Documens Boss

For those of you not familiar with the Zulu
principle, let me explain further.

The Zule Principle

The Zulu Principle was made popular by a book written by Jim Slater, who used the principle of investing in stocks and becoming an expert in a niche field.  The story that this principle was based upon was a man who became fascinated by Zulus and devoured every book in his local library on the subject. 

During his studies he found the names of two people who were regarded as the world’s leading authorities on Zulus.  He wrote to both of them and asked them various questions.  After a few months of correspondence, the first expert invited the man to spend a week with him to discuss the subject in more detail.  They met and spent time together and the man learnt a lot more about Zulus - more than he had learnt in all the books he had read. 

When he returned home he wrote to the other leading expert on Zulus and asked if he could spend some time with him.  The second expert also agreed and again, the man learnt more.  Within a relatively short time he subsequently became the world’s leading expert and his career changed forever. 

Accurate Fast and Pertinent Information

To complete successful acquisitions you need accurate information on which to base an informed decision, quickly.  You also need to acquire this information without it distracting you from the normal tasks within your business. Finding acquisition opportunities is not usually the issue; finding the “right” opportunities is - and then, even more importantly, closing those opportunities. 

If we looked at the value of finding opportunities on a scale of 1 to 10, the finding is probably a 1.  Most medium to large organisations in our sector have acquisitions thrown at them sometimes everyday.  This takes up time wading through them and quite often it is like looking for a needle in a haystack only to find that the needle never was in the haystack in the first place.  Consequently, finding the right opportunities would be a 4 and closing those “right” opportunities is a 5.  Many executives just don’t get that.  They suffer from a deluge of information but a lack of real choices that fit their requirements.  The time spent examining these opportunities can be fruitless especially if they are looking for a "five legged sheep". They need accurate information.  Does such an opportunity that they are seeking exist and is it available  at a price they are willing to pay.  This lack of information and needless sifting is a waste of valuable management time. 

Wasting Time Kills Deals and Companies

The lack of time can be an ever increasing problem that grows over time, picking up speed like a runaway train, to the extent that individual executives, to justify their time spent on the process, are almost forced to make an acquisition happen, even when they know that it is probably not a great fit.  Companies often suffer whilst their business leaders distract themselves looking at possible acquisitions.  They need to keep focussed and keep running their business regardless.

The keys are:

1) the right choice not MORE choice
2) clear acquisition objectives
3) accurate information on the company and sector
4) early qualification out or in
5) an objective view

If acquisitions are part of your strategy then perhaps you should consider speaking to some ECM Zulu’s.  If you don’t know where these useful ECM Zulu’s hang out then let me know.