Building a team for successful Start-Up Company

Aurelija Urbonavičiūtė06/11/2012

Agenda

• Market overview• What kind of people are right for you• How to get them on board• What’s next - maintaining

Getting started

• People• Idea • Plan• $$• Turn idea into product• Manage evolution

Getting started

• People• Idea • Plan• $$• Turn idea into product• Manage evolution

Labour Pool:

•1.6 million 50% concentrated in Vilnius capital city area66% employed in Services sector

Source 1: Statistics Lithuania Source 2: IMD, World Competitiveness Rankings, 2012 Source 3: Eurostat, 2011 Source 4: National Migration Department

Education:

•23 universities and 24 colleges

•43,000 graduates per year

•93% of population have secondary or higher education

•34% of population have college degree or higher

• 1st in the World Competitiveness Rankings in literacy2

• 1st in the share of female labor force in the World2

• 1st in the EU for completion of secondary or higher education3

• 4th in the EU for share of higher education institutions graduates of total population3

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Students at Universities and Colleges in Lithuania1 Number of Lithuanians Studying Abroad4

Most Educated Talent Pool in the EU

Foreign Language Knowledge:

•92% of population speaks at least one foreign language (the EU-27 average is 54%)

•52% of population speaks at least two foreign languages (the EU-27 average is 25%)

Availability of Multilingual Employees

Students Studying Foreign Languages2

• 5th in the EU for foreign language knowledge1

• 7th in the EU for ability to speak at least 2 foreign languages1

Source 1: European Commission, “Europeans and their Languages”, 2012 Source 2: Statistics Lithuania, Number of Students studying foreign languages in higher education institutions, 2011-2012

Languages Spoken:

•80% of population speaks Russian

•38% of population speaks English

•24% of population speaks Polish

•14% of population speaks German

•Over 20 different languages taught in 250 private language schools

•Increasing incomers’ flow from Portugal, Spain, Italy and France

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Cost-Effective Business Development Location

Average Monthly Gross Wages in EUR, 2011¹

Wages in the Shared Services Industry in 20113• Labour costs are more than four times lower than the EU average1

• Real gross wages increased only by 2.9% in 20112

• Slightly slower growth in real wages expected in 2012 (2.4%)2

• Employee turnover (international companies)3:

~2% in production

~8% in services

Source 1: Eurostat, “Labour costs in the EU27 in 2011”, April 2012Source 2: Ministry of Finance of the Republic of Lithuania, www.finmin.lt Source 3: Strategic Staffing Solutions International, www.strategicstaff.com

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Position in Shared Services Industry

Average monthly gross salary

(EUR)

Accountant clerk 670-1,050

Accountant 1,100-1,700

Chief accountant 1,500-2,600

Procurement specialist 1,100-1,700

Customer service specialist 530-980

HR specialist 1,100-1,900

IT team leader 850-1,450

Developer 1,150-2,250

Junior developer 750-1,350

Sales executive/specialist 980-1,750

Home to World Leaders in IT

• ICT sector accounts for 3.1% of GDP (BVP)

• 4,200 IT students at 8 universities and 8 colleges

• 1,500 IT graduates each year

• 22,000 employed IT professionals

• 980 IT enterprises

2nd biggest App store globally

3rd best-selling mobile application on the Mac App Store. Apple Design Award 2011

Mobile payment solution enables to make payments using a wide range of devices

MagicDraw UML – 1st Java based UML tool trusted by multinational businesses and NASA; distributed in more than 70 countries

No. 1 social network in Nigeria with 2.2 M+ registered users and 5 M+ registered users across the World, focusing on the mobile customers in emergent markets

