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Archive for the ‘Management’ Category

5 Habits of Great Startup CEOs by Scott Johnson – Partner New Atlantic Ventures

Posted in Business Strategy, Entrepreneurship, Management, New Atlantic Ventures, Scott Johnson, Uncategorized, Venture Capital, tagged , , , , on May 2, 2013| Leave a Comment »

April 5 2013
by Scott Johnson

5 Habits of Great Startup CEOs

Being CEO of a startup is quite similar to being the parent of a newborn.  The neighbors see a clean cooing newborn with smiling proud parents.  But we all know what goes on inside the house.  Sleepless nights, stress, no time to attend to other relationships.  You are a slave to the new creature.  It is ultimately incredibly rewarding, but parenting is very hard work and not at all glamourous.  And just the way not everyone handles parenting well, not everyone is a good candidate to run a startup.  As a matter of fact, a great startup CEO is as rare as a 70 degree day in March in Boston.

I have compiled the qualities that great startup CEOs share – you know – the CEOs that actually get multiple B-round term sheets in down markets and get that marquis exit at an unusually high multiple.  These are the ones that consistently surprise their board on the upside, investors love to back, and that acquirers pay up to bring in-house.  If you are a founder looking for a CEO to really grow your company, here are the five personal attributes you should look for:

1) Attracts Great Talent.  This is the best indicator of success, as it really encompasses all of the other attributes.  If A+ talent flocks to work for someone, that person has got something special.  Be careful though.  An orangutan could be CEO of super fast growing startup and attract great talent.  So, make sure it is the CEO who can attract talent, not someone riding the wave at a hot company.

2) Networking God.  A good CEO shortens sales cycles with contacts, shortens hiring time with contacts, and shortens fundraising time with contacts.  A CEO who networks well can hence shorten time to exit and massively reduce dilution to founders.  Give 8% to a great CEO, prevent 20-30% or more in downstream dilution.

3) High Intelligence.  The CEO is usually not the highest IQ in the room.  But he needs to be in the conversation.  At high tech startups, a certain acumen is needed to keep the respect of the troops, and gain the respect of customers and investors.

4) Strategic Thinker.  The trick with startups is to channel all of the companies limited resources in the optimal direction.  And to quickly alter course as markets dictate so not a single moment is wasted by indecision.  This requires strategic thinking, not tactical execution.  Many line executives from larger companies struggle as CEOs of startups because they  have not had the opportunity to deviate from a strategy that was handed down to them from above.

5) Stamina, Energy and Productivity.  This gets back to my point at the top about parenting a newborn.  The CEO needs to be all-in, and one of those productive people that doesn’t waste a second of his or her day.  The CEO sets the culture at a company, and that should be one of reward for achievement, productivity, hard work, and accountability.

So, there you go.  Every founder CEO should be very honest in his or her self assessment, and then when they see someone with the above profile, move quickly to hire them.  But do your diligence.  Hiring the wrong CEO can be every bit as costly as hiring the right one can be helpful.

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With Great Startups It’s All About The Execution by Martin Zwilling Forbes Contributing Editor

Posted in Forbes, Management, Martin Zilling, Startups, Uncategorized, tagged , , , on March 19, 2013| Leave a Comment »

martinzwilling_136Martin Zwilling Contributor

A startup begins with a great idea, but all too often, that’s where it ends. Ideas have to be implemented well to get the desired results. Good implementation requires a plan, and a good plan and good operational decisions come from good people. That’s why investors invest in entrepreneurs, rather than ideas.

People and operational excellence have to converge in every business, large or small. Microsoft found this out last year when their market capitalization, once at $560 billion in the year 2000, had fallen to $219 billion, allowing them to be passed by Apple at $222 billion, who grew from $15.6 billion during the same period. Both had access to the same technology, people, and market.

So what could have happened here? I found a good summary of the relevant keys to business operational excellence in a new book by Faisal Hoque, called “The Power of Convergence.” His focus is on repeatable practices to maximize business opportunities in large companies, but I’m convinced that these apply equally well to startups:

