Jola Cloud Solutions' Blog

Deloitte says diversity takes various forms in a boardroom and can be broadly categorised into skills, expertise and experience. Having the optimal mix is paramount.

At Jola, we believe diverse boardrooms are often more successful because of the way they utilise the wide range of skills and experience at their disposal and the corporate culture they have cultivated. Diversity is part of our values and positively affects how we do business. It starts with an ingrained respect for others and a desire to work together to achieve a common goal. This influences how we innovate, our marketing style and the way we help partners to find and win lucrative deals.

Hiring people from diverse backgrounds can help to foster creativity and offer a range of perspectives and ideas. Employees are more likely to feel empowered to innovate in an environment where inclusivity is a priority.

Our focus at Jola is to find the best people, who share our values and train and support them so that they grow with us. Small things like changing our hours, flexible working, work experience programmes, graduate schemes, and apprenticeship programmes have all been successful for us. We coach people on how we communicate with each other, and we don’t tolerate discrimination of any kind. We are problem solvers, so if we find the right person and they face a challenge, we work with them to overcome it.

We don’t shout about it but we do have experienced channel professionals running our business who are generous with their time and have mentored, trained and inspired many of us in the channel. Watching and learning from others is the key in my view, which you can get from great people you work with, but also from networking both inside and outside of the channel. If we keep learning and inspiring and training others to come with us in our careers, removing barriers in our way, there is nothing stopping us. 

Jola celebrates its 9th birthday in April 2023, after its best-ever financial performance and in a year when it became the channel arm of Wireless Logic.

Jola has increased its partner base to over 1300 and continued its relentless product development, with a string of new products designed to help Jola partners differentiate their offerings and win major deals from the mobile networks direct. The Mobile Data Revenue Generator™ has been successful in helping partners to identify and win new business, increasing Average Revenue per Customer and reducing churn.

The channel has always thrived on technological change and compelling events like the 2025 PSTN switch-off is significant. To help partners capitalise on this, Jola developed a PSTN Replacement Toolkit which offers partners everything they need to replace PSTN lines with 4G/5G solutions. Combined with their Device as a Service proposition Jola partners do not need to pay any upfront costs and benefit from hardware replacement and upgrade options.

Andrew Dickinson, CEO of Jola commented, “In 2022 we closed the books on our eighth full year and were acquired by Wireless Logic. We continue to grow and invest in people, products, platforms and processes. We have a talented team here at Jola who are dedicated to supporting our growing partner base. It is great to see so many Jola partners building profitable revenue streams from our unique mobile data solutions.”

Jola was setup such that we would be ready to transact at any time. We didn’t know the exact date and we didn’t want management distracted from growing the business. So;

1. We operate a 3-year rolling financial plan, re-forecast quarterly for cash flow purposes. The first 12-months is the budget, which is fixed in April, followed by a 24-month outlook. There is a new draft 12+24 every January, finally signed off in March to start in April. In my experience operating only a 12-month budget and writing a business plan just when you need an IM is a mistake. We re-define and hone our strategy every year but this tends to be more about emphasis than direction. Our fundamental strategy has not changed since 2016 when we pivoted the company into mobile data. Our overall approach makes the production of an Information Memorandum much more straightforward.
2. We are paperless. This is really important for Due Diligence. All our IP is documented, and we had all our contracts and service agreements completed and checked by lawyers in the first year. We resist non-standard agreements, even down to insisting on our own NDA. If we have to amend our terms it is recorded and done via an addendum, A buyer’s lawyer is going to have to read everything in DD and very often the seller pays for this, so by minimising exceptions we cut out a lot of time and cost. We opened our data room the day we started Jola with £50k in 2014.
3. We made ourselves known to the market and started building relationships with PE very early. We focussed on specialist TMT Private Equity because they ‘get’ technology, won’t wince at the multiples and will help with origination of deal flow for a buy-and-build strategy. We talked to credible analysts like Megabuyte and were very open with them about our numbers and strategy. Some PE firms won’t do minority investments and some won’t do secondary-only so I found it saved time to be upfront about our intentions when approached by PE firms. Receiving offers from PE and growth funds is very affirming for both the strength/depth of management and the general and financial health and strategy of the business. However if you are immature in these respects but still want to raise money you could consider a syndicate (sometimes called deal-by-deal) arrangement. This only really works for a minority stake and you will still need an IM, but the due diligence, process is much lighter and shorter.
4. They say good advice is cheap but there is some very expensive bad advice out there too. For TMT Corporate Finance advice and deal assistance there are only a few in the UK I would recommend. My last deal was 2012 so to bring myself up to date I asked people I trust and respect about their recent experiences. This was invaluable. Above all we made sure we had the best CFO we could afford. We only needed someone part time when we weren’t transacting and we found the best CFOs were often plural anyway. Supported by Pinsent Masons, our CFO and I did all the heavy lifting on all deals, shielding the management team as best we could. We short-listed corporate lawyers for their track record and it was a bonus if they had worked for some of the buyers on our shortlist and knew their redlines and ‘gives’ on the SPA. Three legal firms bid for the work.
5. Most processes take around six months and we knew it was important not to lose focus and miss our numbers in that period. We didn’t want to make our investor nervous or give them a reason to try and chip us on the agreed price.
   

