hi leeza :)
i have a few thoughts on leadership, and you are oh so right, it is the companies that lead out of tough times that typically make the biggest gains once a recovery is in full swing.
1. leaders diversify wisely - not at the expense of diluting their focus, or splitting limited assets among various endeavors. leaders diversify when they wish to carve a whole new market that promises high yield returns.
smtc is well diversified, at the expense sometimes of being criticized for not being more weighted to one sector like communications. think about it though, smtc is a leader in communications, power management, mixed signal, test, computers, mobile phone, and other markets.
smart diversification that establishes front runner position in varied markets is an example of leadership.
2. margins, margins, margins ... there is no substitute for profit. leaders are constantly attacking margins, squeezing a few basis points here, a few there to continually whittle away at costs. the leaders are almost single minded determined to improve margins.
3. anticipation, business sense, unnatural senses ... whatever you call it, it amounts to good foresight, vision, and executing a solid and well-thought out business plan that works to achieve that vision. good leaders lead good companies ... the management team is job 1 to ensure success.
4. size matters :o) leaders several times appear to begin life as mid-caps, where there is a potential for explosive growth as their business grows. it seems much easier to grow a smaller company than an established monster.
you know all this already, but we can all use some time to focus on these ideas.
---off topic--- i think psta is a company like that, take a look, map its performance over the past 1 to 3 years to about any company you'd like. boring ... except for the fact it yields a great return, and therefore fits in the category of leader.
i want to ask a question related to this topic. what is smtc doing in the area of HID (human interface device)?
i know they bought USR, which was involved in this field. they were involved in usb (a technology i believe in, along with IEEE 1394 firewire), and ergonomic items like mice, keyboards, etc.
its about time for some stuff to pop up in this arena. it seems there is a huge market to tap into. little devices attached to a wireless palm or other device that monitors patient blood pressure, heart rate, temperature, or other statistic.
car accessories, numerous small web appliances (they'll be here in due time), interface devices for the house of the future.
i hope the creative work that went on at USR is converted into bucks at smtc. it's a great company to make it happen, and i think it could be big.
best regards leeza, jb |
