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The Essentials of the CEO Role
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Arc Venture Studio - In May, Arc opened its Assistive Technology office in Denver where Arc companies Boogaloo Beds, Skoog, Start, TippyTalk and Uptimize are now sharing inside sales, marketing and PR teams.
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While the nuances of a CEO position reflect some organizational specifics, the key goal is fundamentally the same everywhere: CEOs must increase the value of the enterprise, whether for shareholders or private ownership. And in order to build that value, CEOs must first build overwhelming confidence among the board in the CEO's ability to lead the company and achieve that goal.
In our work with our advisory and portfolio companies, we've seen that creating that confidence comes first and foremost when CEOs keep their word to the board - what they say they will do is what happens. This means that as CEO, you cannot only give good news and lofty projections to the board - they need you to share
all
the news, good or bad, and to demonstrate a firm understanding of the reality on the ground. If things go awry, they want to know that you've learned those lessons and will make adjustments. Ultimately, the board should see your expectations and projections - positive and negative - happening within 5 or 10 percent of what you say, meaning they can focus less on questioning your assumptions, and more on what they can do to help you achieve company objectives.
So with a goal of building value and a job that's focused on building trust, how should a CEO spend their time? We recommend the following breakdown among three essential areas:
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Managing cash
: More than
50% of your time
should be spent on driving revenue, managing expenses, investing resources, and raising capital.
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Building the value proposition
: About
30% of your time
should go toward moving your product from a nice-to-have to a must-have. It's tempting to spend the bulk of your time here, but without healthy cash flow, you'll never truly get here.
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Growing leadership capacity:
The remaining
20% of your time
should be focused on making sure those in your organization can make decisions, understand what's going on, can articulate the goals and strategy of the company, and make modifications as needed. Just as with the CEO to the board, the organizational leaders must be accurate - with good and bad news - with the CEO. Building that capacity must be done intentionally, however, and is often overlooked.
One proven tactic for building leadership capacity is to have a monthly 30-minute meeting with each staff member along these lines:
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Here's what I said I'd do last month, and here's what I actually did last month.
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Based on that, here's my plan for next month.
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Here's what I learned, and here's what I need to learn.
Done monthly, this simple format - because no company can wait 12 months for annual reviews to make adjustments! - will help staff grow and
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Kevin and Rita met with the ChatterHigh team at the Arc Capital Development office in Denver.
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develop, which in turn allows a CEO to cultivate the deep understanding of the business needed to solidify board confidence and drive the increased value of the company.
Finally, if you're looking for additional insight on how to make these and other tactics work for your company, drop us a line at info@arccd.com
to learn more.
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What to Know About School Buyer Mindsets
Just as physicians promise during the Hippocratic Oath - "first, do no harm" - you'll often find that school leaders are similarly focused on doing no harm, leading to a cautious mindset. Because public school buyers are using taxpayer money and serving the community, their risk tolerance is limited. Meanwhile, you, as an entrepreneur, most likely have a different risk tolerance. Thus, in your value proposition, it's important to take their perspective and address that natural sense of caution by providing them with testimonials and connecting them with similar schools. This is also an important factor in offering pilots and realizing that there is safety in numbers.
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Arc Portfolio News
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Rita kicked off the CaptiVoice partnership with David Wolpert at the Schoology office. |
Arc Social Impact Fund II
Arc is
closing its second social impact fund, which will target Seed Stage investments in the PreK-to-12 and Special Needs markets. Like our first fund, this fund is composed of several industry leaders and experienced operators looking to assist young companies. The fund plans to invest in early stage companies whose missions include making a sustainable, positive social impact in the education and special needs sectors.
Choosito Highlighted as AI Education Disruptor
Arc Portfolio company
Choosito
was
profiled
recently by blockchain technology site Disruptor Daily on Choosito's work at the intersection of AI and education.
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Kevin gave the opening keynote to the XR Assistive Tech conference in Boston, speaking about how the convergence of assistive technologies with augmented virtual reality is impacting education. |
TechPilot Labs Acquired by Securly Arc Family Company TechPilot Labs, which provides mobile device and classroom technology management products to hundreds of school districts, was recently acquired by Securly, which "develops solutions that keep kids safe and engaged online, at school, and at home."
