module 3 – leading and building your entrepreneurial team ‘where is the space for big thoughts...
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Module 3 – Leading and building your entrepreneurial team
‘Where is the space for big thoughts when the mind is cluttered with little thoughts?’
Shai Vyakarnam and Simon Pratten
Breakout is an Epi-V initiative, delivered by Transitions.
This module• Create conversations around hardy perennials…
• Motivations personal and teams
• Competences
• Team roles and behaviours
• Human and
• Social capital
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Newcomers
Strategies
As the business develops
Strategies
Leading to Outcomes
Skills and knowledge
Prior industry experiencePrior work experienceTeam skills
Who you know
Prior joint work experienceWorked in teams beforeNetworksSocial background
Day to day behaviours
Ability to fit inCommunication styleCommunication frequencyCommunication informality
Personal Task Leadership
Personal integration into the taskCommitment to taskDegree of personal integration
Group behaviours
Shared clarity of tasksShared understanding of goals
Team and BusinessPerformance
Feedback loops
Alteringbehaviours
AlteringPeople
Effects of Team on Performance
S.Vyakarnam and J Handelberg, Four themes of the impact of management teams on Organisational performance: Implications for future research on entrepreneurial teams: International Small Business Journal Vol23(3) June 2005
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PersonalSkill
Self Awareness
Financialknowledge
Travel & sales
expertise
Marketing expertise
SharedVision, values
& beliefs
Building andManaging
Relationships
Eligibility
Suitability Core competences for entrepreneurial teams
Tristart• Propriety software designed to:
• Provide a single score
• Sensitivity analysis
• Reflective S+W aptitudes
• Underlying tests
• Principal components
• Non-parametric comparisons in some cases
• 477 responses used initially to build the algorithm – over 3 cycles
• Original questions based on academic sources – refined with experience
• High focus on making it “quick and easy” to complete.
Single score
Sensitivity analysis
Component scores• How do we address these gaps within the team?
• Build a team, allocate specific tasks to someone who is better at it..
• Recruit experience
19 Predictive dimensionsOil & Gas services entrepreneurs
PositivePositive
Needs attentionNeeds attention
Danger areaDanger area
The role of leaders
• Know their goals - clear ambitions
• Create a shared vision
• Build and manage relationships
• Think all the time - not just once a year
• They manage and direct - i.e. provide leadership
• Decision makers – following good discussion
Winning teams
• Have robust discussions
• Consult widely – take in views
• Democracy – but once decision is made they prefer action
• Speak with unified voice
• Have preference for action
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Senior Team and the rolesSenior Team and the roles
US UK
Chair Chair Senior figure; Old wise head
Experience and contacts; Major dispute resolution; part-time
CEO Managing Director
Finding money; Investor relations; Style setting; Keeping the peace
CFO Finance Director
Accounts etc. Office management; Administration, Legals, Quality control
CTO Technical Director
Inventing new things; development
COO Production Director
Running the factory and distribution
VP Marketing
Marketing Director
Deciding what and how to sell; pricing Marcoms; Market information
VP Sales Sales Director
Selling; CRM;
Team changesTeam changes• Startup
• Risk takers
• Techie functional specialists
• Small, informal group
• Production
• Risk adverse (mostly)
• Marketing and Sales
• Formalised
• Production
• CRM
• Sales force
NetworkingNetworking
• Teams do not exist in a vacuum
• Depend on help, co-operation with other teams to achieve objectives
• Pitfalls if they don’t network
• Inter-group hostility
• Insularity and inward thinking
• Not Invented Here factor
Need to find networks that are “nutrient rich”
What have I done when I did:• Well
• Clear about objectives and the vision
• Make decisions quickly
• Empower my team to make decisions
• Get buy-in to decisions
• Show energy and passion every day
• Give everyone the chance to do well to succeed
• Make people accountable by trusting them – set some ground rules
• If I make a mistake own up straight away
• Be a good role model
• Buy chocolates from time to time
• Make jokes (even bad ones)
• Never ever cross the line – e.g. innuendos
• Complete transparency about my diary – frequent report back of my activities
• Fight for my staff in wider meetings
• Being on time for meetings or letting them know if I am going to be late
• Introduce them to my contacts – treat them as equals
• Badly
• Sat on the fence with decisions
• Did not keep my team informed
• Did not show 100% loyalty to my team member
• Showed my irritation
• Sent email replies – fanned the flame of some disagreement
• Did not use standard procedures for appraisals, feedback, reviews
• Hired hastily
• Fired slowly
• Did not tune into the “emotional” content of the problem
Total + and - = On the whole how have you done?
