properly shut down them. Dori uses a typical seed stage company as an example. This type of company usually has around 15 to 20 employees at its peak, with a few founders and one more engineer or person. To properly shut down the company, it is crucial to know who is currently on payroll, whether full-time or contractors, and how many employees the company had at its peak across different states and locations. Most startups use payroll providers, but they are not good at shutting down payroll accounts. When a company shuts down, they terminate the relationship between themselves and the payroll provider, this does not mean the payroll provider has closed down all accounts in all states. To help close out all accounts and notify all states, companies should ask for the HRIS census, which provides background and history of employees. Analyzing this data helps determine who is a past employee versus an active employee. The discussion explores the issue of 1099s for companies that are about to shut down, such as those in the US. Dori explains that the ultimate goal is to close out all accounts and notify all states, as every state operates differently and how to shut down accounts for active and non-active employees, and contractors. Technology that Automates and Scales the Shutdown Process The goal of Dori’s company is to build a technology solution to automate and scale the process of closing out payroll departments. The company aims to be the TurboTax shutting down platform, providing a platform for companies to easily close out their payroll departments. He mentions that the company has built automations to automate various processes, such as faxes, phone calls, emails, and online forms. However, there are many AI solutions available today, such as outbound SDR and AI calls that can call in and provide basic account information. The company's goal is to develop a platform that allows companies to easily close out their payroll departments and help streamline and automate the process. Dori also talks about shutting down repeat services such as subscriptions.  Three Main Phases of a Company Shut Down The winding down of a company involves three main phases: dissolution, wind up, and shut down. In Delaware, the first phase involves notifying the state and other entities, such as shareholders, board, and employees, about the decision to shut down the company. This involves notifying the state, preparing franchise taxes, filing the certificate of dissolution, and canceling the EIN. The second phase is the winding up phase, which involves unwinding payroll, paying out vendors, collecting invoices, and dealing with accounts receivable and payable. After the dissolution phase, the company must file a final tax return, distribute any remaining money to investors or creditors, and close out bank accounts. The third phase is the shutdown phase, which involves closing out bank accounts and sending out certificates of closure to investors and shareholders. It's important to have an export of all contracts with vendors and understand their options for cancellation. This process depends on the type of vendor and the company's capital. Dori shares information on how to deal with vendors during the shut down process. The Legal Requirements of Data Retention  The conversation turns to the importance of data retention and the value of company data and IP. Dori talks about the importance of understanding the industry and company type, such as healthcare companies needing to keep patient records for seven years post-shutdown. Dori recommends using data custodians to store these records in a safe place, adhering to protocols and encryption levels. He also discusses the need for tokenization around the store to ensure a safe and secure process. On the IP side, Dori explains how founders can monetize their IP after the company shuts down. Delaware law states that winding down the business should maximize value for shareholders, as it is the shareholders' company. They can either acquire the IP or sell it, depending on the situation. They also support the process of repurposing IP, which can take various forms, such as acquiring a domain or selling the domain. Overall, the conversation highlights the importance of considering the legal requirements and the value of IP in the business world. Sale of Data during a Business Shut Down The discussion revolves around the process of closing a company, including the sale of data, intellectual property, patents, and code base. A platform called Simple Closing offers buyers to buy assets of companies shutting down, making the process as simple and streamlined as possible. Tax reporting and other tasks are prepaid by the accountant or accounting firm, but the final stage involves closing the bank account, paying off vendors, and sending out final checks to investors.The final stage involves record retention, notifying the IRS about the shutdown, and distributing funds to investors. This process is methodical and involves a waterfall calculation to determine the amount each person should receive back. This calculation is done on a pro rata basis, and after paying all taxes and closing the company, the money is wired out and distributed back to investors. The Final Stage of a Company Shut Down The final stage involves closing the bank account, paying off vendors, and sending out final checks to investors, record retention, payment of vendors, and distribution of funds. The final stage involves tying up loose ends and ensuring accurate distribution of funds to investors. Dori explains the process of closing a business, particularly when it comes to payroll, and the challenges faced by founders, such as filing quarterly taxes and dealing with payroll issues. He also talks about the importance of estimating the involvement and duration of founders, such as prepaying themselves with severance packages or bulk sums and why waterfall calculations must be done and how they work.  The Simple Closure Company Explained Dori talks about Simple Closure, an online platform that helps founders and operators in the unfortunate position of wanting to shut down their firm. Their mission is not to shut down companies, but to help founders and operators have the peace of mind to move on to what's next. They believe that entrepreneurship is a community of repeat founders and businesses, and the faster they can get founders back on their feet, the more mind space they can give them to build and find their next job. He shares his company's go-to market, which includes referrals from venture-backed firms or inbounds from their website. He explains that they invest in partnerships to meet customers at the right moment in time and build trust with them. The company aims to partner with companies, firms, or entities, such as venture-backed firms, to help them navigate the process and ensure their brand reputation is built. Timestamps: 02:49: Overview of Shutdown Process  05:42: Handling Payroll and Employee Wages  19:28: Wind-Up Phase and Vendor Management  27:36: Data and Intellectual Property Management  31:53: Final Stages and Distribution of Funds  38:44: Go-to-Market Strategy and Pricing  Link: Company website: <a href= "http://simpleclosure.com/">simpleclosure.com</a>   Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at <a href="http://www.umbrex.com.">www.umbrex.com.</a>