1.  Clearly define your value chain. Your value chain consists of customers, partners, vendors, internal systems, and your own team. Make sure you understand this chain, as well as market dynamics, to drive operational innovations and every decision. Apple has been able to innovate at an amazing pace to define and meet new market opportunities.
2.  Visualize abnormal or suboptimal performance. Recognizing and understanding deviations enables a startup or any business to take corrective action quickly. This requires executives and a team that understands the parameters, and is focused on customers, quality, and continuous improvement.
3.  Facilitate the power of your team. Startups need to empower their people to take action in the absence of orders. That doesn’t mean abdication in setting corporate policies, which provide parameters to ensure that individuals have to ability to act collectively in the company’s best interest. Steve Jobs has a committed team.
4.  Communicate effectively with the team and customers. Communication is a challenge in any organization, but it’s a particular challenge when you’re working in a startup, where customers, products, processes, and the team are new. Most founders forget that communication becomes exponentially more difficult as the business grows.
5.  Measure value flow and performance. Measuring performance may seem self-evident, but many entrepreneurs mistake this task as a point-in-time or a one-time event. In operationally excellent startups, performance measurement is an ongoing effort throughout the process chain, not just at the outcome.
6.  Define response mechanisms. Anticipating and planning for worst-case scenarios, and having a Plan-B, will enable the quick-response and pivots required to put a startup back on track. Metrics are required for ensuring the return to a known good baseline.
7.  Maximize technology architecture and standards. Continuous innovation to maintain your competitive advantage does not mean that you can ignore current architectures and standards. These must always be leveraged produce optimal intended product outcomes.
What every business needs is a convergence of business and technology elements to optimize return and competitive positioning. All too often, entrepreneurs posit a new technology or idea, without understanding that a successful business is a never-ending process of adapting and improving all the elements in a business – especially business model, processes, and people, as well as technology.

Apple, with Steve Jobs, has demonstrated a rare convergence of technology, market understanding, business process, and people. Are you focused on all the right execution principles in your startup to do the same?

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The Marlinspike* CEO by Jim McHugh, Consultant, Board Member and Member of Gerbsman Partners Board of Intellectual Capital

Posted in Board of Directors, Board Of Intellectual Capital, boic, James McHugh- McHugh & Co., Management, McHugh & Co., Strategy, Uncategorized on March 12, 2013| Leave a Comment »

header_02The Marlinspike* CEO by Jim McHugh, Consultant, Board Member and Member of Gerbsman Partners Board of Intellectual Capital
 

An in-depth management guide
for C-Suite executives, investors and advisors.

What to expect: Pivotal proven tactics to boost business performance, sharpen strategic focus and create lasting shareholder value.
Plus: Technology Telltales -Technology recommendations for entrepreneurs
Occasional networking events
Nautical references
Humor

  March 2013

CEOs:  Do You Run Your Company Well?

Here’s the question phrased a bit differently…What key elements turn your company into:
1.  an attractive acquisition candidate
2.  a great, fun place to work!
3.  a valuable asset for all shareholders
There’s no need to create your own list of key elements because the next section of this newsletter not only has the list of key elements called The Run The Company Well List, but there are suggestions on how to use it.

The Run The Company Well List
My list has fifteen key elements that encompass the business model, planning, leadership, people, customers, products/services, finances, operations and advisors. Does (insert your company name here) have:
1.  a clear, focused, comprehensive business model
2.  a cohesive and well-tested growth strategy
3.  an outstanding leadership team that works well together
4.  a problem solving culture that is based on trust, accountability and fun
5.  a motivated, loyal, skilled workforce that is well treated and compensated fairly
6.  unique, high quality products and/or services
7.  innovative go-to-market tactics
8.  happy customers, whose needs are well understood
9.  a diversified (not concentrated) collection of profitable customers
10. a strong and defensible competitive position
11. a balance sheet that is rock solid
12. a P&L that shows consistent growth, high margins and a justifiable expense structure
13. lean processes, effective information systems, strong financial controls
14. well cared for fixed assets
15. great advisors: Board of Directors and/or CEO Peer Group plus outside professional confidants

Today I’d like to dig deeper into #3 and #15 by reviewing the OPPOSITE of having great leadership and great advisors. What if an organization has a significant, persistent problem within the organization’s leadership ranks? I call this condition being Stuck in a Ditch. Getting Stuck in a Ditch is a result of having one or more of these 6 challenges:

1.  Weak, uninspiring leadership: The CEO does not have the necessary vision, leadership or management skills to direct the company.
2.  No respect: The CEO does not command the respect of the organization.
3.  The CEOs leadership style=strange behavior: The CEO’s (or could be the dominant, controlling shareholder) behavior causes constant anxiety throughout the organization.
4.  Corporate governance is broken: There is continuous tension about the ‘lack of alignment’ and ‘who we are’.
5.  Meddling: The constant, meddling actions of the controlling, outside investors in the day-to-day affairs of the organization have a direct, negative impact on the organization’s performance.
6.  No hands on the wheel: A good governance framework does not exist. There is no active Board of Directors or Board of Advisors; if one does exist, and it is only ceremonial in nature, that is almost the same (or worse) than not having one at all.