Recurring revenue businesses rely heavily on customer retention. It is tempting to focus all efforts on recruitment, but churning customers is a real concern for growing businesses.

Understanding and monitoring customer experience, can help to identify early warning signs, put in measures and reduce churn. By improving the customer experience, you can increase customer retention and revenue per customer, whilst also enhancing brand perceptions in the marketplace. By getting this process right, you create ‘fans’ of your business, ‘advocates’ who freely recommend your services to others and buy frequently from you.

In order to measure customer experience, you must first identify relevant KPIs. What are the measures in your business of customer satisfaction? Many companies use NPS (Net Promoter Score) which gives an overall satisfaction score. You ask the question: How likely are you to recommend us? You use an answer scale of one to ten. You may also want to ask more granular questions to understand satisfaction across each customer touch point.

Next think about what influences the satisfaction score. This can often be obtained through a comments box on your survey, or by calling a cross-section of clients to ask specific questions about their experience. Having the right products, at the right price, on the right management portals, is key, combined with excellent service and accurately and timely billing.

By surveying customers regularly and gathering feedback, you can identify any shortcomings and work with customers to improve them. Going the extra mile to fix a problem can save a churning customer, and when handled well, also turn them into an advocate.

Ambitious channel companies are always looking to recruit, develop and retain talented employees to help them grow. Statistics show that highly engaged and rewarded staff are more productive. Satisfied employees tend to be more loyal to the company and deliver higher levels of customer service.

Jola certainly thinks so, as they recently rolled out a very generous EMI scheme which is planned to deliver six figure pay-outs to their most loyal and high-performing employees. Jola’s EMI scheme grants share options to every employee. Jola employees are allotted a number of shares that they can buy and at the next transaction Jola employees will benefit from the increase they have created in the value of the business.

Andrew Dickinson, CEO commented, “We ran a similar scheme at Griffin and it was very successful. Each member of the team has a part to play in the growth of the company. They all have individual KPIs which contribute to the success of the business. We hold monthly meetings so every member of the team can see where we are against the growth target we are all working to. We have some brilliant talent within the business and it is important to us to reward everyone who works in Jola.”

As COVID restrictions were lifted, how has this affected your business? How do your employees feel about returning to the office? What is your plan to build both customer and employee confidence living with the virus going forwards? How are you planning to manage the risk of a COVID outbreak in the office and the impact it may have on the efficient running of your business?

During lockdown, we got used to a different way of working. We were forced to isolate and adapt to a new way of working. In the channel, we already had the technology and a work-from-anywhere ethos, but as many companies prepare to return to the office, the Jola team are making flexible working part of their benefits package.

Like many channel companies, we found the transition to working remotely an easy one. We were still able to answer 90% of calls within 20 seconds and reply to tickets within one working day. Productivity went through the roof in our sales team, who were able to book back-to-back meetings online without the need to plan in travel time. Partners were happy to be trained online, and the company benefitted from a reduction in expenses.

As the restrictions ease, it makes sense for some teams to return to the office to train and coach new starters and for others to keep working from home to develop new products without interruption. For the Jola team, it makes sense to offer flexible working to ensure a safe and productive workforce to support our future growth. 

With the current COVID restrictions still in place, many organisations have turned to online recruitment with varied results. What can employers do to ensure successful recruitment processes online?

Defining a strategy is a good place to start. What are your objectives? What is your strategy to achieve them, and how can this be measured? Preparation is key, and adapting your strategy to the new technology is essential.

Initial contact with candidates is often done over the phone, so this first step is easy to conduct over Teams. Second interviews are often more in-depth and so may be more challenging but not impossible if you adapt your tasks to work in a Team’s environment. Using case studies and role plays can help both behavioural and capability testing. Consistent and clear scoring is key to reduce the risk of unconscious bias influencing your decision.

Clear communication plan

Having a clearly defined candidate communication plan helps all parties gain a more consistent experience of the employer brand, encouraging more people to accept roles plus building a positive employer brand. Designing and shaping assessment messages not only offers reassurance and clarity but also mitigates business risks. 

Consistent measurement

Having the right measurements in place is key to ensure accurate assessment of candidates. It’s wise to trial and validate, just as in a traditional face-to-face assessment process.

Recording the process

The great benefit of online recruitment is the ability to easily record interviews to help compare candidates and involve additional parties for an independent view or second opinion.

Feedback

Sending feedback to candidates is an important part of the recruitment process. Successful candidates know exactly where they are in the process, and unsuccessful candidates can gain valuable feedback.

Most successful businesses subscribe to a credit rating agency for their prospective customers, but how many credit check suppliers?

You should, because:

1. If they go bust, they could take you with them.

When a company calls in the administrator, their suppliers will act immediately to mitigate financial risk - often cutting off supply. This may not matter in some industries, but where you have been reselling their service it could be disastrous. In the telecoms and utilities business your customers may suddenly find themselves without service. Not only do you then risk losing them, but you may have breached your own contract and be open to litigation. Even if the administrator is able to sell the contracts to someone else (often another supplier), or where the supplier has step-in, service may still be interrupted, and you may find yourself in a much worse position subsequently.

