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| Directo: DIrect Hit |
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| Written by Eric Slack | ||
| Tuesday, 30 September 2008 19:00 | ||
 “We try to understand the patterns and needs of the customers we serve around the globe, so we do a lot of listening and don’t prejudge, said David Jassan, president. “We keep our investment spending as low as possible, but we make sure our network is always functioning at its highest capacity.”As a company, Directo got its start in 1998 when Jassan learned of an opportunity to resell long distance calls wholesale. At the time, the company was known as Computertel, a name that sprang from the concept of changing a phone call to data via computer. After two years, the company converted everything to VoIP using Cisco equipment. But as the company grew to establish a global presence, the Computertel name no longer accurately reflected its services. “The concept is to allow people to communicate as directly as possible from the person calling to the person answering,” Jassan said. “We transfer the call over the Internet, but we try to control the call from where it starts to where it ends. That is where the Directo name came from.” The company’s office is in Mexico City, with a satellite office in Miami. There are 50 people in a call center in the Philippines, and individual representatives work out of their homes all over the world in places like California, Brazil, Columbia, Peru, and Israel. Directo’s customers are also spread across the globe so cultural differences need to be addressed. The company adjusts to the cultural environments it enters, partnering locally to understand the hearts and minds of the people it deals with. Jassan said a global mentality is critical to blend in and execute. Extensive leadership travel and video conferencing is also important. One of the keys to Directo’s success is keeping its fixed costs low so it can be a stronger global competitor. This is why the main office in Mexico isn’t in an office building setting. Instead it is in a nice neighborhood in a house converted into an office. The Miami office is small, with two people video conferenced in to regular meetings. Miami also provides direct flights to Mexico and Latin America, helping control travel costs. The company’s biggest fixed expenses are spent on ensuring its switching facilities are reliable. Located in Miami, New York, and Los Angeles, large amounts of resources are allocated to 24/7 operation, providing power and a perfect Internet connection. Strength for the future The playing field has changed since Directo was launched. Where there once were countless players, inefficiency led to many closing shop or being swallowed by competitors. Directo survived by choosing the right management and technology and controlling spending. But because of heavy consolidation, there are several giants in the industry. To continue its growth long term, it needs to find the same access to capital that many of the large corporations in the industry are afforded. By moving quickly to react to technological advancements, Directo’s current technology should serve it well for at least five years. Provided by healthy reserves from wise saving and controlled spending, the company feels it can find funding when it’s needed for now. Directo manages HR requirements by splitting the company into administrative, commercial, and operational silos. At the administrative level, the company brought in experienced leaders and made them partners. Jassan said this helps create harmony amongst leadership, which helps achieve company goals. In the commercial arena, people are compensated on a variable basis. They get a percentage profit for the business they generate in addition to a base salary, so the company seeks those with an entrepreneurial mentality. As for operations, Directo invested in the personnel and tools needed to improve efficiency. The head of operations, who works out of Tel Aviv, organizes the books with what Jassan described as military precision. The company also invested in SAP software to improve accounting. But the main office in Mexico provides the setting the company uses to maintain the corporate ethics Jassan believes keeps people in the organization. Its homey qualities include a garden, a kitchen and a cook, and Wednesday Salsa classes. Also, when a female executive recently had a child, the company built a nursery next to her office complete with a nanny. “We think of productivity but with a human touch,” Jassan said. Until now, Directo has grown quite well on its own. But it’s entering a more complex period alongside larger and larger competitors, so seeking outside partnerships or venture capital funding may be a critical next step. Jassan said Directo is about a year away from making a major decision about potentially pursuing such a course. But one thing he is sure of is that should Directo decide to chase a bigger piece of the market, it is possible as long as leadership remains focused and together. “We could fail by not being ambitious enough, so management synchronization will be important. But if you have that, everything will come. Money will be there if we need it; we know how to expand to other parts of the world if we choose,” Jassan said. “I named Directo’s holding company Vision Communication because you need to communicate your vision and have it communicated back to you to have a unified vision in order to make the next steps.” |