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© 2016 Karthik Ethirajan, all rights reserved
Organizational Insights Karthik Ethirajan July 2014
© 2016 Karthik Ethirajan, all rights reserved 2
Agenda
1. GM/Opex Analysis
2. Org Structure
3. Business Processes
4. Strategy & BD Team Charter
5. Culture
© 2016 Karthik Ethirajan, all rights reserved 3
Using GM/Opex metric to analyze current state of business
Non-Products Num. of
Resources Functional Mix
G&A
Executives
Admins
Finance
IT
Marketing
Sales
Operations
38
10
3
4
1
6
5
9
4 VP, 6 Directors
3 Admins
1 Controller, 3 Managers
1 Engineer
3 Managers, 3 Analysts
5 Managers
2 Managers, 7 Analysts
Others
Accelerator
DMP
Privacy
36
4
29
3
4 BD
1 Director, 8 PM, 20 Engineers
3 PM
Total 74
Methodology
• Annual revenue forecast is December 2014
forecast x 12
• Number of resources are estimates made from
org chart
• Roles are abstracted into fewer titles
• Opex only includes headcount labor spend. An
average of $152K/person is used except for VPs
• Projects with GM/Opex in green are over
performing, and those in red are under performing
compared to overall GM/Opex
GM/Opex Analysis
Vet revenue potential rather than
resource allocation for new
business initiatives
Market
Potential ?
Over
Staffed ? Cash Cow
Jackpot! New
Business
Mature
Business
Optimize resource utilized by
mature business
GM/Opex in Red GM/Opex in Green
© 2016 Karthik Ethirajan, all rights reserved 4
A view of a high performance org structure
Executive Oversight
Strategy & BD
DMP
Marketing Communications
Non-M
edia
ted
PM
Ow
ned A
pps
PM
Opera
ted A
pps
PM
Com
merc
e
PM
Dev
• B2B & B2C Brand
Marketing • PR / Events
• Marketing collateral
• B2B Sales
• Sales Operations • Sales Channel
Strategy
• New Opportunity
Evaluation
• Incubator
(<$1M revenue)
Dev Dev Dev
• 1 Director
• 4 Managers
• 1 Manager
• 1 Analyst
• CEO & CFO
• 2 VPs
• 1 Director
• 4 Managers
• 2 Analysts
• 2 Directors
• 2 Analysts
Busin
ess T
eam
• P&L
• Business Case
• Strategic
Partnerships
• Product Management
• Product Roadmap
Analy
tics
PM
Dev
Campaign Operations
Sales
• 1 Director
• 2 Managers
• 4 Analysts
• 1 Director
• 2 Managers
• 10 Developers
• Vision, Overall
Strategy & Execution • SLT Communication
• P&L
• Campaign
Onboarding • Yield Optimization
• Reporting
• Platform
Architecture • Vendor Management
• Implementation
Pro
du
ct Te
am
Roles Responsibilities Resources*
• For <$100M revenue
• Arrows compare current assignments
• 1 Director
• 6 Managers
• 30 Developers
• Product
Development • Product Releases
• Agile Process
© 2016 Karthik Ethirajan, all rights reserved 5
Processes key to successful business execution
EVAL INCUBATE GROWTH MATURE
Project
Scale &
Scope
Project
Lifecycle
$0 Rev
$1M Rev
MAX Rev
4-8 Weeks 12-18 Months 2-3 Years 5-10 Years
Strategy BD PM PM
Beta
Gate
Commercial
Gate
Sustenance
Gate
Length of
Time
Led by
Phase Gate Approval Process
• Project plan
• Transition plan
• Add/remove resources
• Set Go/No Go criteria
• Partnership status
• CAPEX requirements
(e.g., new hardware,
software licenses, etc.)
• Product performance
• Market readiness
Product
Phase
Gates
Monthly Ops Review Process
Conduct all day session
Standardize dashboards & metrics
to be tracked
Let the product owners (PM & BD)
present
Review each function:
o Overall financials
o Sales funnel
o Campaign ops
o New business development
o Current products
o Platform status Other
Processes
New opportunity evaluation, product development reviews,
partner diligence, etc. are conducted at the functional group
level
© 2016 Karthik Ethirajan, all rights reserved 6
1
• Market research & assess fit
• First partner touch point
• 1-2 weeks
Preliminary Assessment
• Understand value prop
• Business term agreement
• 1-2 weeks
Business Diligence
• Explore legal & privacy
• Technology deep dive
• Platform integration
assessment
• 2-3 months
Technical Diligence
Invitee List for Partner Week
3
2
Qualified Partner Offers
Business Model
Partner Integration
Plan
~ 10 partners
~ 7 partners
~ 2 partners
Partner Rap Sheet
Execute NDA
Execute Contract
Strategy & Business Development team charter
External Perspective
(Do Market Research)
TAM / Growth
Competitors
Customer unmet needs
Value chain
Best practices
Products & Features
Technology
Internal Perspective
(Assess Strategic Fit)
Synergy / Cannibalization
Platform capabilities
Value proposition
NRE / CAPEX requirements
Roadmap fit / Adjacency
Scale & scope
Resource impact
Business Plan
Revenue forecast
Pricing
Product
Roadmap
Development
Project Plan
Budget
Resources
Partnerships
Due diligence
Contract
Marketing
Positioning
Launch plan
Collateral
Partner Due Diligence Incubator New Opportunity Evaluation
© 2016 Karthik Ethirajan, all rights reserved 7
Key elements of a winning culture
Ownership & accountability go together
Push product ownership to PM and BD managers
Let PMs own P&L Cultivate high degree of individual
responsibility
Rigorous hiring process
In general, favor talent-based hiring to skill-based hiring
With talent and sufficient motivation, new skills can be quickly learnt
Incentivize employees appropriately
Tie bonuses to individual performance
Make promotions highly visible & set expectations on how to move to the next level
Matrix management
Developers will work on project teams and report to the project lead, and not to their line manager
Fair performance appraisals
Collect self-appraisals, feedback from project leads and assign ratings
Conduct two reviews per year
Own your task
Set the bar high for professional delivery at ops review and phase gate reviews
Remember the context at customer meetings
Learn & document
Know your product & the business
Create and maintain documents that are clear, concise and up to date
Master information management
Be able to manage basic productivity tools such as emails & calendar
Read emails
Learn to do advanced searches
Be professional
Respond to colleagues, be it via email, calls, IM, or others
Be on time to meetings
Be on top of administrative tasks such as expense reports, status emails, acknowledging compliance policies, etc.
Organizational Focus Individual Focus