<description>&lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Show Notes:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Dori Yona, founder of Simple Closure, explains the process of shutting down a company. The process is painful, manual, and bureaucratic, with an average time of nine to 12 months. It can cost companies thousands of dollars or even hundreds of thousands of dollars in fees. Many companies end up doing it incorrectly, leading to fines and penalties.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;The Multiple Moving Parts of a Business Shut Down&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Dori explains that the main difficulty in shutting down a company is the coordination of multiple moving parts, such as the state of incorporation, IRS, lawyers, accountants, payroll provider, vendors, service providers, investors, payroll, and state departments. The average shutdown for a venture-backed company has about 95 moving parts, and if any of them are missed or not done correctly, the process can drag on and on.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;First Steps in Shutting Down a Business&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Dori talks about three typical approaches for a shutdown of a firm, which they categorize into three main “buckets”.  The first bucket is companies that reach out six to nine months before they need to shut down, as they are running out of cash and trying to raise another round or convince existing investors to invest more in their company. They want to be ready for what happens if it doesn't work out, so they reach out to the Simple Closure six months before to discover what the process involves. Dori mentions the Shut Down calculator his firm developed and put on their website to help business owners work through costs and assess the time they have left before going into the red and complicating the shut down. Bucket number two is when companies decide to shut down immediately, need quick media advice, need help presenting to the board, or with winding down the business. Bucket number three is when companies have shut down operationally six months or a year ago but never dealt with properly winding down the business. They may face penalties, fines, and liens on their personal property due to improper actions.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;The Financial Reality of Shutting Down a Business&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Dori emphasizes that it is not easy to walk away from a company, as it can come back and haunt the owner(s). He explains that while a corporate entity is there to protect board members, investors, and founders,  if certain things are not done properly, it can pierce the corporate veil, making the board and founders personally liable and potentially sued. The most common issue is wages, where an employee is owed wages and has not been paid. Companies should make sure that the proper winding up process is done to avoid loose ends and potential lawsuits from stakeholders, such as vendors, investors, state departments, and payroll departments. Dori also stresses the importance of considering investors during the shutdown process.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Payroll Providers and the Shut Down Process &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;A company's shutdown process involves understanding the number of employees it has and how to properly shut down them. Dori uses a typical seed stage company as an example. This type of company usually has around 15 to 20 employees at its peak, with a few founders and one more engineer or person. To properly shut down the company, it is crucial to know who is currently on payroll, whether full-time or contractors, and how many employees the company had at its peak across different states and locations. Most startups use payroll providers, but they are not good at shutting down payroll accounts. When a company shuts down, they terminate the relationship between themselves and the payroll provider, this does not mean the payroll provider has closed down all accounts in all states. To help close out all accounts and notify all states, companies should ask for the HRIS census, which provides background and history of employees. Analyzing this data helps determine who is a past employee versus an active employee. The discussion explores the issue of 1099s for companies that are about to shut down, such as those in the US. Dori explains that the ultimate goal is to close out all accounts and notify all states, as every state operates differently and how to shut down accounts for active and non-active employees, and contractors.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Technology that Automates and Scales the Shutdown Process&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The goal of Dori’s company is to build a technology solution to automate and scale the process of closing out payroll departments. The company aims to be the TurboTax shutting down platform, providing a platform for companies to easily close out their payroll departments. He mentions that the company has built automations to automate various processes, such as faxes, phone calls, emails, and online forms. However, there are many AI solutions available today, such as outbound SDR and AI calls that can call in and provide basic account information. The company's goal is to develop a platform that allows companies to easily close out their payroll departments and help streamline and automate the process. Dori also talks about shutting down repeat services such as subscriptions. &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Three Main Phases of a Company Shut Down&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The winding down of a company involves three main phases: dissolution, wind up, and shut down. In Delaware, the first phase involves notifying the state and other entities, such as shareholders, board, and employees, about the decision to shut down the company. This involves notifying the state, preparing franchise taxes, filing the certificate of dissolution, and canceling the EIN. The second phase is the winding up phase, which involves unwinding payroll, paying out vendors, collecting invoices, and dealing with accounts receivable and payable. After the dissolution phase, the company must file a final tax return, distribute any remaining money to investors or creditors, and close out bank accounts.&lt;/span&gt; &lt;span style= "font-size: 10pt;"&gt;The third phase is the shutdown phase, which involves closing out bank accounts and sending out certificates of closure to investors and shareholders. It's important to have an export of all contracts with vendors and understand their options for cancellation. This process depends on the type of vendor and the company's capital. Dori shares information on how to deal with vendors during the shut down process.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;The Legal Requirements of Data Retention &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The conversation turns to the importance of data retention and the value of company data and IP. Dori talks about the importance of understanding the industry and company type, such as healthcare companies needing to keep patient records for seven years post-shutdown. Dori recommends using data custodians to store these records in a safe place, adhering to protocols and encryption levels. He also discusses the need for tokenization around the store to ensure a safe and secure process. On the IP side, Dori explains how founders can monetize their IP after the company shuts down. Delaware law states that winding down the business should maximize value for shareholders, as it is the shareholders' company. They can either acquire the IP or sell it, depending on the situation. They also support the process of repurposing IP, which can take various forms, such as acquiring a domain or selling the domain. Overall, the conversation highlights the importance of considering the legal requirements and the value of IP in the business world.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Sale of Data during a Business Shut Down&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The discussion revolves around the process of closing a company, including the sale of data, intellectual property, patents, and code base. A platform called Simple Closing offers buyers to buy assets of companies shutting down, making the process as simple and streamlined as possible. Tax reporting and other tasks are prepaid by the accountant or accounting firm, but the final stage involves closing the bank account, paying off vendors, and sending out final checks to investors.The final stage involves record retention, notifying the IRS about the shutdown, and distributing funds to investors. This process is methodical and involves a waterfall calculation to determine the amount each person should receive back. This calculation is done on a pro rata basis, and after paying all taxes and closing the company, the money is wired out and distributed back to investors.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;The Final Stage of a Company Shut Down&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The final stage involves closing the bank account, paying off vendors, and sending out final checks to investors, record retention, payment of vendors, and distribution of funds. The final stage involves tying up loose ends and ensuring accurate distribution of funds to investors.&lt;/span&gt; &lt;span style="font-size: 10pt;"&gt;Dori explains the process of closing a business, particularly when it comes to payroll, and the challenges faced by founders, such as filing quarterly taxes and dealing with payroll issues. He also talks about the importance of estimating the involvement and duration of founders, such as prepaying themselves with severance packages or bulk sums and why waterfall calculations must be done and how they work. &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;The Simple Closure Company Explained&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Dori talks about Simple Closure, an online platform that helps founders and operators in the unfortunate position of wanting to shut down their firm. Their mission is not to shut down companies, but to help founders and operators have the peace of mind to move on to what's next. They believe that entrepreneurship is a community of repeat founders and businesses, and the faster they can get founders back on their feet, the more mind space they can give them to build and find their next job. He shares his company's go-to market, which includes referrals from venture-backed firms or inbounds from their website. He explains that they invest in partnerships to meet customers at the right moment in time and build trust with them. The company aims to partner with companies, firms, or entities, such as venture-backed firms, to help them navigate the process and ensure their brand reputation is built.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Timestamps:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;02:49: Overview of Shutdown Process &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;05:42: Handling Payroll and Employee Wages &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;19:28: Wind-Up Phase and Vendor Management &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;27:36: Data and Intellectual Property Management &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;31:53: Final Stages and Distribution of Funds &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;38:44: Go-to-Market Strategy and Pricing &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Link:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Company website: &lt;a href= "http://simpleclosure.com/"&gt;simpleclosure.com&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt; &lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at &lt;a href="http://www.umbrex.com."&gt;www.umbrex.com.&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt; &lt;/p&gt; &lt;p&gt; &lt;/p&gt;</description>

Show Notes: Dori Yona, founder of Simple Closure, explains the process of shutting down a company. The process is painful, manual, and bureaucratic, with an average time of nine to 12 months. It can cost companies thousands of dollars or even hundreds...

