One of our previous posts highlighted how Jonas is a different type of acquirer of software companies. We like to talk about our ABCs in terms of how we are unique:
- Buy & Hold Forever
- Culture of Sharing Best Practices
This article will be doing a deep dive into the third pillar of our ABCs: Culture of Sharing Best Practices.
What type of best practices are we talking about?
As owners of over 100 niche software companies around the world, we have a strong track record of managing and operating our businesses. Many of our software companies encounter similar problems and opportunities. Although the customer bases might be different (private golf clubs, manufacturing plants, wineries, schools, etc), the challenges and questions that come up are often the same. For example:
- How should I think about development spend? Am I over-investing or under-investing in development?
- How should I build a commission plan for my sales team?
- What metrics should be measured and what hourly rate should I be charging for the installation/training team?
- What systems are other companies using to track customer support calls? How should I analyze my customer support data?
The list goes on and on…
As a data driven organization, we are diligent on tracking metrics and benchmarking. Mark Leonard, the CEO and Founder of our parent company, Constellation Software, discussed this idea in a past shareholder letter:
“As we teach more people at CSI how to deploy capital, we lean on the accumulated data from our historical acquisitions to help maintain investment discipline. We have base rates for a variety of key operating metrics. Whether it is a neophyte investment champion arguing that a particular acquisition is ‘special’, or a senior executive being tempted by a large acquisition, we have enough data to make the discussion rational, not emotional. We all know whether the key assumptions are being pushed to the 55th or 95th percentiles of our historical distributions.”
How do we share our best practices across Jonas?
Prior to the COVID-19 pandemic, we held multiple in person events each year where we brought together Jonas employees from our 100s of businesses across the globe to learn from one another and share best practices. Here is a picture from one of our events in late 2019:
It’s hard to believe the above picture is just over a year old! Recently, this is what our events have looked like:
In addition to the formal events, there are countless emails sent around on a regular basis asking if other businesses have encountered certain situations. “You should talk to X person at Y company” is a sentence that comes up a lot at Jonas!
What do the people who have sold their business to Jonas have to say on the Culture of Sharing Best Practices?
“Jonas is a company with vast expertise and knowledge… One of the main benefits of Jonas ownership is their play book on how to run and grow a successful software business and they’ve certainly brought that to our company.”Matt Gatter – former Managing Director, MCR Systems
“Longer-term, [the Jonas acquisition] opened up more career opportunities for me. The learning gained via Jonas best practice sharing events (like Jonas Software Academies & Jonas Software Universities) plus the support and resources available meant that when the time came I was able to move from a historically technical role into the much more business-focused role of CEO. For me, being able to learn, grow and get new experiences was great.”Al Quinn – Co-Founder and former CEO, Kitomba
Are you interested in learning more about joining the Jonas family? Get in touch with us for more information.