2. They may be poorly managed.

Excellent employees, with good judgement, do not choose to work for financially unstable employers. If the quality of your suppliers’ staff matters to you (e.g. where they are selling with you), avoid low credit scores. Also poorly managed companies are often difficult to deal with. If the relationship requires regular purchases and joint support of your customers, you may want to find another supplier.

3. They are unlikely to be investing in new products and services.

In many markets, companies without money to invest in product development find their core products are quickly commoditised, and they have to compete on price. Gross margins come under pressure and they are forced to cut cost, often staff, in order to keep going.

4. They may not be in a position to negotiate well.

Their suppliers are not going to be inclined to offer better rates or payment terms to them if they have a poor credit score. More likely they will apply a risk premium to the account, often insisting on payment in advance. This exacerbates the problem of thin margins.

5. They will be less forgiving, supportive and accommodating.

When an organisation is in trouble and operating off minimum margins, bid support suffers. Whilst they would love to help you win large tenders, they simply can’t afford to take the business on at lower margins. Cash flow is likely to be an issue and they will be more inclined to be heavy-handed with late payers. Good suppliers will be understanding if you suddenly encounter a cash flow issue yourselves, and need some time. Financial unstable suppliers cannot afford to, because a couple of late payers could push them into liquidation.

Of course, there may be legitimate reasons for a low credit score. For example, late accounts, and extraordinary write-offs, which will be corrected in due course. Don’t be afraid to ask your supplier. They may not even be aware, and the low score may be due to an error in the interpretation of their filed accounts.

On the positive side, suppliers with a high credit score and good growth may benefit your business, especially where their success depends on yours. It demonstrates they are doing something right with their products, pricing, processes and support. If a supplier is constantly innovating, and negotiating with their suppliers, this means differentiation for you, and lower prices.

Salespeople are like hotels in Monopoly. Buy as many as you can afford because the more you have, the more income you generate.

Of course, it’s never as straightforward as that. Under-performing salespeople are a drain on management time and your biggest mistakes won’t even pay for themselves, let alone make a positive contribution to gross margin.

This is why you need to be hiring all the time, especially if you are a growing business in a growing market. If you wait until the position comes up in the budget, or you lose someone, you are likely to miss the best people. Moreover, because you’re a little desperate, you are likely to compromise, take a risk, and make a bad hire.

Continuous recruitment requires a strategy. The objective is simple; whenever a person that fits your target profile starts to look around, they must know about, and consider, your company. Achieving this is a little more challenging.

1. Maintain an advert constantly – web-site, LinkedIn, Facebook, trade publications. Whatever you use to communicate with your industry. Make people aware that you are growing and always hiring the best people.
2. Write posts, blogs and articles regularly highlighting the successes of your salespeople and (if you’re in the channel) their resellers. You don’t have to use names, but you want to give prospective candidates a feel for what they will be doing, and a confidence that you will provide an environment in which they can succeed.
3. Operate a comprehensive, structured and strict recruitment process. This should have several stages, testing different aspects of the behaviours you desire. Include role plays, behavioural interviews and presentations. Understand the minimum requirement for progression at each stage. Do not truncate the process and do NOT compromise.
4. Make a list of companies where your ideal candidates currently work. Monitor this list for instability: new management, mergers, tough trading conditions. Try and develop contacts in some of these target companies who will let you know when people there may be looking around.
5. Use your existing salespeople. If they are happy and making money, they will be pleased to tell old colleagues with their previous employer and friends working in your target companies. Encourage this and offer an incentive for them to put people forward.

As a Director of a channel-only business, I am often asked why there are so few females in senior positions in our sector. It is a hot topic and something I have wondered about many times.

Some say the problem starts at school with fewer females being encouraged to study STEM (Science, Technology, Engineering and Mathematics) subjects. According to recent UCAS data provided by HESA, 35% of STEM students in higher education are women and only 15% are studying computer sciences.

Others say recruitment is a problem, that not enough females are applying for advertised roles in our sector. 2019 Workforce statistics state that there are now over one million women in STEM in the UK, however the proportion of tech roles filled by women has flatlined at 16% since 2009.

So, what is going wrong? Why are we attracting fewer women than other sectors? Is it our recruitment policies? Or is it something else entirely?

Is there a myth surrounding our industry that you have to be a techie to be involved in it? Or are other sectors more appealing to women?

Maybe we should also look at promoting the opportunities available in our sector to students, apprentices, graduates and professionals in other sectors? Could we do more to mentor and promote those we attract? By working closely with CEOs/MDs/CFOs/CTOs/CMOs could we develop a more diverse management team?

The channel is made up of technical and sales professionals growing their own businesses. Many developed their careers at large telcos, others have only ever worked for themselves.

Looking at the marital status of individuals running organisations across all sectors, many are married with families. The majority have someone at home they can rely on to support them.

Maybe we should be looking at work/life balance and shared responsibilities at home to achieve equality at work. Maybe this shift would help avoid burnout and improve decision making, resulting in more profitable businesses and happier home lives across all sectors?