Building and Managing Your Entrepreneurial Team! Business Benefits for Entrepreneurs from TGI Role-Based Assessment TM Dr. Janice Presser, CEO The Gabriel Institute Copyright© 2010, The Gabriel Institute. All Rights Reserved. Contents • Which is better: Talent or Teams? • Why do ‘failed hires’ keep happening? • How can you predict – and control – team performance? • Three steps to Business Value in your entrepreneurial organization. Copyright© 2011, The Gabriel Institute. All Rights Reserved. Which is Better, Talent or Teams? • In sports, the best TALENT costs more, but the best TEAMS win more • Do ‘the best and the brightest’ always make the best team players? • Talent can be measured in many ways, but can you measure ‘teaming’? Copyright© 2010, The Gabriel Institute. All Rights Reserved. He looked like the perfect CEO. He left the Board in the dark & ‘bulldozed’ all opposition to the new technology. The CTO quit; the launch failed. And the write-down wiped out two years’ profits. Copyright© 2010, The Gabriel Institute. All Rights Reserved. She had a superstar ‘rep’ as a Sales VP, and she looked the part. She grated on your top salespeople… and they left. She antagonized customers… and they left. She embezzled $180k. Copyright© 2010, The Gabriel Institute. All Rights Reserved. You had a great team. Your Director of Administrative Services retired. You asked the recruiter for someone with a ‘firm hand.’ You got what you asked for. Now every management meeting goes ten rounds. Copyright© 2010, The Gabriel Institute. All Rights Reserved. The new Executive Assistant was everyone’s #1 pick. Mis-communication and finger-pointing became common. People who had worked well together for years became enemies. Bad things can come in small packages. Copyright© 2010, The Gabriel Institute. All Rights Reserved. Business is a team sport. Copyright© 2010, The Gabriel Institute. All Rights Reserved. They all spell ‘team’ with 2 letters: ME Copyright© 2010, The Gabriel Institute. All Rights Reserved. When people can’t (or won’t) ‘team’ well, what happens to team performance? Copyright© 2010, The Gabriel Institute. All Rights Reserved. SBA: 34% of new enterprises close within 2 years. VC industry: 60% of failures are due to people problems Copyright© 2010, The Gabriel Institute. All Rights Reserved. Lack of Positive Synergy • • • • Distraction - failure to maintain focus Dissention - failure to communicate Disengagement - failure to commit Diversion - failure to execute Both research and practice indicate that 60% of VC-funded companies fail due to internal factors: people, management, execution Copyright© 2010, The Gabriel Institute. All Rights Reserved. Who Wants Team Players? • QUESTION: What percentage of business people want good team players on their teams? 100 ? • ANSWER: _____% What would it mean for your bottom line if EVERY person in YOUR company was a highquality team player? Copyright© 2010, The Gabriel Institute. All Rights Reserved. The Ugly Truth About Hiring • 40% of newly promoted managers and executives fail within 18 months Source: Manchester, Inc. • 46% of U.S. new hires must be classified as failures within their first 18 months (fired, pressured to quit, required disciplinary action, etc.) Source: Leadership IQ • 58% of new executives hired from the outside, fail in their new position within 18 months Source: Michael Watkins • Nearly two-thirds of hiring managers come to regret their interview-based hiring decisions Source: DDI • 65% lie on resumes Source: The Risk Advisory Group Copyright© 2010, The Gabriel Institute. All Rights Reserved. How many times have you seen… Pre-hire evaluation • Good ‘fit’ • Relevant knowledge • Progressive growth of responsibility • Excellent resume • References • Superb interview On the job • No clear leadership • Lacking good judgment • Missing key goals and deadlines • Not measuring up to expectations • Inappropriate workplace behavior Result: undesired termination! Copyright© 2010, The Gabriel Institute. All Rights Reserved. Data is not Information • SMART ≠ MOTIVATED • EXPERIENCED ≠ PRODUCTIVE • AGGRESSIVE ≠ EFFECTIVE • CHARMING ≠ CONSTRUCTIVE • How much do resumes, interviews, IQ and personality factors tests really tell us about team performance? Copyright© 2010, The Gabriel Institute. All Rights Reserved. The Sales Team Example • Sales ‘personality’: elevated levels of extraversion and aggression are ‘pass-fail’ measures for getting a job in sales • BUT…sales departments typically have high turnover and a high percentage of people who fail to achieve their objectives • Personality factors align well with being in the sales profession…but not with success in selling! • Effective selling requires effective teamwork Copyright© 2010, The Gabriel Institute. All Rights Reserved. What about the Team? • CEO’s bet their vision on the team • VC’s bet their funding on the team • What are they really