startup leadership short
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had to give a talk on te dnamics of leadership and teams in startuTRANSCRIPT
Leadership without Organisation Perspectives on management and group dynamics of startups 19.11.2012 Oliver Holle, CEO Speedinvest
Startups
What is a Startup?
Designed for very fast growth
Small in size (2-‐5 people)
Recently founded
O"en, not always: Technology focus Innova1on Interna1onal Young founders
Not every new company is a startup, actually most are not...
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InnovaIon & Startups
Not every startup is innovaIve!
True technology innovaIon is the exempIon, not the norm
ONen translaIon of new digital business models in new sectors / industries
Copy cat phenomenon
Key success factor speed & execuIon
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Startup Boom 16% of Stanford's MBA program start their own company, up 3x since 2009 (Fortune Magazine)
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Startup Boom
In 2003, Google was a five-‐year-‐old, privately-‐held startup and Bear Stearns was an 80-‐year-‐old pillar of the financial sector. Five years later, Google was a pillar of the technical economy and among the world’s biggest companies; Bear Stearns had ceased to exist. The comparaIve appeal of the two sectors has dramaIcally shiNed.
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Costs to launch an Internet Startup
The Lean Startup Paradigma
Extremly short Development Cycles
“Minimum Viable Product”
Immediate User Feedback
Constant IteraIon & Pivots
Metrics, Metrics, Metrics
The New Startup Landscape
Startup Factories
Acce-‐ lerators
^^
Super Angels
Professional Support Benchmarking & CompeIIon Struktures & Processes Rapid Prototyping
„Industrialisa2on of startup szene“
The Culture of Failure
Startup founders are "connoisseurs of failure, experts in both avoiding it and living with it“
Paul Graham, Ycombinator
My fund is a "fail factory" Dave McClure, 500 Startups
Top Silicon Valley conference = FAILCON
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Startups -‐ Risk / Reward Profile
Big companies aren’t as stable as you think
Big companies aren’t loyal to employee
Startups that have financing pay premy well
When you join a startup, you are also joining a network
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market salary
No salary
Low salary
Failure: try again
Back to normal job
Founder @ well funded startup
Equity kicker
Startups as a Career Path
For most people I know who join or start companies, the primary goal is not to get rich. It is to work on something they love, with people they respect, and to not be beholden to the vagaries of the market. In other words, to be independent.
Paul Graham
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Leadership in Startups
What makes Founders Tick?
Status Money Interest EmoIons Quality of Life
Is it different from the rest?
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Startup Universe
What makes Founders Tick? Is it different from the rest?
Status Money Interest EmoIons Quality of Life
Key MoIvaIng Factor = Immediateness
Joint results
All key tasks are performed by the group
Extremly short feedback cycles
Clearly visible compeIIon
Team issues are direct, immediate, no corporate poliIcs
Success only in the team, no individual career paths
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ObservaIons at succesful startups
Immediateness requires authenIcity
Lack of formal hierarchy requires conInuous jusIficaIon of leadership role
Joint view on the future is key
„EmoIonal Pressure“ instead of tracking Ime in office
Barriers between work and life keep blurring
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What Startup Leaders Offer
I will watch out for you
I will make you rich
I have the vision
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What Keeps Teams Together
Trust & Commitment
"together through hell and beyond"
Cash: "my ticket to fame & fortune"
Interest: "Experts & Geeks united"
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Trust & Commitment
"together through hell and beyond"
Cash: "my ticket to fame
& fortune"
Interest: "Experts & Geeks united"
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Innovation Facts, Expertism Reputation Lack of felxibility Internal focus Market comes last
Commitment Flexibility Crisis resistant Team quality Tough Choices Internal focus
Professionalism Focus Market perspective
„Hired guns“ Lack of innovation Risk of breaking up
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Leadership Dynamics
Startup Lifecycle
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Startup Lifecycle & Team Dynamics
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Geeks
Friends
Cash
Dynamics in Startups
Never equals, always leadership roles early on
People choose to be in first or in second row
Role assignment along social skills, formal skills and experience
CEO oNen not shareholder #1
Key differenIaIon: management role VS. shareholder
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We will rock the World!
Not them... Ycombinator Alumni broke
HTLM5 Guru Not very social
MBA Stanford Rich parents put in $50k
Excellent with people 1st time founder
Technical University Had idea, built prototype
Driven by solving problems No startup experience
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Not them... Ycombinator Alumni broke
HTLM5 Guru Not very social
MBA Stanford Rich parents put in $50k
Excellent with people 1st time founder
Technical University Had idea, built prototype
Driven by solving problems No startup experience
CTO 40%
CEO 40%
CxO 20%
Not them... 80h / week 10 other joboffers
Starts to look around
Put in another 50k No sales traction
No salary No girlfriend
Loves it
Happy that no one disturbs quest for solution
Not them... Finally a salary and some
more Engineers!
YES! Reputation Coolness
Path to fame Mildly interested
Not them...
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New role 2nd tier gone
Seen as „brain behind“ New Chief Architect
+ new CEO
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10% 5% 10%
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And this is just the beginning.....
The Deadly Triangle
Constant change & insecurity in all three parameters
EmoIons and personal stakes run high -‐> high risk of escalaIon
External influences increasingly dominant: market, investors, product
Underlying „cooperaIon contracts“ will change over Ime
All this requires enourmous stress resilience for founder/CEO 33
Team role Founder role
Relationship
Leadership Challenges
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CooperaIon contracts change with Ime (and age of founder)
High level of unertainty produces enormous stress levels
AcIve & reacIve phases require different types of leadership skills
Different types of pressure situaIons require different levels of personal discipline
Keeping emoIonal Ies with all stakeholders is key
Required: very high level of self conficence, bordering to ignorance/narcissm while keeping flexible in mind & open to new ways -‐ art of entrepreneurship
What can be learned from startups?
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Keep units small
Keep them working, let them fail themselves
Offer incenIves that mamer
AuthenIcity & Freedom
Treat them as counterparts, not as resources
thanks! Oliver Holle, CEO Speedinvest +4369913205532 [email protected] Twimer: @oholle www.speedinvest.com