603. Dori Yona, Founder of Simple Closure, How to Shut Down a Business

Show Notes Jacob Bank, founder and CEO of Relay.App, talks about the rise of AI agents, a type of chatbot that can work on your behalf in the background. He explains that AI agents can perform tasks similar to junior-level employees or interns.  How AI Agents Work An example of an AI agent working on your blog post is Chat GPT, which can automatically draft a blog post about a new recipe. The agent may ask for feedback and then publish it for you. This makes AI agents less of a thought prompt partner and more like an intern who takes on a mission on your behalf. There are two ways AI agents can take action on your behalf: making direct computer calls called API calls, or controlling your computer. API calls allow agents to make direct connections with tools like Salesforce, Calendly, Microsoft Teams, Google Calendar, and HubSpot. The second approach involves the AI controlling your computer, i.e., constantly looking at the screen and clicking buttons on it. Relay.App focuses on business productivity applications and automated calls, so it cannot log into your bank and perform actions on your behalf. However, a tool using the computer use capability would need two factor authentication and captcha. AI Agent Interaction: Solutions and Problems AI agents can interact with any website or tool that has an API, such as email browsers, CRM systems, and business productivity tools. There are three categories of AI agents: APIs, which perform tasks on a computer screen, AI in-built capabilities, and capabilities in reasoning. One problem AI agents need to solve is how they interact with their tools, such as reading and writing data from Salesforce, and how they can do this either via an API or by controlling the browser. Additionally, AI agents have the ability to extract information from PDFs, translate language information, turn text to speech, create videos automatically, and browse the web and do research. Three Models of AI Agents There are three models of AI agents to keep in mind: one class is a tool like relay.app, where the tool comes on your cloud or services, and interacts with things, while another class is a tool owned by the customer or freelancing agents. Models to consider when building AI agents: pre-built AI agents, which are commonly used in customer support tools, custom AI agents, and freelancing agents. These models are designed for specific vertical use cases and can be hosted on a platform or servers. AI agents can interact with various tools and platforms, including email marketing tools, CRM systems, and cloud-based versions of Microsoft tools. They can also perform tasks such as transcription, summary notes, and internet research. Customer Service Agents Customer service agents can be trained on a company's knowledge base. These agents can take various actions, such as replying to emails, triggering password reset emails, or issuing refunds. There are three main types of customer support agents: pre-built agents for specific use cases, custom built agents on easy-to-use platforms like lyndee.ai, relevance.ai, and Zapier, and engineers building their own agents using developer-focused frameworks. There are two options for building agents: one that interacts with APIs, and another that almost takes over your desktop. The fully browser-based approach is less reliable and predictable, but API-based approaches provide clearer guardrails for the agents. Common Use Cases for Relay.App  The most common use cases for Relay.app include email handling, calendar management, customer interaction and relationship management, and marketing content creation. Email calendar management involves extracting information from emails, summarizing PDFs, forwarding them to others, drafting or applying to emails, labeling them, and archived emails. Personal productivity use cases involve managing emails, scheduling meetings, and reminding people to RSVP. Customer interaction and relationship management involves researching prospects, sending personalized emails, creating contracts, and reviewing support tickets. Marketing content creation involves creating life cycle marketing campaigns, blog posts, LinkedIn posts, and Twitter posts. These are the big three use cases for AI agents. However, there are also a wide range of businesses with different bespoke use cases, so they can build AI agents to do custom tasks. AI Agent Meeting Prep Jacob shares the step-by-step process to using the AI agent. The agent will help prepare for meetings by providing information about the person they are about to meet. The next step is to add a trigger, which is what happens in the outside world that causes the agent to wake up and start working on our behalf. The trigger can be based on an event in an application or on a scheduled basis. In this case, the trigger will be when an event is upcoming in Google Calendar. The agent will then be able to check if any changes in the person's calendar are made and reschedule the meeting. The AI agent will then be able to look at all the meetings that the person has tomorrow, and the time picker will show that the trigger will happen daily at 5pm. Using AI Agents to Find Events Jacob introduces a new step in Google Calendar that allows users to find events and filter them based on criteria. The step is set up to find all events that match the specified criteria, such as start time coming after today or before today plus two. If no events are found, the system can either notify the user or continue with the day without meetings. The next step is to use an iterator to iterate over the list of events found in the previous step. The output of one step can be used as input for the next step, as it often references previous information. In this case, the list of events is the list of events found in the previous step. Using AI Judgement To use AI judgement, Jacob adds a step to an AI step, selecting Custom Prompt. This prompts the AI to provide detailed instructions and insert relevant data for context. For example, if everyone has responded to a meeting, Jacob sends an email stating "looking forward to seeing you tomorrow" and if not, an email asking if the meeting still works for everyone. A path is created, which allows the user to decide whether to proceed with the AI's task. The first branch of the path is everyone replied, where the user can choose which rules determine whether to go down that path. In this case, the user selects "everybody replied," which will send an email to the list of guests, stating "looking forward to seeing you tomorrow." The email can be written manually or sent by the user. AI Agents' Primary Target Audience The primary target audience is non-technical individuals who have never written code or used code tools. The goal is to make the product easy for everyone to use. The company offers a partner program with automation and AI experts and agencies to help businesses set up workflows or advise on AI usage. Jacob also provides YouTube tutorials that can be helpful for creating workflows. Once people watch tutorials and follow them, they can understand the process at each step. The hope is that everyone can create their own workflows without needing a partner. However, complex business needs may require assistance.The goal is to make the product accessible to everyone, regardless of their technical skills. The company also offers a partner program with automation and AI experts to help businesses set up workflows and advise on AI usage. Relay.App Pricing The pricing of the tool is a standard self-serve freemium model, with subscriptions based on how much users use the product. The free tier offers 200 steps and 500 AI credits, while the first paid tier is $9 a month, which includes more steps and AI credits. The team tier starts at $59 a month for companies using it with multiple people. As users use the tool more, it needs more steps and AI reasoning. Bundles of credits are available on top of the subscriptions.The typical cost for a typical business is between $100 and $200 a month. However, if users are getting value from the product, they will pay $100 to $200 a month.    Finding Talent with Relay.App On the Relay.App website, which features a gallery of common use cases, such as competitive research, pre-meeting dossiers, and email extracting. The app also includes a human-in-the-loop step where users can ask for help in identifying the right profile based on their information. This human-led approach can help AI agents make more informed decisions and ensure the effectiveness of their work. The app also includes a human-in-the-loop step, allowing users to identify the most suitable profile based on their information.  Timestamps: 03:12: Capabilities and Limitations of AI Agents  10:01: Interaction Models and Use Cases  14:13: Building an AI Agent: Step-by-Step  29:56: Advanced Features and Customization  31:25: Pricing and Availability  33:33: LinkedIn Profile Finder Use Case  38:02: Conclusion and Resources Link: Company website: <a href= "https://www.relay.app/">https://www.relay.app/</a>   Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at <a href="http://www.umbrex.com.">www.umbrex.com.</a>

