Presentation I gave on April 29, 2010 to students in a management class at Dakota State University.

1. BADM 360
DataSync:
A Practical Example of a Challenging
Management Environment

2. First,
The Story of DataSync...
Vetter Solutions was
launched as a sole
proprietorship in May 2004
 Offered Home PC
support, business network
support
 Served 100+ residential,
25+ business customers
 Ran out of the Vetters’
basement

5. Vetter Solutions, Inc.
Vetter Solutions was
Incorporated in July 2005
 Moved into full office
in Madison, SD
 Added network
management, web
development, IT Security
services
 Burned through
substantial cash
learning, growing

6. The ‘Capital Gap’
Nearly ran out of cash in
late 2006...
 Banks: No, more
revenue needed
 Investors: No way
 Vetter Solutions:
Starving!
The experience just
about took me out! The result...
...my character was
tested!

8. The new idea: DataSync
Customers needed a backup solution to
protect their data...
 We Believed online services had potential
 Began hosting customer backups,
applications
 Created management team/strategy
 Due to large potential, Board of Advisors
created (Rich/SDTBC put together team)

9. What did it mean?
Maybe we could host
services/software, pass
the savings on!
 VERY scalable model
 BUT, required
substantial capital
 So, we went on the
investor road show

10. Capital: Giant Vision
We needed to raise
$500,000 to get the idea
off the ground.
 2006: Rejected
 2007: Semi-finalist
 2008: Semi-finalist
 No capital raised
 Began to fear ‘gapping
out’ again!

11. Series A Offering
End of year 2008:
DataSync closes Series A
offering
 Used services of SBDC,
Enterprise Institute,
RAIN network, GOED
 Pitched all over the
region
 Funding came in within
15 days of running out of
cash

12. Rights Offering
October 2009: DataSync closes additional
$1 million in funding
 Follow on RAIN investment
 Individual local ANGEL investors
 Adds integration with Quickbooks,
distribution channels

13. DataSync Today
Growing software
company with an innovate
product!
 16 employees
 1000’s of users around
the world
 25+ partners
 A chance at an exit!

15. Lessons Learned
 Strong character is foundational
 Management is a learned skill, with
some intuition required
 Be Strategic
 Never stop learning - find mentors
 A few principles of management

16. 1. Character is Foundational
 Who you are manages you
 Your personal life affects your
performance at work
 Traits that destroy managers:
Stubbornness, arrogance, laziness,
insecurity, lack of direction
 A sloppy lifestyle makes a sloppy
manager

17. 2. Management is a skill
 You won’t wake up one day and manage
effectively
 Goals are key
 Motivating people is key
 LEARN! Read Drucker, Collins, Porter
Be skeptical of ‘quick easy’ methods
Listen to your gut!

18. 3. Be Strategic
 Strategic: The Forest
 Tactical: The Tree
Look at the big picture!
 Day to day operations will pull you to
the smallest details
 Being effective requires that each
detail is looked at in light of the whole
 Pay attention to how you are making
decisions

19. 4. Always Learn
 Do not try to be ‘the smartest guy in the
room’, you’ll end up as Enron.
 You’re only as strong as you’re weakest
trait
 Get smart people around you
 Every situation requires new skill/
knowledge/wisdom
 One size DOES NOT fit all

20. Always Learn: Get input!
DataSync is the result of collaboration of many!
 Be ‘the dumbest guy
in the room’
 Implement their
advice
 Don’t give up
 Examples: Craig
Anderson, Al
Kurtenbach, John
Hemmingstad

21. 5. A Few Principles
(Dealing with your Team)
 Think, then act
 Your most precious asset is your time
 Reports (employees) are essential to
your success, don’t be an a**hole to them!
 Teams operate more efficiently than
tyrants

22. A Few Principles
(Upper Management)
 Opportunity costs are real: spend your
time on what matters, not a list of tasks
 Upper management (regardless of level)
judges your deliverables
 Concise communication with them is as
essential as your actual performance
 Set expectations, update them!

23. A Few Principles
(Making Decisions)
 Fully understand the problem, then act
 Make the best decision you can with the
information you have
 Gain the advice and insight of others
 Know the upside (potential benefit),
downside (risk), and ultimate profile of
your decision.
 Admit when you’re wrong, use the
experience as knowledge for the future

24. Am I ‘successful’?
Success IS NOT
 Making more money
 Being the ‘head haunch’
 Beating other managers/employees
Success IS
 Defining and delivering goals
 Building a team that outlasts you
 Accomplishing the organization’s goals
 Finding satisfaction in working hard at
challenging, ethical, long term focused
efforts
 Doing something that is truly
worthwhile

25. Conclusion
 Delivering effective management is one
of the most difficult jobs in business
 Effective management is the most
valuable job in business
 Becoming an effective manager is a
lifetime endeavor
 Management is the most difficult, but
most rewarding journey I have attempted
in business

26. And remember, balance is
IMPORTANT!

27. Mike Vetter
CEO - DataSync
mvetter@datasyncorp.com
twitter.com/intheexpanse
InTheExpanse.com