TEAM DEVELOPMENT Through the Life-Cycle of the Technology Enterprise ABOUT LARCEN STRAYER “Building strong business fundamentals through excellent people practices” Integral part of Silicon Valley since 1983 Involved with 200 start-ups Business approach focused on tools and techniques AGENDA Overview the basics of team development Frame the start-up life-cycle Identify the challenges inherent in each stage of the cycle Review strategies for building effective teams through each stage CHARACTERISTICS OF HIGH PERFORMING TEAMS Communicate openly and freely Provide each other with open, direct feedback Hold each other accountable Manage time and effort productively Fully utilize diverse strengths, styles, points of view Define and follow decision making guidelines Manage conflict effectively Team Development Process Stage 5 Collaboration Stage 4 Individual Differentiation PERFORMING Stage 3 Confrontation NORMING Stage 1 Membership • expectations of leaders •interdependencies Stage 2 Sub-Grouping FORMING •style •values/philosophy •roles STORMING •feedback •rules of engagement •power KEYS TO CREATING HIGH PERFORMING TEAMS Recognize and plan to the inevitability of the cycle Devote time to team development activities Identify and immediately address team issues Set and enforce constructive team norms Readdress team development with any change in team composition Don’t tolerate the “prima donna” syndrome STARTUP LIFE CYCLE Build the Organization Emerging Adult Satisfy the Customers Adolescence Childhood Infancy Clarify the Idea Mature Adult Complete the Product CHARACTERISTICS OF CHILDHOOD Like a 2-year-old -- into everything Success and arrogance See no problems -- only opportunities Every opportunity is a priority No systems, no policies, no control Planning by wishful thinking Founder struggles with delegation Founder first to violate rules and policies CHILDHOOD -COMMON TEAM ISSUES Lack of diversity of skills and points of view (focus on product development) Founder team resistance “Group think” if all come from same company CEO hiring his friends rather than to needs “Morphing” roles CHILDHOOD -RECOMMENDED TEAM ACTIVITIES Clarify vision, values and “rules of engagement” Agree upon and enforce standards for accountability Define a common vision for leadership Create clear descriptions of roles (and how they may change with growth) Set an expectation for ongoing assessment, feedback and development Reserve time devoted to team-building CHARACTERISTICS OF ADOLESCENCE High turnover, complaints from senior leaders Oozing strategy -- still highly opportunistic Chaotic, overwhelmed -- not focused on priorities Constant change in roles Rebellion against beginning structure Senior managers still doing too much “hands on” -- need to build next level management ADOLESCENCE -COMMON TEAM ISSUES Additions to leadership team result in narrowing roles Jobs may outgrow skill levels of initial executives Size and complexity of business require narrowing of involvement in decision-making CEO transition may result in style change VP’s (individually and as a team) must move into more strategic role ADOLESCENCE -RECOMMENDED TEAM ACTIVITIES Make sure structure continues to track to evolving vision Clearly define new roles before hiring new members of team Support individuals and team in clarifying changes in roles Proactively address changes in decision-making involvement Continue to expect ongoing assessment, feedback and development Continue to devote time to teambuilding, addressing the need to “re-form” with new members Pay attention to building functional and cross-functional teams LEADERSHIP TEAM Mature Adult Plan for Growth •Develop growth strategy •Instill discipline •Build next level of leaders Emerging Adult Cross Functional Planning •Develop and align around strategic plan • Create framework for monitoring functional Adolescence Childhood Infancy performance •Identify/address infrastructure needs Effective Functional Team Leadership •Functional support of product introduction •Plan for scaling function •Identify/prioritize skill/headcount needs SIGNS OF TROUBLE Turf battles High turnover/complaints from senior leaders Lack of visibility/plan from each function Unclear roles/boundaries Tolerance of “prima donna” behavior Lack of cross-functional goal alignment No clear successors or next level managers identified CEO ROLE Mature Adult DELIVERING RESULTS AND PREPARING THE MARKET • IPO •M&A • STRATEGIC PARTNERS Emerging Adult BUILDING THE CROSS-FUNCTIONAL TEAM Adolescence DRIVING THE TECHNICAL TEAM Childhood Infancy FOUNDER GROUP DOMINANCE SIGNS OF TROUBLE High turnover, complaints from senior leaders Company is focused on short-term transactions rather than long terms strategies Frequent tension/conflict between CEO and Board Lack of credibility with investors Ineffective recruitment of senior leaders Lack of communication/understanding of vision Dysfunctional culture