Module 3 Leading and building your entrepreneurial teamWhere 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 moduleCreate conversations around hardy perennialsMotivations personal and teamsCompetencesTeam roles and behavioursHuman andSocial capital
Team and BusinessPerformanceFeedback loopsAlteringbehavioursAlteringPeopleEffects of Team on PerformanceS.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
Core competences for entrepreneurial teams
TristartPropriety software designed to:Provide a single score Sensitivity analysisReflective S+W aptitudesUnderlying testsPrincipal componentsNon-parametric comparisons in some cases477 responses used initially to build the algorithm over 3 cyclesOriginal questions based on academic sources refined with experienceHigh focus on making it quick and easy to complete.
Component scoresHow 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
The role of leadersKnow their goals - clear ambitionsCreate a shared visionBuild and manage relationshipsThink all the time - not just once a yearThey manage and direct - i.e. provide leadershipDecision makers following good discussion
Winning teamsHave robust discussionsConsult widely take in viewsDemocracy but once decision is made they prefer actionSpeak with unified voiceHave preference for action
Senior Team and the roles
Team changesStartupRisk takersTechie functional specialistsSmall, informal groupProductionRisk adverse (mostly)Marketing and SalesFormalisedProductionCRMSales force
NetworkingTeams do not exist in a vacuumDepend on help, co-operation with other teams to achieve objectivesPitfalls if they dont networkInter-group hostilityInsularity and inward thinkingNot Invented Here factorNeed to find networks that are nutrient rich
What have I done when I did:WellClear about objectives and the visionMake decisions quicklyEmpower my team to make decisionsGet buy-in to decisionsShow energy and passion every dayGive everyone the chance to do well to succeedMake people accountable by trusting them set some ground rulesIf I make a mistake own up straight awayBe a good role modelBuy chocolates from time to timeMake jokes (even bad ones)Never ever cross the line e.g. innuendosComplete transparency about my diary frequent report back of my activitiesFight for my staff in wider meetingsBeing on time for meetings or letting them know if I am going to be lateIntroduce them to my contacts treat them as equalsBadlySat on the fence with decisionsDid not keep my team informedDid not show 100% loyalty to my team memberShowed my irritationSent email replies fanned the flame of some disagreementDid not use standard procedures for appraisals, feedback, reviewsHired hastilyFired slowlyDid not tune into the emotional content of the problemTotal + and - = On the whole how have you done?
What tools are available to you..?Motivation theoriesHuman and Social capitalRole clarityTransparency of process
*PowerSeeking positions of control and influenceAffiliationNeeding pleasant relationships and enjoy helping othersAchievementNeeding success, fear failure, task orientated and self reliantNot mutually exclusive many motivated by all threePay and rewardsWorking conditionsSecurityManagement styles
All require constant attention and potentially negativeSelf actualisation:Esteem:Affiliation:Security/safety:Physiological:
Individual ResourcesHuman Capital
Experience of your sectorOther work experienceTeam skills and experienceSocial Capital
Networks who we knowSocially, business, communityEasy to under estimate valueThis has become a major under pinning way forward for:Open Innovation (Proctor and Gamble and others..)Open source software developmentWriting booksTravel 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 VCs 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 doesnt 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 BWe 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 CI 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 DirectorsWear 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 grantedCheck 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 InformationProposal PaperDiscussion and LobbyingReview Continue / modify / withdrawIn Board MeetingFinal ClarificationCheck Resources, Cost, Risk, ImpactDecision, Feedback Reporting TimetableNotes 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)BudgetsResultsNew Products and TechnologyNew BuildingsCompetitionMarketing plansWhen 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???