<description>&lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Show Notes&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Jacob Bank, founder and CEO of Relay.App, talks about the rise of AI agents, a type of chatbot that can work on your behalf in the background. He explains that AI agents can perform tasks similar to junior-level employees or interns. &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;How AI Agents Work&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;An example of an AI agent working on your blog post is Chat GPT, which can automatically draft a blog post about a new recipe. The agent may ask for feedback and then publish it for you. This makes AI agents less of a thought prompt partner and more like an intern who takes on a mission on your behalf. There are two ways AI agents can take action on your behalf: making direct computer calls called API calls, or controlling your computer. API calls allow agents to make direct connections with tools like Salesforce, Calendly, Microsoft Teams, Google Calendar, and HubSpot. The second approach involves the AI controlling your computer, i.e., constantly looking at the screen and clicking buttons on it. Relay.App focuses on business productivity applications and automated calls, so it cannot log into your bank and perform actions on your behalf. However, a tool using the computer use capability would need two factor authentication and captcha.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;AI Agent Interaction: Solutions and Problems&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;AI agents can interact with any website or tool that has an API, such as email browsers, CRM systems, and business productivity tools. There are three categories of AI agents: APIs, which perform tasks on a computer screen, AI in-built capabilities, and capabilities in reasoning. One problem AI agents need to solve is how they interact with their tools, such as reading and writing data from Salesforce, and how they can do this either via an API or by controlling the browser. Additionally, AI agents have the ability to extract information from PDFs, translate language information, turn text to speech, create videos automatically, and browse the web and do research.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Three Models of AI Agents&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;There are three models of AI agents to keep in mind: one class is a tool like relay.app, where the tool comes on your cloud or services, and interacts with things, while another class is a tool owned by the customer or freelancing agents. Models to consider when building AI agents: pre-built AI agents, which are commonly used in customer support tools, custom AI agents, and freelancing agents. These models are designed for specific vertical use cases and can be hosted on a platform or servers. AI agents can interact with various tools and platforms, including email marketing tools, CRM systems, and cloud-based versions of Microsoft tools. They can also perform tasks such as transcription, summary notes, and internet research.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Customer Service Agents&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Customer service agents can be trained on a company's knowledge base. These agents can take various actions, such as replying to emails, triggering password reset emails, or issuing refunds. There are three main types of customer support agents: pre-built agents for specific use cases, custom built agents on easy-to-use platforms like lyndee.ai, relevance.ai, and Zapier, and engineers building their own agents using developer-focused frameworks. There are two options for building agents: one that interacts with APIs, and another that almost takes over your desktop. The fully browser-based approach is less reliable and predictable, but API-based approaches provide clearer guardrails for the agents.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Common Use Cases for Relay.App &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The most common use cases for Relay.app include email handling, calendar management, customer interaction and relationship management, and marketing content creation. Email calendar management involves extracting information from emails, summarizing PDFs, forwarding them to others, drafting or applying to emails, labeling them, and archived emails. Personal productivity use cases involve managing emails, scheduling meetings, and reminding people to RSVP. Customer interaction and relationship management involves researching prospects, sending personalized emails, creating contracts, and reviewing support tickets. Marketing content creation involves creating life cycle marketing campaigns, blog posts, LinkedIn posts, and Twitter posts. These are the big three use cases for AI agents. However, there are also a wide range of businesses with different bespoke use cases, so they can build AI agents to do custom tasks.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;AI Agent Meeting Prep&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Jacob shares the step-by-step process to using the AI agent. The agent will help prepare for meetings by providing information about the person they are about to meet. The next step is to add a trigger, which is what happens in the outside world that causes the agent to wake up and start working on our behalf. The trigger can be based on an event in an application or on a scheduled basis. In this case, the trigger will be when an event is upcoming in Google Calendar. The agent will then be able to check if any changes in the person's calendar are made and reschedule the meeting. The AI agent will then be able to look at all the meetings that the person has tomorrow, and the time picker will show that the trigger will happen daily at 5pm.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Using AI Agents to Find Events&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Jacob introduces a new step in Google Calendar that allows users to find events and filter them based on criteria. The step is set up to find all events that match the specified criteria, such as start time coming after today or before today plus two. If no events are found, the system can either notify the user or continue with the day without meetings. The next step is to use an iterator to iterate over the list of events found in the previous step. The output of one step can be used as input for the next step, as it often references previous information. In this case, the list of events is the list of events found in the previous step.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Using AI Judgement&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;To use AI judgement, Jacob adds a step to an AI step, selecting Custom Prompt. This prompts the AI to provide detailed instructions and insert relevant data for context. For example, if everyone has responded to a meeting, Jacob sends an email stating "looking forward to seeing you tomorrow" and if not, an email asking if the meeting still works for everyone. A path is created, which allows the user to decide whether to proceed with the AI's task. The first branch of the path is everyone replied, where the user can choose which rules determine whether to go down that path. In this case, the user selects "everybody replied," which will send an email to the list of guests, stating "looking forward to seeing you tomorrow." The email can be written manually or sent by the user.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;AI Agents' Primary Target Audience&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The primary target audience is non-technical individuals who have never written code or used code tools. The goal is to make the product easy for everyone to use. The company offers a partner program with automation and AI experts and agencies to help businesses set up workflows or advise on AI usage. Jacob also provides YouTube tutorials that can be helpful for creating workflows. Once people watch tutorials and follow them, they can understand the process at each step. The hope is that everyone can create their own workflows without needing a partner. However, complex business needs may require assistance.The goal is to make the product accessible to everyone, regardless of their technical skills. The company also offers a partner program with automation and AI experts to help businesses set up workflows and advise on AI usage.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Relay.App Pricing&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The pricing of the tool is a standard self-serve freemium model, with subscriptions based on how much users use the product. The free tier offers 200 steps and 500 AI credits, while the first paid tier is $9 a month, which includes more steps and AI credits. The team tier starts at $59 a month for companies using it with multiple people. As users use the tool more, it needs more steps and AI reasoning. Bundles of credits are available on top of the subscriptions.The typical cost for a typical business is between $100 and $200 a month. However, if users are getting value from the product, they will pay $100 to $200 a month. &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;span style= "font-size: 10pt;"&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Finding Talent with Relay.App&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;On the Relay.App website, which features a gallery of common use cases, such as competitive research, pre-meeting dossiers, and email extracting. The app also includes a human-in-the-loop step where users can ask for help in identifying the right profile based on their information. This human-led approach can help AI agents make more informed decisions and ensure the effectiveness of their work. The app also includes a human-in-the-loop step, allowing users to identify the most suitable profile based on their information. &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Timestamps:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;03:12: Capabilities and Limitations of AI Agents &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;10:01: Interaction Models and Use Cases &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;14:13: Building an AI Agent: Step-by-Step &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;29:56: Advanced Features and Customization &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;31:25: Pricing and Availability &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;33:33: LinkedIn Profile Finder Use Case &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;38:02: Conclusion and Resources&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Link:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Company website: &lt;a href= "https://www.relay.app/"&gt;https://www.relay.app/&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt; &lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at &lt;a href="http://www.umbrex.com."&gt;www.umbrex.com.&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt; &lt;/p&gt; &lt;p&gt; &lt;/p&gt;</description>

Show Notes Jacob Bank, founder and CEO of Relay.App, talks about the rise of AI agents, a type of chatbot that can work on your behalf in the background. He explains that AI agents can perform tasks similar to junior-level employees or interns. ...

