Todd Saxton's Blog

Like many in Central Indiana and beyond, I anxiously awaited (dreaded?) the news about Peyton Manning. And like many I was disappointed by the outcome. But I am not here to join the pundits waxing poetic as why it happened, where #18 will go, or who is to blame. No, as a Management professor with a focus on Strategy and Entrepreneurship, I’d like to focus on one aspect about the news over the last 3 months that disturbed me: The distinction that this was a “business decision” and the implications of what that entails.

So what does this mean? A business decision as opposed to…what? I looked back through much of the press over the breakup announced today, and interestingly there are few direct alternatives explicitly named. A business versus a philanthropic decision? Versus a “non-pareto optimal” decision (a nod to our economist friends)? Perhaps the alternative would be a Ouija board decision?

A decision based on relationships seems to be the preferred interpretation of an alternative. This was all about the Benjamins, not the good will Peyton may have generated, his role in the community, or what this means for the team and NFL. No, this was just about $$. And that makes it a “business decision.” (You almost want to spit that out, don’t you?)

I teach strategy to practicing managers and executives in Central Indiana and in the Kelley Direct online program, which reaches savvy business folks worldwide. I have had the privilege of advising executives and boards of firms large and small, old and new. And I doubt that ANY of the experienced businesspeople I have come in contact with would tell you that “business decisions” are purely economic. In fact, most would argue that it is the people and the relationships between them that most directly affect the success of an organization, whether a new venture or ongoing concern, for-profit or not-for-profit. To aver that business decisions and relationship decisions are on opposing ends of some rationality continuum is an insult to businesspeople, as well as the readers of the articles that directly or indirectly imply such a contrast. Business is ALL about relationships.

As such, Peyton leaving Indianapolis was a relationship AND business decision. The two are inextricably linked. I am sure that the powers that be (OK, might as well say it—Mr. Irsay) recognized that this was not a decision about just dollars and one person, or even A Tale of Two Quarterbacks (Mr. Kravitz, a great title idea for a book you might publish in the future on this chapter in Colts history!).  The relationships involved extend to the team, the community, and the public perception of the NFL overall. We can only assume that someone of Mr. Irsay’s experience and savvy fully understands that we know it is about more than money. Do people pay crazy amounts of money for tickets because of the “product?” For access to the good value beer, hot dogs, and NFL gear? I think not—it is to be part of an experience that gives meaning to our lives. Anything that reduces that to a “show me the money” mentality really misses the boat. So I trust that the decision here weighed these intangibles appropriately.

Corporate America has gotten a bad rap over the last few years as being self-indulgent, greedy, and full of hubris. This is a far cry from the majority of entrepreneurs, managers, and corporate leaders I have had the opportunity to know and teach or work with over the years. So yes, this may have been a business decision, but relationships were first and foremost—and to associate “business decisions” with a lack of soul, devoid of sensitivity to the people involved, is inaccurate and unjust.

A closing note…I look forward to cheering for Peyton Manning wherever he ends up. I also suggest we not hold Andrew Luck, assuming he is the choice come draft day, to any specific expectations or blame him or the Colts organization if he does not measure up to #18. He is by all reports a promising quarterback and a fine young man—let’s let him decide how he will express that in coming years.

This is always one of my favorite times in the semester—when the DIVE project teams meet with their ventures to kick off projects. What is DIVE? DIVE is an acronym for the Discovery, Innovation, and Ventures Enterprise. It is made up of students in our Evening MBA program with an interest in venturing in some way —which might include starting their own company, joining a high-growth venture, or working with investors and entrepreneurs as a service provider (e.g., attorney, banking, consulting, etc.). The Evening MBA program of the IU Kelley School also has enterprises in supply chain management (gSCIE) and finance (FIND). The enterprises are key components of our graduate experience. Projects typically run from January through May/June.

As Director of DIVE (though I prefer “DIVE Master”) I accept about 20 folks each year who have gotten through most of the core classes—strategy, accounting, finance, economics, marketing, and operations—and are prepared to lend their expertise and training to a venture. DIVErs get real-world exposure to venture challenges such as funding, market focus, and operations with lean resources. It is a big step from the classroom to the venture world. Through the DIVE experience, these folks learn a lot more about the world of venturing, and if they really want to join that world! Of course, our DIVErs are the best of our top MBA students—which is saying a lot. DIVE is also a key differentiator in our entrepreneurship program.

What do the ventures get out of it? Well, these founders typically have limited managerial “bench strength” and face a variety of barriers to launch and/or growth. Our DIVE students not only have strong training in core functional areas, but also great experience in industry—including current active connections and a network. That is one advantage of the Kelley School locating its Evening MBA program in Indy—great access to the business and venture community and associated network.

We have connected with DeveloperTown this year for a number of DIVE projects. DeveloperTown (DT) is a really cool IT and software development company based in Broad Ripple. By partnering with clients, often young high potential start-ups, DT helps develop a robust technology infrastructure necessary for growth—but takes an equity position so it doesn’t cost an arm and a leg. DT also has a unique and really interesting structure. Each Developer has his or her own “house” in DeveloperTown to decorate and call home. When projects require collaboration, the developers can literally roll their houses together. Of course, having our DIVErs work with serial entrepreneurs like Michael Cloran and John Wechsler (partners at DT) is a big bonus.

As usual, we have a great range of projects and ventures to work with this year. We have some pre-revenue true start-ups like:

•  Musical DNA, who is developing a new approach combining 3D graphics and gaming elements for music education
• uFlavor, a customized beverage company
• TransitionU, a venture helping students bridge the transition from high school to college successfully
• FAST Biotech, taking a revolutionary technology for assessing kidney function real-time to market.

Other projects will involve helping high growth ventures figure out new markets and opportunities—such as Triton Brewing, a craft brewery with strong momentum, and Courseload, a venture working with universities on eTexts to help lower the exorbitant costs of college textbooks and take advantage of enhanced interaction through technology as well.

Rounding out the mix is a social venture in the Dominican Republic called EcoBricks, for which the students will help develop a sustainable business model to transform waste into building materials.

In coming weeks I hope to share more about each of these projects—in the meantime, I love hearing about the cool things going on in our local venture community, and learning more about our DIVErs and how they plan to help these ventures. These companies will do great things, and we hope DIVE can play a part. So DIVErs down—and game on!