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Content Creation, Editing, and Strategy Services
Looking to create, edit, lay out or put some strategy behind your content for presentations, reports, fact sheets, website, social media, or blogs? Need some support for your marketing and communications team, but not ready to hire full-time? Arc's long-time writer, Melissa Nilles, is currently transitioning to full-time consulting and taking on new clients. Her website is in the works, and you can find her on
LinkedIn
and reach her by e-mail [
melissa.a.nilles@gmail.com
] for any needs, whether a single project or ongoing work.
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Opportunities and Resources
Milken-Penn GSE Education Business Plan Competition Finals
If you're in the Philadelphia area on October 7, please join us for the 10th anniversary of the
Education Business Plan Competition
. Finalists will pitch their ventures live and compete for over $100,000 in cash and prizes. Past EBPC winners and finalists, entrepreneurs, educators, business leaders, investors, and researchers will also be showcased in a celebration of innovation in worldwide education. (Since 2010, winners and finalists have gone on to secure more than $135 million in funding.) RSVP
here
for the free event, taking place October 7, 10 am - 4 pm, at the University of Pennsylvania's Houston Hall (3417 Spruce Street, Philadelphia, PA 19104).
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Rita and Kevin met with the iSchool Initiative's amazing team, led by Travis Allen, Arvin Ross, Nikola Kolev, Joey Ruse, and Michael Edwards.
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edWeb Professional Learning Community: Leveraging Title IIA
Sponsored by
SETDA and the Bill & Melinda Gates Foundation
, this
free online forum
brings district and state Title IIA leaders together to learn how to effectively implement the federal Title IIA program through sharing best practices and information on evidence-based professional learning opportunities at the state and district levels.
Census Statistics Highlight How Graduates Move into Workforce
Check out the U.S. Census Bureau's
Post-Secondary Employment Outcomes
(PSEO), which shows where college graduates get jobs and in what industries. "The data address a major gap in education statistics by providing a much clearer picture of how graduates transition from school
to employment."
report
projecting that 120 million workers will need retraining over thenext three years due to AI and automation advances.
However, the report also notes that employees may still have the skills
companies value most - soft skills like time
management, adaptability, and teamwork.
5 Big Ed-Tech Problems to Sol
ve in 2020
This
Education Week Q&A
with Richard Culatta, CEO of the International Society for Technology in Education, addresses key tech topics facing educators in the coming school year, including teaching artificial intelligence and how to go beyond coding in computer science.
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Government Relations Update
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Rita visited with BirdBrain Technologies LLC CEO Tom Lauwers to learn about their innovative robotic kits for students of all ages, including the Hummingbird Kit seen here. |
Innovation in Higher and Vocational Education
In two pieces, Politico dives into education innovation across the country, looking at
how cities are experimenting with higher education
, and how schools in ten states are using the
P-TECH program
to prepare students for well-paying, in-demand trades.
National Assessment Governing Board Seeks Members The National Assessment Governing Board "sets policy for the nation's largest ongoing assessment of what U.S. students know and can do-the National Assessment of Educational Progress (NAEP), also known as The Nation's Report Card." The board is currently seeking members for specific roles. To learn more or submit a nomination (by October 18), visit the NAGB page .
Education is a regulated industry. If you are selling at the federal or state level, you need to intimately understand the dynamics at work to be effective. For more on how Arc can help you navigate government relations at every level, contact rita@arccd.com.
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Recent and Upcoming Events
September
November
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11/12-14: ETS Offices with ETS LearnLaunch Accelerator, Princeton, NJ (Rita)
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11/14-15: Non-Public School Conference, Chicago (Kevin attending)
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11/17: EdEntrepreneurship Graduate Class, PennGSE, Philadelphia (Rita)
- 11/18: Catalyst Selling Bootcamp, PennGSE, Philadelphia (Rita)
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What Arc is Looking for Now
Arc is looking to work with a few select growing education technology companies in an advisory, board or coaching role. More than 80 percent of the companies that have worked with Arc received an external capital infusion or acquisition offers within a year. Arc will also consider a few investment opportunities. If you know of a company positioned for strategic growth, please let us know.
Finally, because education is a regulated industry, education companies need to incorporate a government relations plan in order to optimize revenue. Arc's strong government and grassroots relationships, education industry expertise and business acumen allow for successful advocacy at both the federal and state levels. Check out our Web site at
arccd.com or e-mail us at
info@arccd.com.
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