Any combination of these six issues clearly puts a major dent into The Run the Company Well List. People are perceptive; each one of these six situations is obvious to the employees. These Ditch conditions can lead to indecision, constant bickering or fighting and prevent the organization from moving forward with conviction towards common goals.

How can you put The Run The Company Well List to use in your company?

Lists can create conversation and discussion. More important,they can initiate ACTION.

Suggestions on how to use the list:
1.  As your personal pocket guide while you prepare your company for sale
2.  A roadmap to kick off a 2013 operational improvement plan
3.  An ongoing discussion tool with your Board of Directors/Advisors
4.  The agenda for an offsite meeting with your senior leadership team
5.  A quiz for the WHOLE COMPANY: Give it to all your employees, have them answer Yes, No, or Not Sure for each item, tally the results and publish the findings.
Download The Run The Company Well List by clicking HERE

* What is a ‘marlinspike’?


*The marlinspike is a nautical implement that is used to unravel nautical lines. It is also used to sew the lines together to join them, creating greater strength, or to create useful or decorative items from nautical line.

Detangling and sorting through the complex issues in a STUCK company is similar to using the marlinspike to detangle, sort through, and weave together a much stronger and long-lasting nautical line.  Whether trying to achieve a more secure future for a boat, or a company, the marlinspike approach may be needed. Jim enjoys the sea, its wildlife, and kicking around boats and marinas.

Connect with Jim

With a name like McHugh,
I couldn’t resist sharing
some March 17 shenanigans

CEOs: Do you need an objective look at your Run The Company Well List?

Nothing beats human interaction.
Here’s Jim’s offer for March:
1 Hour of Free CEO Coaching by Jim McHugh
by phone or online video chat (Skype or Google Hangout)
No strings attached
To contact Jim, go to steve@gerbsmanpartners.com and I will forward to Jim McHugh

The Marlinspike CEO is written by Jim McHugh. Jim is an Entrepreneur, CEO Coach, Optimist, Instigator of Positive Change…and Fixer of Stuck Companies.
CEOs, family owners, investors and Directors enlist Jim to be their ‘fresh pair of eyes’ and confidant.

Jim is also a long time friend and a person of high ethics and integrity.

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Alchemist Accelerator Graduates its First Class by Deborah Gage -Venture Capital Dispatch

Posted in Entrepreneurship, Financial Literacy, Management, Uncategorized, Venture Capital Dispatch on January 22, 2013| Leave a Comment »

Venture Capital Dispatch
An inside look from VentureWire at high-tech start-ups and their investors.

Jan 18, 2013

Alchemist Accelerator Graduates its First Class
By Deborah Gage

Helping businesses figure out how to make money has been less appealing for entrepreneurs than writing Web apps for the public, but that’s changing with Alchemist Accelerator, which was inspired by a Harvard Club of San Francisco project and is trying to instill business skills into technical entrepreneurs.

On Thursday on the Microsoft campus, backed by music from “Star Wars” and “Mission Impossible,” nine startup teams graduated from the Alchemist Accelerator, which offers a $28,000 investment, six months of training and introductions to potential customers and mentors from Stanford University faculty and Silicon Valley executives and entrepreneurs.

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Business Excelleration by Beatriz Infante

Posted in Beatriz Infante, Business Excelleration, Leadership, Management, Restructuring, Uncategorized, tagged , , on January 10, 2013| Leave a Comment »

First Six Months Template

The format for the First Six Months Plan is organized as a matrix with time across the top and areas along the vertical axis.  Because there will be many things you do not know initially, the timeline provides greater clarity in greater detail in the short term and is  “fuzzier” as you approach the six-month milestone.  So, for example, typical timelines would be:  First Two Weeks, Second Two Weeks, Second Month, Months 3-4, Months 5-6.  The rows consist of the key areas that will need investigation.  While this will be dependent on the specific situation, typical categories would include “Strategy”, “Financials”, “Personnel”, “Customers”, “Sales”, “Services”, and “Operations”.

First Six Months Template

In most cases, a good First Six Months Plan will result in clear visibility to your board or management, and a reputation will be established for both accomplishment and transparency. The First Six Months Plan is a living document.  As time progresses, it should serve as a tracking mechanism for milestones met or not met, using simple visual clues. For example, highlight completed items in green, incomplete items in red or yellow, deleted items crossed out.  You can even make your Six Months Plan accessible online, with click-able details for each item.

As the first six months come to an end, a smooth transition to a Rolling Twelve-Month Plan as described in the section on Transforming the Business – A Three-Step Process for Business Transformation will ensure continued progress.

Copyright © 2012 Beatriz Infante  – All rights reserved.

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