scaling your startup after investment
TRANSCRIPT
Scaling Your Startup After Investment
Who We Are
Michael Walker
Managing Partner
[email protected]@_walkerdavies
Larry Kotch
Co-Founder
[email protected] @brainbroker1
Overview
4 Hiring With Purpose & Development Planning2 Devolving Responsibility
1 3Org Structure & Strategic Use of Products & Freelancers
The Role of the Startup
Leadership Team
01 The Role of the Startup Leadership Team
Dude, where’s my Chief Knowledge Officer?
CEO
CKO
CMO
CDOCOO
CTO
CPOCPO
CIO
CFO
Top tip: Just to get us warmed up...don’t hire people into C-level positions unnecessarily, as you grow you will need to attract & incentivise more experienced people but to start with just focus on your immediate NEEDS.
The role of the startup leadership - Assessing the needs
Ignore the standard startup structure
Consider the requirements of the business
Conduct a brutally honest assessment of your own abilities
Appoint a team that will complement your strengths & weaknesses
Remember that the needs of a startup through scale-up business change quickly
What skills, knowledge &
experience do you NEED on your
leadership team?
Not So Fun Fact: As the founder you do not have to be the ‘CEO’ by default. Consider who would be best qualified to do this. Don’t use C-level titles for the sake of it
Your leadership must be comfortable being ‘hands-on’ to begin with before transitioning to a more strategic focus over time (if not you will have a decision to make later on)
The changing role of startup leadership - Early on
Leadership Management
Leadership
Define mission
Set out strategy to achieve mission
Inspire & motivate
Management
Tactical - how will we achieve the business strategy
Organisation of work
Line management
Assign responsibility & ensure accountability
Fulfilling responsibilities for specific business area(s)
Leaning more towards management in the early stages.
The changing role of startup leadership - Later on
More leadership, less management More strategic oversight
Know your numbers! Keep a close eye on the important metrics
Put managers in place to limit your number of direct reports
Focus on your key customers or accounts
Keep everyone focus and working towards the same goal
Stay visible to employees, you might have meetings all over the place but make sure you get time in the office
As the company progresses, the responsibilities of the leadership team change
Leadership Management
Devolving Responsibility02
Delegate
Don’t do this:
If you have to sign off every decision you become the bottleneck
Understand your limitations, you can only control so much
Automate controls where possible
Assign budgets
Top tip:
Schedule updates
Aim for admin free leadership
Only hire managers & staff you will be comfortable delegating responsibility to, set them objectives and give them the freedom to succeed
03 Organisational Structure & Strategic Use of Products & Freelancers
The Core Periphery Model
The Core
The Periphery
C-SuiteManagementEquitized StaffTeam LeadersProject ManagersTeam Members
FreelancersOutsourcedConsultantsContractors
And always consider automation!
When considering your hiring & resourcing plans think about your business with the Core / Periphery model in mind
The Core Periphery Model
You need to make IP the core
Strategic work (must be owned by the core even if provided by a freelance expert)
Product builders
Business development and sales (due to lead times & onboarding)
Experts set strategy using experience
Junior executes and relays to expert
Junior is motivated through self development
Consultant phased out
Strategic Use of Experts
The Optimal size of the Periphery should change with the Company over time
Org Structure
MARKETING SALES DELIVERY SUPPORT INSIGHTS
Campaign Creation
Campaign Management
AgencyManagement
Content Creation
Marketing Strategy
Telesales
Business Development
Sales Strategy
Sales Team Leadership
Engineering
Client integration
Customer Support
Account Management
Training & Development
Accounting
Operations Strategy
Data Analysis
Reporting
FLOW OF INFORMATION
Technology Strategy
Human Resources
Review the customer journey and the flow of information though your company. Design your future org structure to make this as efficient as possible. Consider which responsibilities should sit in the ‘core’ and which in the ‘periphery’ - then check out the relevant products and services which can automate these processes and fill in the gaps with freelancers where necessary
Useful Products / Services
DELIVERY & SUPPORTMARKETING INSIGHTSSALES
Hiring With Purpose & Development Planning04
Hiring with purpose
4 Offer more than just salary – share the vision
2 Look for ‘fit’ not just skills/experience
1
3Recruiting is marketing! Optimise your marketing platforms, content and website
Make it clear what your talent gets from you5
Map out your goals and plan how
your team will achieve these*
Note: *‘Define your objectives, plan how you are going to achieve these. Then design the job specifically to work towards achieving these objectives, then decide a job title. Don’t just hire based on pre-existing job titles.’
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What does hiring cost?
41% of companies say that a bad hire cost them at least
Replacing an employee costs an
average of
Average placement costs with recruiters
£4.5k £19k£30khttp://hiring.monster.co.uk/hr/hr-best-practices/recruiting-hiring-advice/managing-hiring-costs/what-are-the-general-costs-of-using-recruitment-agencies.aspx
http://www.hrreview.co.uk/hr-news/recruitment/it-costs-over-30k-to-replace-a-staff-member/50677
http://www.fastcompany.com/3028628/work-smart/infographic-how-much-a-bad-hire-will-actually-cost-you/1
Don’t just focus on reducing your hiring costs, if you make the wrong hire and it doesn’t work out that will cost you a lot more!
Development Planning
The startup to scale-up path can mean a lot of changes in a short timeframe
Develop workforce capabilities, build a leaner business, increase employee engagement, improve performance & grow faster.
When making early hires it is important to think ahead, the job you hire that person to do is likely to change
Development plans should be flexible to allow the business to build capabilities it needs
Increased Business Growth
High Performing Individuals
High Performing
Teams
Increased Productivity
High Performing Managers
Do it.
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An engaged team is worth it
Attract long term
employees
Double revenue
High levels of employee engagement can increase revenue by up to 2.5 times
Engaged employees are 87% more likely to stay compared to their less engaged counterparts
http://wisembly.com/en/blog/2016/05/05/the-value-of-getting-employee-feedback
“You have to learn the rules of the game. And then, you have to play better than
anyone else.” – Albert Einstein
Chat with us!
Michael Walker
Managing Partner
[email protected]@_walkerdavies
Larry Kotch
Co-Founder
[email protected] @brainbroker1