When one of Park Place International’s engineers bring him ideas, Ed Kenty listens.
“You have to listen to youremployees; oftentimes, goodideas come from your employeebase,” says the president andCEO of Park Place, which increased revenue from $19.7 million in 2005 to $34 million in 2007.
As an example, the IT serviceprovider firm stepped up itspreventive maintenance program on the recommendationof an engineer, which increasedcustomer satisfaction and contract renewal rates withoutstraying too far from the company’s core business.
Smart Business spoke withKenty about how to stick withyour core business and whyyou should resist the lure of ashort-term cash cow if it clashes with your long-term strategy.
Q. What mistakes dobusinesses make thatcause them to fail?
You can’t depart from yourcore competencies. You haveto really stay the course, overcome the challenges. If youbelieve in your vision, believein your goals and you’re verypurposeful in your attempt toget there — you just can’tallow yourself to be distracted.
There are a lot of things thatappear to be cash cows or thingsyou could immediately [do to]drive some revenue, whichmay have a short-term benefitto the organization, but it does-n’t fit into the long-term strategy. Just stay focused on yourcore competencies. Calculaterisks, but don’t be afraid totake a risk — just measurewhat the impact may be.
Q. How do you decidewhether new business wouldstretch you too far?
You have to define whatyou’re good at. Establish yourcore competencies — whatmakes sense, what you do well.From that, you can expandthat. You’re not going to doanything radically different.
We’re not going to go serviceATMs, for example, becausewe’ve never done thatbefore.
