When an IT consultancy started in the early 1990s budgets were tight and advertising was an unaffordable dream. Networking brought in the clients.
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Entrepreneur: Graeme Jones, Chief Executive Officer
Company: Graeme V Jones and Associates Pty Ltd
Business type: Management consultancy offering systems-integration services and recruitment consulting
Employees: 150 full-time, 70 contractors
Turnover: (2006 - 2007) $29.4M
Head office: Melbourne, Victoria
Contact details: +61 3 9600 1888
The Graeme V Jones Story
Running a successful enterprise resource planning company is a long way from commanding a troop of tanks in the Vietnam War. But for Graeme Jones, seven years in the Australian Army was a good career move. Jones says: "When I came back home I was a staff captain, working in personnel. The army sent me on a whole bunch of computer-training courses; when it was time to leave I had the skills to work in computing recruitment."
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Key learning points:
- New business - Networking helps cross the cold-call barrier by meeting potential clients informally on neutral ground.
- Formalised networking - To make networking work, it helps to formalise the process: assign socially competent staff to the job, have a calendar of networking events such as trade shows, and conduct an analysis of the effectiveness of each event.
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In 1990, after 10 years working in the industry, Jones saw a gap in the recruitment market for a more cost-effective approach to the business of finding staff with technology skills. He says: "Recruitment is a science. The largest expenditure decision any manager makes is to hire people. I felt this needed to be taken more seriously."
Jones took a gamble and founded Graeme V Jones and Associates (GVJA) to try and plug that recruiting need. The business has expanded from recruitment to implementing technology systems and information-technology contracting services. Jones says: "Because the nature of our business is project work, our clients are always changing but we usually have twelve major clients on our books at a time." GVJA's client list includes ANZ Banking Group, Boeing and Commonwealth Bank of Australia.
The Challenge
How to grow a business by using networks.
The Solution
When Jones established his business he wanted to offer a sophisticated, cost-effective approach to recruiting senior information-technology professionals. He says: "We developed a particular methodology that took the risk out of the recruitment process for the client. We are meticulous in our screening and reference checking and provide a shortlist of only two candidates." But funds were limited: he had to keep overheads low and forget about an advertising budget.
With few ways to alert the market to his presence, Jones needed a different strategy. Networking was the answer. He says: "I think networking is the most important strategy a business can have. We are a tier two company and are often competing with tier one companies such as IBM and Accenture. We need to network to build the reputation of our business."
As the business grew in the early 1990s Jones developed a simple networking strategy for his team: attend at least one industry function a month and grab any opportunity to talk to people about the business. Jones says: "Out-of-office networking is vital. There have been times when we have found it impossible to get an appointment with a client but when we meet up informally at a function the ice is broken."
GVJA exhibits at SAP and Oracle user group software trade shows in Australia every two months. These exhibitions provide opportunities to meet with potential clients - but, of course, they are also attended by all Jones's competitors. He says: "Five years ago, at a trade show we won a $7-million software implementation contract with the University of South Australia. This was a direct result of making the contact and inviting them to have a drink to discuss business further. Six months of serious negotiation followed, but it was that initial contact that opened the door for discussion."
Each such networking event is thoroughly evaluated by GVJA, which analyses the cost-benefit of attending the event to determine whether it is worth going to again. Jones says: "We always work out how much it cost and what we got out of it. We scrupulously analyse where our business has come from and can trace each contract back to each exhibition."
New product launches and official industry association events - such as the Australian Information Industry Association - provide further networking opportunities for staff. But Jones knows that not all staff members are good at networking in social situations. He says: "We employ a variety of people in technical and sales roles but we are a team. We don't put people in a situation where they don't feel comfortable otherwise they will just resent it." And in Jones's view what makes a good networker? "That's easy - someone who follows up each contact."
Jones says that spending time with potential clients in a social situation cannot always be viewed as networking. He says: "I don't see partying as networking. The clear overriding motivation must be to grow business and to talk about the business with pride."
For the past three years GVJA has hosted an annual corporate golf day for all staff and clients. Jones says: "About 80% of our attendees are current clients; this is a thank you for their support. We plan it like a military operation and ensure we match people together so that as well as enjoying golf it is a chance to build relationships."
Sometimes business opportunities occur at the most unlikely events as Jones discovered recently when he attended a football match as a guest of his bank manager. Jones says: "I met another guest and that meeting led to a $1.5-million software implementation contract - just from talking about what we do."
Jones says: "A project is like a marriage with time and financial strains. But we start each project as partners and deal with stresses in a mature way."
The Result
Graeme V Jones and Associates increased its turnover to $29.4 million in the 2006-2007 financial year. The company has survived three severe economic recessions during its 18 years. Jones says: "That's when we have to be even more proactive and work harder to find the business."
One of Jones's proudest boasts is that over 18 years, GVJA has completed every project within budget and on time. Few IT consultants can make that claim.