Cory Williams, former CEO of Optima Corporation believes that getting the right people in business is everything “Business is about people. There are lots of examples of people who have made good money without a good product. Equally, there are plenty of good ideas that go nowhere. It’s not about the product; it’s about people: McDonalds don’t make good hamburgers!”
Former ICEHOUSE resident Optima Corporation, or Optimal Decision Technologies (ODT), as it was then known, has evolved from a consultancy business, founded and staffed by highly skilled mathematicians from the University of Auckland, into a high growth, high-tech firm. It was the team-building skill and expertise of The ICEHOUSE, and the willingness of its founders to adapt the business , which were key to its success, says Williams.
Identifying the gaps
ODT moved into The ICEHOUSE when it’s founders realised the potential of their new software product SIREN, an advanced simulation system for emergency services. Like all new entrants, The ICEHOUSE assigned a mentor to the company who was experienced in guiding start-up companies.
To build the commercial viability of the firm, the mentor suggested that an experienced, international salesperson be appointed. Soon after this happened, the company won new sales contracts in three different continents. But far from this being a time to celebrate, says Williams, this was “potentially suicidal” if the firm didn’t move rapidly to manage its growth. “You think the world has opened up because you’ve made those sales, but in fact it’s the devil in disguise.”
This represents a critical point in a company’s evolution because it is a stage when so many companies fail, unable to cope with the growth pressures, soaring costs and new stresses placed on the management team, says Williams. “This is where The ICEHOUSE is of enormous value, because the people of The ICEHOUSE help you prepare for what’s ahead to make sure you don’t go out of business.”
Moving to the next stage
ODT needed capital to fund its expansion and support the sales effort. “There’s a long time between winning a contract and seeing the money,” says Williams. To raise capital, you need the right team - people who are going to impress potential investors, he says.
At this time, Williams, a trained accountant with experience of early stage-technology businesses, was head of The ICEHOUSE’s ICE Angels: a network of experienced, private investors, brought together by The ICEHOUSE to invest in early stage ventures. With limited time available, ODT’s mentor approached Williams to assist them in getting the company investment ready. But it was decided a more radical shift was needed and Williams was asked to takeover the top spot.
Again The ICEHOUSE was invaluable, says Williams, playing an intermediate role, smoothing the path and supporting the need for change with experienced know-how. Very seldom does the same CEO take a company through all its growth phases. The most successful CEOs, are those who know the limit of their skills and are savvy enough to step aside, he says.
With a new CEO on board, the next area to tackle was the board, says Williams. “If a firm’s founders are serious about raising money, they need to indicate to the market that they are serious about making significant changes to the way they do things…they need a commercial board.” Key to this was appointing independent people with experience in guiding companies through the early growth stages. ODT appointed its erstwhile mentor as chairman and set up an advisory board to retain the skills of the company’s more academically-inclined founders.
Becoming a global company
With the beginnings of a new board and a new management team, ODT successfully raised $1.3 million from the ICE Angels , the biggest single investment made by the group to date. An investor representative was the last appointee to the board, bringing additional expertise in managing larger, high-tech firms.
ODT changed its name to the Optima Corporation in January 2006, when it graduated from the ICEHOUSE - it’s new name reflecting its new international standing, with its flagship products now in use in Australia, North America and the UK.
But Optima still draws on The ICEHOUSE’s invaluable network of experienced business contacts, says Williams. “The ICEHOUSE can get to almost anyone. And in terms of getting capital and advice, there’s almost nothing in New Zealand that this network can’t do. So it’s very much an ongoing relationship for us.”
Need help building your team?
Contact Ken Erskine, Director, Start-Ups, 09 308 6213 or 021 848 383 or by email.