602. Jacob Bank, Founder of Relay.app, No-code AI Agents

Nikola Lazarov is the co-founder and CEO of Eilla AI, a tool that provides AI workers for private market intelligence. Nikola is an AI engineer who started his career at a London-based hedge fund, Marble Bar Asset Management, where he worked as a quant. He realized the value of AI in structuring unstructured data for private companies and decided to start a company almost three years ago. What Eilla AI Does While Nikola mentions that their target clients are investors and investment bankers, Eilla AI's tool does various tasks, such as finding competitors, analyzing their USP, target market, and financials. It also offers a solution for finding comparable transactions and conducting valuation reports. By searching for similar companies, it can determine their multiples, revenues, and valuations. The tool collects data from various data providers, including CrunchBase Zero and PitchBook, and scrapes it on its own. One of the most exciting solutions offered by Eilla AI is finding comparable transactions and doing valuation reports. This involves finding similar companies, analyzing their financials, average multiples, and what is driving these valuations. The tool automatically gathers and compares the data, providing valuable insights for startups, investors, and investment bankers. How Eilla AI Works The conversation turns to how it works. Nikola talks through using the software and explains the visuals on the screen, which includes tabs such as company, profile, competitor, research, buyer, selection, investment highlights, key questions, risks and mitigates, and a one-pager. The company profile page provides a consolidated set of information about the company, including its headquarters location, number of employees, founding status, total raised, and last transaction. The company description, industry, problem solved, key team members, funding, product, clients, business model, digital intelligence, and news are all included. The platform is similar to CrunchBase and other data aggregators, but it aggregates data from various sources, such as LinkedIn, their website, CrunchBase, and Capita. The platform also offers footnotes for each piece of data, allowing users to hover over it to see the source of the information. The platform also provides information on the website traffic, such as the source and the number of followers. Aggregating Data from Various Sources Nikola explains how the tool works using competitor research as the example to find the closest competitors to Pay Hawk. He explains that this process saves time and helps save time by aggregating data.  However, what differentiates Eilla AI is what happens on top of this aggregated data. It uses a proprietary database of in-depth product information to gather information from over 7 million companies, ranking them based on funding, cat count, and other factors. AI is used to determine the number of competitors and similar companies.  A Vertical View of Information Users can select a few companies to dive deeper into, and a vertical view allows for a comparison table. The table includes company name type, description, product description, headquarters location, team, year of founding, last round of funding, status, ownership status, detailed offering, unique selling proposition, and target market. The information is organized in a way that would take weeks to pull together. Users can use the vertical view to see the companies side by side. The platform also includes green dots on product descriptions to indicate high similarity and source information. This tool is unique in that it not only provides data but also replicates the workflow of competitor research. It offers insights such as a SWOT analysis on the strengths, weaknesses, opportunities, and threats of Pay Hawk versus its competitors. Product and Services The platform also includes a Products and Services tab with bullet points around PayHawk versus its competitors. Each product has a footnote where users can click to see the sources and scroll down to understand the differences between the two companies. Nikola also mentions the upcoming release of Cap IQ Financial, which includes important information like revenue, beta, valuation, and financials. The buyer selection tab is particularly interesting, as it shows all similar companies to Payco, including acquisitions and mergers. These companies are split into potential strategic buyers, competitors, and financial buyers. The tool also highlights the similarities between Pay Hawk and other companies, such as Visma and Instant, a platform that automates control for secure payments and trustworthy suppliers. The platform also assesses the financial capabilities of the company to buy companies like Pay Hawk. Eilla AI Features Eilla AI  Nikola explains that the platform aims to replicate the workflow of investors and investment bankers by breaking down complex workflows into simpler steps. This is done by breaking down data from various sources, such as data providers, CRMs, emails, and nodes. The goal is to provide a comprehensive overview of the company's funding, team, head count, product, services, USP, and detailed offering. The platform also offers a one-pager, which can be easily downloaded and viewed as a PDF. This information provides a detailed overview of the company's funding, team, head count, product, and services, as well as its unique selling points. The platform also provides a free seven-day trial for potential customers, such as corporate executives or business consultants looking for acquisitions. Eilla AI Pricing Schedule The pricing schedule is based on the number of requests per user and the amount of time spent on due diligence. For larger companies, the standard price is $98 per month per seat, while for smaller companies, it is $300 per month per user. The platform also offers a free seven-day trial for those interested in trying out the product without the need for sales meetings. Timestamps: 02:38: Overview of Eilla AI’s Services  04:46: Demonstration of Eilla AI’s Capabilities  09:50: Competitor Research and Insights  16:08: Buyer Selection and Investment Highlights  20:18: Key Questions and Risks Mitigation  22:09: Customer Base and Pricing  24:50: Conclusion and Next Steps    Links: <a href= "https://eilla.ai">https://Eilla.ai</a>   Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at <a href= "http://www.umbrex.com.">www.umbrex.com.</a>

