The document discusses the importance of building a team (TEAM) for a business. It notes that innovation is not about money but people. The agenda discusses stages of team development, why a team is needed both internally and externally, necessary skills, how to find people, needing a leader, measuring objectives, compensation, and triggers for creating a new team like a key loss or major strategy shift. The document emphasizes that a team is needed to accomplish what one person cannot and is a criteria for funding. It defines a team as people coming together for a common purpose with mutual accountability.
My backgound, 35 years in IT business, stock trader, consulting Involved in Five start ups .. Mid 20’s as the sales guy, 15 yrs as co-founder up to 20Million, almost went public, merged, LeapFrog, Next level and IES This is a complex subject we could spend an hour per day for one semester to discuss this topic Sanjay and I started working on this in August same time as Steve announced his retirement Takeaway s ; leave here with at least three, if not talk to me afterwards so we can get it up to three
People you have, leaders ,how much you get it That’s’ what we’re talking about today
Questions : How many of you have your own business (owners/principles) Size of your organizations (# of people) 1-5, 5-10, 10-20,-20+ How long have you been in business , >10, 5-10, 3-5, 1-3,<1
Transcends the whole organization from upper levels to the employees Common purpose – outlined, clear objectives, measurable Accountable – one of the biggest issues in companies today, is it a feeling of negativity?, get into that later if we have time, under what skills Results … implies measurable, time line
Second financing – implies costs Moving from thought leader to business leader How many of you startup, how many phase 1, other
Steve had Tim Cook COO, operations genius, Jeff Williams, Cook’s new Coo, Scott Forstall – OS and Software Iphone Eddie Cue Internet Services ICloud Phillip Schiller Marketing Early years Wozniak as tech, Jobs as designer (way before his time, what does the customer experience )) Early years (1976) (incorporated in 1977) Ronald Wayne (left b4 Apple incorporated)- experience with dealing with people (Jobs was poor at this) and connections Believe it or not Bill Gates- $150 million when Jobs went back to Apple Pre revenue collaborative research Innovation chart human knowledge doubling every 5 years, moores law (doubling every 2 years) You tube, http://www.youtube.com/watch?v=xT1dFebXTro, CAC sales culture, and a family culture, engaging the spouses, 100% club CAC team of sales rep and tech rep, quite often customer reached out to tech You are managing a company of 85% intangible assets.e.g. when PG bought Gilette Analysts say 65% intangible assets CSF’s –e.g. teen retailer, mall presence teens hang out (social network digitally and human, brand) , right price point, changing trends, customer service/returns (online and in store), otherwise teens will use social media to ruin your brand
Outside team at the beginning, always communicate , don’t forget about them, if you lose interest, then they lose interest E>G. trusted advisors, insurance, legal from store front to full service e.g. Ronald Wayne with apple at very early stages
CSF’s – the TEAM that can get these done People with the CSF’s capabilities, define the responsibilities, accountability Know your team during tough times and good times, CAC example Surround yourself with people who have done it b4 Transparency, communication, commitment Has anyone fired anyone before Get the best you can afford People + passion +process = performance Who is the glue/cement Humility Blanchard … ego, servant leadership BALANCE … Short term successes, long term capability building Doers and Posers, Mike rudinsky example, new york VC, need hi levels mgmnt, want 30% of company Trust , (not fear) integrity, transparency, Fred Smith, Fed ex, Bill gates trust/committed/different set of skills Energy – need example Accountability – Question ?needs transparency lets discuss, one of the most important but managed poorly, negatively , creates fear Metrics: right ones, availble to all, transparent, real time, easily reported and understood (dashboard) John bernard’s Business at the speed of now
School of thought … hire people different than you different skills not different values! Bill Gates About Paul Allen and Steve Ballmer “ Bunch of smart people” Jeff Bezos (Amazon) Apple Tim Cook and Jeff Williams (new COO) both MBA from Duke, note iCloud center in NC Facebook … Mark Zuckerberg and fellow Harvard guys, in long run changes Google, Larry page and Sergey Brin brought in Eric Schmidt Bill and Wayne sales culture, CDC, sales training for 5 weeks, large account marketing Recruiters, Your List, board of advisors, networking, associations particular to your business, volunteer ,conferences Suppliers, customers, competitors Academia, Leaders you respect in or outside of your industry Right ones : otherwise you waste too much ENERGY and Time Fix it – you’re doing yourself, the other person and the company a big favor
Yes, it may not be you Can you communicate a vision?, do you have a network of business associates? Can you overcome obstacles in any aspect of the business ? Ego, Blanchard, servant leadership, humility, you want people better than you so LISTEN to them Its OK to make mistakes (in front of employees), ask for help Thought to business, where are you on the spectrum? Very few can do both… Jobs was an exception (but he struggled) Emotional and enduring energy to continue vision and passion, also galvanize energy of others (The TEAM) . Real leaders accept the job of recruiting, cultivating, and developing other leaders as priority one, observing team dynamics -7 habits of unsuccessful leaders -when the tough times happen, some tough decisions have to get made
Commercial as well as personal values, morale and productivity leads to high performing team Attitude Timelines, $ budgets, customer value, Communicating, decision making, timeliness Set the objectives correctly in the first place , a charter Metrics – the M in TEAM E.G.30% rev increase (easy, acct’g system can provide this), first few months 3% M/M on target to 30+%, few months later downhill why … didn’t measure new customer acquisition or customer churn
Ur not going to get a $100 K guy for $25k + equity, he has to live Equity to TEAM can dilute original investors… not a happy situation Kelleher Southwest airlines, people on front lines “make or break you” … feel like owners Question: is money the main reason stay ? No its # 3 or 4, respect, acknowledgement is #1 Promotions vs. title , title can be a big mistake if that person can’t make the decision eg. VP sales in front of customer Time off kids get sick, people get sick etc be compassionate Conference – Barth example Training: techs eat this stuff up Company Club – everyone and their spouses Company Friday lunches, lunch and learns Alignment with funders (external), equity, salary, tax issues, stock options ,commercial, personal values, awards, coveted company awards Deferred payment Money does not motivate everyone E.G. CAC equity: sales guys wanted it, tech guys on product bonuses, awards key, annual company club
All the time, work in progress, fire Bringing outside skills in house … need it day to day e.g. sales/marketing, operations To keep the energy, innovativeness, Fun of a startup Sometimes its not new people , it’s the same people growing, getting new skills, can’t change over 30 (CAC example) Major shift in industry : Richard Branson, Virgin records, Apple changed the music business with iTunes Steve Jobs changed the music ,computing, telephone, motion picture Succession TEAM wants to run their own company, TEAM hold your financial future in their hands , you want to stay as CTO, exit strategy
Just an illustration to remember constantly evolving
See notes
Two years (2009 to 2011) of research , over 100 companies through our introductory forums Focus on the arrow … this is the main attributes of a High performing TEAM Steve’s quote: people you have (PEOPLE) , how you’re led( PASSION) , and how much you get it (PROCESSES in place once you get it)
Simply stated : This is why you need a team: common purpose and who are mutually accountable for results.