1st commercial digital signature pilot for mobile in the World

9Source 1: Infobalt, 2011

SkillsetAprox number of specialists in Lithuania

Aprox number of specialists in Baltics

Mobile development: Android 150 250

Mobile development: iOS 100 200

Java development 1000 2500

Testing 800 2000

Business and system analysts 1000 2500

Source : Strategic Staffing solutions, Star Jobs, Project People

Availability of Skills in the market

Labour market in Lithuania

• 50% of IT companies are planning to increase IT headcount in 2013• 70% of IT companies finds it hard to find qualified specialists in the market• Technology centres making research• Big companies vs small

Start - upsBig IT companies

Social responsibility – investment in future talents

• Android & iOS labs in universities• Cisco academy• PMI chapter• Lectors at universities, Bachelor theses supervisors• Tendency: Lithuanian expatriates coming back• Knowledge sharing groups• Green houses

What kind of people are right for you?• Right person, wrong time • Smart, complementary skills• Domain expertise• Strategist vs. scrappy• Not everyone is right for the next stage• Personality or Culture Fit• Devoted• Meeting around the kitchen table • Industry is different than University life• Product development very different than research• How and where you can find such candidates• Profesional interview vs friend talk

Great employees• Courage to leave comfort zone• Attitude • Pro-activity• Doing more and better than required• Effective communication with others• Team and result orientation• Putting the work first, not the remuneration• Constantly learning:

- On the job (70 %)- From others (20%)- Formal education (10%)

Interview

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Questioning Technique

Get one specific example (context)

Who?Where?When?

Your Role?

What did you do?

How?

Why?

OutcomeOther views/Feedback

ComparisonsAny hard data

Learning

Situation

Task

Action

Results

Managing the team

Agile methodologies

Agile Scrum vs other methodologiesIndividuals and interactions over processes and toolsWorking software over comprehensive documentationCustomer collaboration over contract negotiationResponding to change over following a plan

Agile Scrum

Invest in Culture Early

• Values are easier to establish than change• Frugality, integrity, customer orientation, accountability, focus• Invest in “team” values: balance, support, communication, shared values,

collaborative, flexible job descriptions• Consistent values + clear priorities simplifies management• Think about cultural icons• Not just a CEO mindset, but a company mindset– Everyone must buy into the process– But in a calm way—not run for the hills

Manage the Company, Even When It is Small

• Good managers treat each employee according to their maturity and not their own management style

• Don’t assume everyone knows• Communicate goals and objectives

– Share successes and failures– Enroll people; Encourage debate

• Communicate often; clearly; think about it

Don’t Treat Board Like Them• Enroll them in your mission; engage them in reality• Arms length relationship leads to wariness• Communication is frequent and informal

Knowing What You are Good AtOr, Why “Founder” Becomes a Dirty Word

• Focus on your strengths• Focus outward--make everyone else successful• Fixated on first vision• Personal agenda—it’s not your company• Over-rating your own capabilities• Failure to delegate and micromanage• Statistically, you’re eventually the wrong person

Building Great Companies

• Business is a journey of unknown duration and course• Fundamentally strong business idea• More importantly, a talented team that has thought about and built what

it takes to win

Good luck at Appcamp!

Product Owner

The product owner decides what will be built and in which orderDefines the features of the product or desired outcomes of the projectChooses release date and contentEnsures profitability Prioritizes features/outcomes according to market valueAdjusts features/outcomes and priority as neededAccepts or rejects work resultsFacilitates scrum planning ceremony

Scrum master

The ScrumMaster is a facilitative team leader who ensures that the team adheres to its chosen process and removes blocking issues.Ensures that the team is fully functional and productiveEnables close cooperation across all roles and functionsRemoves barriersShields the team from external interferencesEnsures that the process is followed, including issuing invitations to daily scrums, sprint reviews, and sprint planningFacilitates the daily scrums

Scrum team

Is cross-functionalIs right-sized (the ideal size is seven -- plus/minus two -- members) Selects the sprint goal and specifies work resultsHas the right to do everything within the boundaries of the project guidelines to reach the sprint goalOrganizes itself and its work Demos work results to the product owner and any other interested parties.