General Management of High Tech Companies

General Management of High Technology Companies

The basic concepts (1/3)
Managing is to :
Plan
Organize
Lead
Motivate
Control

The skills required are :
Conceptual
Human
Technical
- Robert L. Katz, HBR Managers Directors CEO, VP,
General Manager

This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010


Managing is to :
Plan : to identify goals, objectives, methods, resources needed to
carry out the operations of the company.

Organize : to use the company’s resources to achieve the corporate
goals in an optimum fashion.

Lead : to set a direction for the organization and influence people
to follow that direction.

Control : to monitor and adjust the company’s resources and
processes in order to efficiently reach corporate objectives.

Motivate: to give an incentive for action.



The skills required are :
Technical skill: involves specialized knowledge and analytical ability within a
specialty, and a facility in the use of the tools and techniques of
a specific discipline. Usually comes from actual practice and
experience.

Human skill: is the ability to work as a group member (intergroup
relationship) and to build cooperative effort within the team he
leads (leadership). By accepting the existence of viewpoints,
perceptions, and beliefs which are different from his own, the
individual is skilled in understanding what others really mean by
their words and behavior.

Conceptual skill: involves the ability to see the enterprise as a whole, it includes
recognizing how the various functions of the organization
depend on one another, and how changes in one part affect all
the others. It extends to visualizing the relationship of the
business to the industry, community, and the political, social,
and economic forces.


Leadership (1/4)
Leadership is as much about providing a vision and a
direction as it is building a consensus around that
direction.
People usually do not respond well to dictatorship.

There is only one way to do things so get
in line an follow my lead !
Do not take decisions without reviewing
with me first !
the threat of micro-management
processes for processes without a
real-added value



Leadership (2/4)
As the leader, you do not always have to lead.
You can not lead everything and must “learn to delegate” and let other
people lead Find people you trust… and trust them !
People must know where the company is going and you have to use their
skills to get the company there Empowerment is key…

So, what else ?

g{x ÑÜ|Çv|ÑÄx Éy Äxtäxá


Leadership (3/4) g{x ÑÜ|Çv|ÑÄx Éy Äxtäxá
The principle of leaves
You can lead your team like you would blow leaves in a tunnel.

Blowing

The PEOPLE in your team are the leaves.
The OBJECTIVES for your company are at the end of the tunnel.
Your VISION is the tunnel. It defines the boundaries (business plan) in which your team must operate.
The strength of the blow is how good you are to push (LEAD) your team to succeed.
The leaves (people) will not follow “ONE STRAIGHT LINE” but if you have good boundaries (business
plan), they will find their way to the objectives within your boundaries (VISION) and at the speed at
which you can blow (LEAD).



Leadership (4/4) g{x ÑÜ|Çv|ÑÄx Éy Äxtäxá
The principle of leaves
What ?
Find your TEAM.
Define OBJECTIVES based on your VISION.
Identify resources needed to achieve these OBJECTIVES.

How ?
Give your TEAM the level of authority to succeed, trust them and let
them find their own way. They will follow their own path but within the
limit you imposed with your processes and their level of authority.
Frequently, check if they are still in the tunnel (business plan) and
make adjustments when required.
When they succeed, make sure it is recognized.
Say what you mean and mean what you say !
Be bold, be passionate !



Business Strategy
Defining a business strategy based on a solid product
innovation strategy is key for the performance of high
technology companies.
The stage-gating model is a good starting point.

Discovery

1

Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation

Post Launch
Review



Capturing Opportunities
Targeting programs after programs as a strategy is not an
effective way to manage the performance of a company
A program-to-program approach is a “flavor of the month strategy”
On the long run, it will create cynicism within your team.
Too many programs will disperse your efforts and the success ratio
will be lower Focus your efforts !



Customers
Customers are key in all that the company does.
Give them the product / services they need.
Use them to understand where your market is going.
Use your customers in your product innovation activities.
Support them efficiently when they have problems. Be proactive.
Customer intimacy will get you very far.



Key Performance Indicators (KPI)
You should measure your results on :
Market Performance (Penetration, Market Share)
Financial Performance (Profitability, Financial Position)
Organization Health
Social Responsibility

Remember to set quantifiable
objectives for your KPI.



Market Performance
Profitability
Gross & Operations Margins (EBIT, EBITDA)
ROA, ROE, ROS
STOCK PRICE (if applicable)

Financial Position
Leverage Ratios (EBIT/Equity, Interest Coverage)
Liquidity Ratios (Current & Quick)
Activity Ratios (Assets & Inventory Turnover)



Financial Performance
Absolute & Rate of Sales Growth
Market Share (# unit, Revenue)
New products as a % of sales & profits

Follow the short term results
Plan for the long term objectives
Act for both



Organization Health
Make sure you know how mobilized is your team
Too often neglected

No, it will not take care of itself.
It will impact your financial results.
Measures of improvement will take time to give results.
What is the culture of your company ?
Collaborative & Flexible
or
Highly Political & Cover-your-Ass



Social Responsibilities
Your company has responsibilities toward all stakeholders
including:
Your customers
Your suppliers
Your employees
Your shareholders
The societies in which you are present



Your team
What do they expect from you ?
A vision
A direction and a pace
Clear objectives
Your trust
To define what is allowed
To identify priorities
To have what they need to do their job
To have a pleasant working
environment
To be proud of working for your
company



Yourself
It’s lonely at the top
Get your value straightened
Your first 90 days are crucial
It takes time to know if you are effective
Walk the talk
Try to stay available but do set a distance (they are your team, not your friends)
Get out of your office and fell your company
Be careful not to play favorites
Some people will not like you
Do not forget your personal life
Use your common sense


General Management of High Tech Companies

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