What tools are available to you..?
• Motivation theories
• Human and
• Social capital
• Role clarity
• Transparency of process
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PowerSeeking positions of control and influence
AffiliationNeeding pleasant relationships and enjoy helping others
AchievementNeeding success, fear failure, task orientated and self reliant
Not mutually exclusive – many motivated by all three
Pay and rewardsWorking conditionsSecurityManagement styles
All require constant attention and potentially ‘negative’
Self actualisation:Esteem:Affiliation:Security/safety:Physiological:
Individual Resources
Human Capital
Experience of your sectorOther work experienceTeam skills and experience
Social Capital
Networks – who we knowSocially, business, communityEasy to under estimate value
This has become a major under pinning way forward for:Open Innovation (Proctor and Gamble and others..)
Open source software developmentWriting books
Travel sites (ratings)(Consumers ask on facebook)
Growth of Silicon Valley, Cambridge and other places
Quote - Company A
“ I used to dread Board Meetings – The Chairman was from one of our VC’s and just hounded us because we were not quite on plan. (– but who is?)
Then he left the VC, and we got an outsider in – he doesn’t actually seem to do anything – but listen and make some useful points – but things are much better.
The MD is now a lot more confident in himself, and Board Meetings really work.”
Finance Director.
The Entrepreneurial Director
Quote - Company B
“We have 3 Independent Directors – and I often felt they just sat there making smart remarks and taking their fees – but the MD said they were useful.
Then we had a crisis with one of our major distributors, and nearly went to the wall. We found these old crows were really wise owls. They calmed our panic, talked us through, helped us find a way forward with a rescue plan – and then the Chairman was absolutely invaluable at persuading our VC to fund it”
Sales Director.
Quote – Company C
“I had a row with the Research Director and nearly fired him on the spot. Luckily
I was due to have lunch that day with the Chairman – so I talked it over with her, and realised I was being far too hasty. As I felt at least a warning was needed, she suggested an immediate session with our solicitors on HR issues.
That was an eye opener!”
Managing Director.
What framework do you need to energise the board?
• The Board is concerned with:
– Strategy
– Performance
– Risk
– People
What is special about executive directors?• Executive Directors
• Wear 2 hats, but should leave the executive hat at the door.
• As a Director, they are responsible to the Shareholders for The Whole Enterprise.
• Their board decisions must be based on this responsibility.
• As an Executive they are responsible to the MD for carrying out their specific duties.
What do the Directors need to remember?• All Directors can face personal criminal charges if the company
breaks the law.
• All Directors should maintain scrutiny of the company:
• Do not take anything for granted
• Check adequate controls and systems are in place.
•Ask:
• Who / What / Where / When / Why / How.
What are usual board procedures?
• Proposals to the Board should present one choice - to be accepted, referred back or rejected.
• Multiple choices are wrong (but the options should be set out in the proposal paper and reasons given for the choice)
• The MD should clearly state “this is the preferred option of the executive team”.
• Once accepted, this forms the basis for executive action and accountability.
• Its not just the decision – but the follow through that leads to success.
How does a board resolution progress?•Background Information
•Proposal Paper
•Discussion and Lobbying
•Review – Continue / modify / withdraw
•In Board Meeting
• Final Clarification
• Check – Resources, Cost, Risk, Impact
• Decision, Feedback – Reporting Timetable
• Notes of Concern and Dissent
What are pre-board presentations used for?
• Very useful for in-depth coverage of Resolutions and Other Information which could otherwise swamp a Board Meeting. (Decisions are taken later at Board)
• Budgets
• Results
• New Products and Technology
• New Buildings
• Competition
• Marketing plans
• When these involve presentations by other staff, then NEDs have an opportunity to see the calibre of the staff in action, and question them directly.
What needs to be included in the board agenda?
• Among all the usual items it is prudent to include at every meeting:
• Legal Matters
• Are any of you aware of any Legal, Patent or Employment actions involving the company. Either active or contemplated - by the company or against the company???