<description>&lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Nikola Lazarov is the co-founder and CEO of Eilla AI, a tool that provides AI workers for private market intelligence. Nikola is an AI engineer who started his career at a London-based hedge fund, Marble Bar Asset Management, where he worked as a quant. He realized the value of AI in structuring unstructured data for private companies and decided to start a company almost three years ago.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;What Eilla AI Does&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;While Nikola mentions that their target clients are investors and investment bankers, Eilla AI's tool does various tasks, such as finding competitors, analyzing their USP, target market, and financials. It also offers a solution for finding comparable transactions and conducting valuation reports. By searching for similar companies, it can determine their multiples, revenues, and valuations. The tool collects data from various data providers, including CrunchBase Zero and PitchBook, and scrapes it on its own. One of the most exciting solutions offered by Eilla AI is finding comparable transactions and doing valuation reports. This involves finding similar companies, analyzing their financials, average multiples, and what is driving these valuations. The tool automatically gathers and compares the data, providing valuable insights for startups, investors, and investment bankers.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;How Eilla AI Works&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The conversation turns to how it works. Nikola talks through using the software and explains the visuals on the screen, which includes tabs such as company, profile, competitor, research, buyer, selection, investment highlights, key questions, risks and mitigates, and a one-pager. The company profile page provides a consolidated set of information about the company, including its headquarters location, number of employees, founding status, total raised, and last transaction. The company description, industry, problem solved, key team members, funding, product, clients, business model, digital intelligence, and news are all included. The platform is similar to CrunchBase and other data aggregators, but it aggregates data from various sources, such as LinkedIn, their website, CrunchBase, and Capita. The platform also offers footnotes for each piece of data, allowing users to hover over it to see the source of the information. The platform also provides information on the website traffic, such as the source and the number of followers.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Aggregating Data from Various Sources&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Nikola explains how the tool works using competitor research as the example to find the closest competitors to Pay Hawk. He explains that this process saves time and helps save time by aggregating data.  However, what differentiates Eilla AI is what happens on top of this aggregated data. It uses a proprietary database of in-depth product information to gather information from over 7 million companies, ranking them based on funding, cat count, and other factors. AI is used to determine the number of competitors and similar companies. &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;A Vertical View of Information&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Users can select a few companies to dive deeper into, and a vertical view allows for a comparison table. The table includes company name type, description, product description, headquarters location, team, year of founding, last round of funding, status, ownership status, detailed offering, unique selling proposition, and target market. The information is organized in a way that would take weeks to pull together. Users can use the vertical view to see the companies side by side. The platform also includes green dots on product descriptions to indicate high similarity and source information. This tool is unique in that it not only provides data but also replicates the workflow of competitor research. It offers insights such as a SWOT analysis on the strengths, weaknesses, opportunities, and threats of Pay Hawk versus its competitors.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Product and Services&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The platform also includes a Products and Services tab with bullet points around PayHawk versus its competitors. Each product has a footnote where users can click to see the sources and scroll down to understand the differences between the two companies. Nikola also mentions the upcoming release of Cap IQ Financial, which includes important information like revenue, beta, valuation, and financials. The buyer selection tab is particularly interesting, as it shows all similar companies to Payco, including acquisitions and mergers. These companies are split into potential strategic buyers, competitors, and financial buyers. The tool also highlights the similarities between Pay Hawk and other companies, such as Visma and Instant, a platform that automates control for secure payments and trustworthy suppliers. The platform also assesses the financial capabilities of the company to buy companies like Pay Hawk.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Eilla AI Features Eilla AI &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Nikola explains that the platform aims to replicate the workflow of investors and investment bankers by breaking down complex workflows into simpler steps. This is done by breaking down data from various sources, such as data providers, CRMs, emails, and nodes. The goal is to provide a comprehensive overview of the company's funding, team, head count, product, services, USP, and detailed offering. The platform also offers a one-pager, which can be easily downloaded and viewed as a PDF. This information provides a detailed overview of the company's funding, team, head count, product, and services, as well as its unique selling points. The platform also provides a free seven-day trial for potential customers, such as corporate executives or business consultants looking for acquisitions.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Eilla AI Pricing Schedule&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The pricing schedule is based on the number of requests per user and the amount of time spent on due diligence. For larger companies, the standard price is $98 per month per seat, while for smaller companies, it is $300 per month per user. The platform also offers a free seven-day trial for those interested in trying out the product without the need for sales meetings.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Timestamps:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;02:38: Overview of Eilla AI’s Services &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;04:46: Demonstration of Eilla AI’s Capabilities &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;09:50: Competitor Research and Insights &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;16:08: Buyer Selection and Investment Highlights &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;20:18: Key Questions and Risks Mitigation &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;22:09: Customer Base and Pricing &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;24:50: Conclusion and Next Steps &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt; &lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Links:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;&lt;a href= "https://eilla.ai"&gt;https://Eilla.ai&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p&gt; &lt;/p&gt; &lt;p&gt;&lt;span style="font-size: 10pt;"&gt;Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at &lt;a href= "http://www.umbrex.com."&gt;www.umbrex.com.&lt;/a&gt;&lt;/span&gt;&lt;/p&gt;</description>

Nikola Lazarov is the co-founder and CEO of Eilla AI, a tool that provides AI workers for private market intelligence. Nikola is an AI engineer who started his career at a London-based hedge fund, Marble Bar Asset Management, where he worked as a...

601. Nikola Lazarov, Co-Founder & CEO at Eilla AI

Jeff Sinclair, a senior global leader at McKinsey, discusses the history of operations at the firm. The firm was initially known as a strategy firm and did some organization and marketing work. However, in the 1980s, clients began to draw more attention to operations, particularly in the automotive industry in Europe and North America. Operations became a strategic function for automotive OEMs and part suppliers, as they needed to serve their customers with high quality, cost-effective, and operationally effective services. Operations Practice at McKinsey When Jeff joined the firm in 1981, there were about 500 people in the firm. Today, it is estimated that there are 40,000 people worldwide. The firm started building its operations capability in the 80s by recruiting people with specific functional expertise, particularly in manufacturing. They started hiring people from Toyota Supplier Support Center, and creating a well-defined career path within the firm, which is the specialist path or expert path. The operations practice was at the leading edge of other functional practices, such as marketing, market research, and organization. However, the firm had to create new career paths, which led to many iterations of the expert path. The firm had to continuously improve how it recognized and understood their contributions beyond the traditional generalist path. Bureaucratic Maneuvering in Creating a Career Path Jeff discusses the transition from a strong culture to multiple career paths within McKinsey. He explains that this change took about 18 years and was driven by the firm's strong culture and the willingness of senior partners in positions of power to help navigate the new path. As employees advanced in the firm, they had to develop relationships with senior executives, which led to ongoing opportunities to serve them. This made it difficult for experts to fit in and develop new service lines and ways of thinking about problem-solving. The firm struggled to recognize the contribution of subject matter expertise to their ability to serve clients and give them credit for developing new service lines and ways of helping clients execute more effectively. Experts were used on projects in a mixture of subject matter expertise, consulting  director roles, and full-time execution people.  The Evolution of Consultants at McKinsey  The firm gave some of the personnel role responsibility to the functional practices themselves, hiring lean manufacturing or supply chain experts into the practice. They would take over the personnel development role, evaluation of performance, counseling, and coaching on how to evolve these new career paths. Over time, the firm recognized the high value added contribution of functional practices and expanded its service to clients. While there is still a tension between generalist and specialist paths within McKinsey today, it has improved significantly. Bob Sternfels, the managing director of the firm, was a functional practice leader who recognized the level of contribution of functional practices and grew the career path within the firm. McKinsey’s Expansion into other Industries The firm's operations practice evolved from a dominant career path of the generalist partner to a more diverse range of ways of delivering value for clients. The firm initially faced resistance from some office leaders who believed that the new approach would lead to professional suicide. However, over time, the firm embraced the idea of having multiple functional practices, including the operations practice. In the 90s, McKinsey expanded its service to healthcare providers, which led to the growth of the operations practice. This led to the development of Lean principles, such as the Toyota Production System, which were applied in various industries, such as healthcare, consumer goods, and banking. These principles allowed the firm to create real value in areas where people didn't expect it. One example of this transformation is the expansion of the healthcare practice into other industries, such as consumer goods and banking. This allowed the firm to draw in functional expertise from other industries, such as manufacturing and supply chain management, which allowed them to create real value in these areas. The McKinsey Impact  Jeff talks about the impact of McKinsey's operations practice on various industries in America. McKinsey has contributed to changes in healthcare operating theaters and hospitals, and even hospitals that didn't work with McKinsey may have learned from their projects. Jeff emphasizes the importance of a partnership within the firm, as it takes many people to make things happen. He believes that McKinsey's strengths lie in its ability to nurture the capability to grow and work with industry practices to deliver functional capabilities to clients.  The McKinsey Framework The firm organized itself to develop partnerships with industry practices and work in the wholesale fashion, and working in the retail side of the firm for example. They continuously invested in new knowledge, both bringing in established knowledge and developing their own. They also worked on career paths and managed practices and enterprise, creating a four-part framework of client knowledge, people, and infrastructure to build a practice. This framework was explicitly managed through the 90s and 2000s to create functional practices as legitimate entities in parallel with offices and industry practices, ensuring co-equalization between industry practice and functional practice. Building Manufacturing Capability Jeff shares his experiences with building manufacturing capability in a company. He partnered with Felix Brooke to understand and codify the technical, management, and people leadership systems that drive performance transformation. This expanded to include processes in healthcare and banking. Jeff also discusses the importance of understanding the current state of operational capability in an organization and applying Lean thinking at the overall organizational culture and capability building level. Jeff also emphasizes the need to invest in understanding how to design the operating and management systems, train people, build capability, and use pilot projects to demonstrate their effectiveness. Investment in Knowledge Project Work The conversation turns to the firm's investment in knowledge project work, which includes research and application engineering. McKinsey excels at translating various theories into service delivery capability service lines for clients. The firm invests a significant amount every year, spending more than the top five business schools combined on research and development of new service lines. They sponsor projects across multiple functional practices, including operations practice, to take their current knowledge to the next level and serve clients more effectively. Capability Building and Transformation McKinsey has developed a network of model factories around the world for capability building and transformation in manufacturing operations. The model factories are physical locations where McKinsey teams can bring client people in and train them in a simulated environment. The firm recognized that training for capability building in many organizations was weak. They formed teams around the world to identify the modules that people need to learn, such as lean principles, rapid change over stamping operations, pull scheduling, and the Kanban methodology. They codified and made tangible the processes. Over time, they accumulated multiple projects and started building knowledge outside of the manufacturing operation. To provide client training, the firm built multiple factories around the world. The first model factory was started in Germany. These small model factories were 15 to 20,000 square feet with real operations within them. These models helped with client training. The model factories were designed to provide a realistic experience for clients and to help clients learn and adapt to the changing needs of their operations. On Building a Practice Jeff helped launch a practice that focused on understanding customer value and defining functional specifications. This practice, which involves working with companies to define customer value, translates these requirements into functional specifications, which then translates into technical specifications that translates into the work that is being done. The practice evolved from helping clients drive growth in a market with potential opportunities. Jeff learned how to do this by working with people who knew how to do things like functional discovery and functional specification development. This led to the development of various product development programs, including consumer products, high tech, and healthcare. The practice began in traditional industries like automotive, industrial, and electronics but expanded to areas like consumer products, high tech, and healthcare.  Product Development Practice In the product development practice, some classic project types include product platforming, product development roadmaps, and product teardown projects. These projects help identify market applicability, customer needs, and the platform that needs to be put in place to have a range of product capability. By understanding how to think about the platform from both a hardware and software point of view, the product development roadmap can be managed to get products to market faster, with each product being cheaper to produce and having a competitive price point. Jeff shares one example of a project that was involved in a major acquisition included doing a product platforming strategy and a product development roadmap. This helped identify the range of market applicability, customer needs, and the platform that needs to be put in place to maximize the amount of commonality across the product line. By understanding how to think about the platform from both a hardware and software point of view, the product development roadmap could be managed in a way that got the product to market faster. Jeff also talks about reverse engineering.  Current Positions and Interests Jeff has been teaching at the University of Michigan, focusing on business and customer discovery. He teaches engineers that their designs need to be able to meet customer needs and be willing to pay for them. He also works with undergraduates in a consulting class at the business school, helping them develop turnaround strategies for companies in the avionics business. Jeff is an adjunct faculty member and has been doing this for about a dozen years. He is also involved in a startup consulting effort with his son, who worked for a small boutique firm called Magnet, which focuses on serving smaller companies, and he is an investor in various small, private equity owned and startup companies. Timestamps: 03:39: Building Operations Capability in the 1980s  07:45: Challenges in Creating Career Paths for Experts  09:55: Role of Experts in Projects  12:10: Evolution of Career Paths in the 1990s  17:10: Impact of Operations Practice on Industry Practices  31:36: Knowledge Initiatives and Model Factories  36:31: Product Development Practice  43:34: Reverse Engineering Projects  Links: Company website: <a href= "https://shorewaypartners.com/">https://shorewaypartners.com/</a> LinkedIn: <a href= "https://www.linkedin.com/in/jeff-sinclair-87a7392b/">https://www.linkedin.com/in/jeff-sinclair-87a7392b/</a> Michigan Ross: <a href= "https://michiganross.umich.edu/faculty-research/faculty/jeff-sinclair"> https://michiganross.umich.edu/faculty-research/faculty/jeff-sinclair</a>   Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at <a href="http://www.umbrex.com.">www.umbrex.com.</a>

<description>&lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Jeff Sinclair, a senior global leader at McKinsey, discusses the history of operations at the firm. The firm was initially known as a strategy firm and did some organization and marketing work. However, in the 1980s, clients began to draw more attention to operations, particularly in the automotive industry in Europe and North America. Operations became a strategic function for automotive OEMs and part suppliers, as they needed to serve their customers with high quality, cost-effective, and operationally effective services.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Operations Practice at McKinsey&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;When Jeff joined the firm in 1981, there were about 500 people in the firm. Today, it is estimated that there are 40,000 people worldwide. The firm started building its operations capability in the 80s by recruiting people with specific functional expertise, particularly in manufacturing. They started hiring people from Toyota Supplier Support Center, and creating a well-defined career path within the firm, which is the specialist path or expert path. The operations practice was at the leading edge of other functional practices, such as marketing, market research, and organization. However, the firm had to create new career paths, which led to many iterations of the expert path. The firm had to continuously improve how it recognized and understood their contributions beyond the traditional generalist path.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Bureaucratic Maneuvering in Creating a Career Path&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Jeff discusses the transition from a strong culture to multiple career paths within McKinsey. He explains that this change took about 18 years and was driven by the firm's strong culture and the willingness of senior partners in positions of power to help navigate the new path.&lt;/span&gt; &lt;span style="font-size: 10pt;"&gt;As employees advanced in the firm, they had to develop relationships with senior executives, which led to ongoing opportunities to serve them. This made it difficult for experts to fit in and develop new service lines and ways of thinking about problem-solving. The firm struggled to recognize the contribution of subject matter expertise to their ability to serve clients and give them credit for developing new service lines and ways of helping clients execute more effectively. Experts were used on projects in a mixture of subject matter expertise, consulting  director roles, and full-time execution people. &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;The Evolution of Consultants at McKinsey &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The firm gave some of the personnel role responsibility to the functional practices themselves, hiring lean manufacturing or supply chain experts into the practice. They would take over the personnel development role, evaluation of performance, counseling, and coaching on how to evolve these new career paths. Over time, the firm recognized the high value added contribution of functional practices and expanded its service to clients. While there is still a tension between generalist and specialist paths within McKinsey today, it has improved significantly. Bob Sternfels, the managing director of the firm, was a functional practice leader who recognized the level of contribution of functional practices and grew the career path within the firm.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;McKinsey’s Expansion into other Industries&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The firm's operations practice evolved from a dominant career path of the generalist partner to a more diverse range of ways of delivering value for clients. The firm initially faced resistance from some office leaders who believed that the new approach would lead to professional suicide. However, over time, the firm embraced the idea of having multiple functional practices, including the operations practice. In the 90s, McKinsey expanded its service to healthcare providers, which led to the growth of the operations practice. This led to the development of Lean principles, such as the Toyota Production System, which were applied in various industries, such as healthcare, consumer goods, and banking. These principles allowed the firm to create real value in areas where people didn't expect it. One example of this transformation is the expansion of the healthcare practice into other industries, such as consumer goods and banking. This allowed the firm to draw in functional expertise from other industries, such as manufacturing and supply chain management, which allowed them to create real value in these areas.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;The McKinsey Impact &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Jeff talks about the impact of McKinsey's operations practice on various industries in America. McKinsey has contributed to changes in healthcare operating theaters and hospitals, and even hospitals that didn't work with McKinsey may have learned from their projects. Jeff emphasizes the importance of a partnership within the firm, as it takes many people to make things happen. He believes that McKinsey's strengths lie in its ability to nurture the capability to grow and work with industry practices to deliver functional capabilities to clients. &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;The McKinsey Framework&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The firm organized itself to develop partnerships with industry practices and work in the wholesale fashion, and working in the retail side of the firm for example. They continuously invested in new knowledge, both bringing in established knowledge and developing their own. They also worked on career paths and managed practices and enterprise, creating a four-part framework of client knowledge, people, and infrastructure to build a practice. This framework was explicitly managed through the 90s and 2000s to create functional practices as legitimate entities in parallel with offices and industry practices, ensuring co-equalization between industry practice and functional practice.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Building Manufacturing Capability&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Jeff shares his experiences with building manufacturing capability in a company. He partnered with Felix Brooke to understand and codify the technical, management, and people leadership systems that drive performance transformation. This expanded to include processes in healthcare and banking. Jeff also discusses the importance of understanding the current state of operational capability in an organization and applying Lean thinking at the overall organizational culture and capability building level. Jeff also emphasizes the need to invest in understanding how to design the operating and management systems, train people, build capability, and use pilot projects to demonstrate their effectiveness.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Investment in Knowledge Project Work&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;The conversation turns to the firm's investment in knowledge project work, which includes research and application engineering. McKinsey excels at translating various theories into service delivery capability service lines for clients. The firm invests a significant amount every year, spending more than the top five business schools combined on research and development of new service lines. They sponsor projects across multiple functional practices, including operations practice, to take their current knowledge to the next level and serve clients more effectively.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Capability Building and Transformation&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;McKinsey has developed a network of model factories around the world for capability building and transformation in manufacturing operations. The model factories are physical locations where McKinsey teams can bring client people in and train them in a simulated environment. The firm recognized that training for capability building in many organizations was weak. They formed teams around the world to identify the modules that people need to learn, such as lean principles, rapid change over stamping operations, pull scheduling, and the Kanban methodology. They codified and made tangible the processes. Over time, they accumulated multiple projects and started building knowledge outside of the manufacturing operation. To provide client training, the firm built multiple factories around the world. The first model factory was started in Germany. These small model factories were 15 to 20,000 square feet with real operations within them. These models helped with client training. The model factories were designed to provide a realistic experience for clients and to help clients learn and adapt to the changing needs of their operations.&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;On Building a Practice&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Jeff helped launch a practice that focused on understanding customer value and defining functional specifications. This practice, which involves working with companies to define customer value, translates these requirements into functional specifications, which then translates into technical specifications that translates into the work that is being done. The practice evolved from helping clients drive growth in a market with potential opportunities. Jeff learned how to do this by working with people who knew how to do things like functional discovery and functional specification development. This led to the development of various product development programs, including consumer products, high tech, and healthcare. The practice began in traditional industries like automotive, industrial, and electronics but expanded to areas like consumer products, high tech, and healthcare. &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Product Development Practice&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;In the product development practice, some classic project types include product platforming, product development roadmaps, and product teardown projects. These projects help identify market applicability, customer needs, and the platform that needs to be put in place to have a range of product capability. By understanding how to think about the platform from both a hardware and software point of view, the product development roadmap can be managed to get products to market faster, with each product being cheaper to produce and having a competitive price point. Jeff shares one example of a project that was involved in a major acquisition included doing a product platforming strategy and a product development roadmap. This helped identify the range of market applicability, customer needs, and the platform that needs to be put in place to maximize the amount of commonality across the product line. By understanding how to think about the platform from both a hardware and software point of view, the product development roadmap could be managed in a way that got the product to market faster. Jeff also talks about reverse engineering. &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style="font-size: 10pt;"&gt;Current Positions and Interests&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Jeff has been teaching at the University of Michigan, focusing on business and customer discovery. He teaches engineers that their designs need to be able to meet customer needs and be willing to pay for them. He also works with undergraduates in a consulting class at the business school, helping them develop turnaround strategies for companies in the avionics business. Jeff is an adjunct faculty member and has been doing this for about a dozen years. He is also involved in a startup consulting effort with his son, who worked for a small boutique firm called Magnet, which focuses on serving smaller companies, and he is an investor in various small, private equity owned and startup companies.&lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Timestamps:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;03:39: Building Operations Capability in the 1980s &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;07:45: Challenges in Creating Career Paths for Experts &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;09:55: Role of Experts in Projects &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;12:10: Evolution of Career Paths in the 1990s &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;17:10: Impact of Operations Practice on Industry Practices &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;31:36: Knowledge Initiatives and Model Factories &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;36:31: Product Development Practice &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;43:34: Reverse Engineering Projects &lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;&lt;span style= "font-size: 10pt;"&gt;Links:&lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Company website: &lt;a href= "https://shorewaypartners.com/"&gt;https://shorewaypartners.com/&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;LinkedIn: &lt;a href= "https://www.linkedin.com/in/jeff-sinclair-87a7392b/"&gt;https://www.linkedin.com/in/jeff-sinclair-87a7392b/&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Michigan Ross: &lt;a href= "https://michiganross.umich.edu/faculty-research/faculty/jeff-sinclair"&gt; https://michiganross.umich.edu/faculty-research/faculty/jeff-sinclair&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p dir="ltr"&gt; &lt;/p&gt; &lt;p dir="ltr"&gt;&lt;span style="font-size: 10pt;"&gt;Unleashed is produced by Umbrex, which has a mission of connecting independent management consultants with one another, creating opportunities for members to meet, build relationships, and share lessons learned. Learn more at &lt;a href="http://www.umbrex.com."&gt;www.umbrex.com.&lt;/a&gt;&lt;/span&gt;&lt;/p&gt; &lt;p&gt; &lt;/p&gt;</description>

Jeff Sinclair, a senior global leader at McKinsey, discusses the history of operations at the firm. The firm was initially known as a strategy firm and did some organization and marketing work. However, in the 1980s, clients began to draw more...

600. Jeff Sinclair, The History of the Operations Practice at McKinsey

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