betting on? Copyright© 2010, The Gabriel Institute. All Rights Reserved. Why is this Crucial for a Startup? • You can’t do it alone – it takes a team... • BUT – even one ‘wrong-fit’ person on a startup team can delay or derail success • You need people who are flexible enough to do what’s needed... • BUT – if you don’t give them enough of what they like to do, they won’t stay • You may have the desire to start the business... • BUT – do you have the desire to work with others to actually make it happen? Copyright© 2010, The Gabriel Institute. All Rights Reserved. Why is this Crucial for a Startup? • You and your team need to be able to TEAM well with others – Your team – Your customers – Your advisors – Your investors • Startups require more energy than existing companies • What does it take to get ‘liftoff’? Copyright© 2010, The Gabriel Institute. All Rights Reserved. There is a completely new way to predict how people will perform in teams. Copyright© 2010, The Gabriel Institute. All Rights Reserved. RBA: A new way to know! Created by The Gabriel Institute Behavior Performance Gerber-Presser Exec. Behavior Lowenfield Mosaic Rorschach Personality Gerber Mosaic Figures Woodworth (U.S. Army) MMPI Pathology Gerber-Presser Enhanced EBA Allport Values Cattell 16PF Personality MyersBriggs TGI Role-Based Assessment Components Hartman Axiology/EQ 5-Factor Theory DiSC Predictive Index Caliper Intellect BinetSimon IQ Raw Material StanfordBinet IQ Wechsler WAIS U.S. Army Alpha-Beta 1900 1920 1940 1960 1980 2000 2010 Predicting behavior adds measurable business value Copyright© 2010, The Gabriel Institute. All Rights Reserved. What you measure is what you get. Copyright© 2010, The Gabriel Institute. All Rights Reserved. Predicting Business Value Behavior Role-Based Assessment Behaviors determine team Performance Personality Individual traits measures are ‘Components’ Intellect IQ testing measures ‘Raw Materials’ 1900 1920 1940 1960 1980 2000 2010 Different Measures…Different Results Copyright© 2010, The Gabriel Institute. All Rights Reserved. TGI Role-Based Assessmentī¤ • 25+ years’ R&D; 3 separate iterations, to answer the question ‘What really happens when people team together?’ Launched online in Q3 2009. • New technology employs multiple interlocking behavioral simulators; cannot be ‘gamed’ • Identifies ‘teaming behaviors’ that impact success of both individuals and teams • Validated by direct observation (‘from the Board Room to the mailroom’; RBA reports matched to performance assessments from managers) • In its first year of general availability, RBA is used by the U.S. Dept. of Justice, HP, the State of Montana, and over 50 other organizations. Copyright© 2010, The Gabriel Institute. All Rights Reserved. Using RBA • RBA is a confidential, on-line 60-minute exercise • The individual is addressed as an actor in films, and is asked to makes specific choices about his/her ‘starring roles’ in a series of 10 movie scenarios • Once completed, two reports are generated, one for the individual (SD-1 self-directed) and one for management (MD-1 management-directed) • The SD-1 report is designed to provide positive, supportive self-coaching and teambuilding advice • The MD-1 report predicts the individual’s teaming behavior, with specific management guidance to achieve full potential for the individual and for their team • The MD-1 also identifies areas of concern, and potential ‘red flags’ Copyright© 2010, The Gabriel Institute. All Rights Reserved. RBA: reveals information not identified by other means • Coherence • Role • Teaming Characteristics Copyright© 2010, The Gabriel Institute. All Rights Reserved. RBA Metric #1 ‘Coherence’ describes a positive orientation to group achievement. Coherent people work well with others; Rigid and Diffuse people do not. Coherence is central to Quality of Hire: getting the right people! Copyright© 2010, The Gabriel Institute. All Rights Reserved. One thing you can count on… A Coherent person will be a good team player. Copyright© 2010, The Gabriel Institute. All Rights Reserved. RBA Metric #2 ‘Role’ is a person’s attraction to one of ten specific organizational needs, e.g., planning vs. execution vs. helping others. Role is key to getting the right people into the right seats Copyright© 2010, The Gabriel Institute. All Rights Reserved. The Team Starts with the Founder • Has the Vision • Inspires Followers • Feeds the Team Copyright© 2010, The Gabriel Institute. All Rights Reserved. Vision Balanced by Grounding Vision Mover Vision Former Copyright© 2010, The Gabriel Institute. All Rights Reserved. Drive Balanced by Organization Action Mover Action Former Copyright© 2010, The Gabriel Institute. All Rights Reserved. Obtain and Provide the Essentials Explorer Watchdog Copyright© 2010, The Gabriel Institute. All Rights Reserved. Create Community, Culture, and Coordination Communicator Copyright© 2010, The Gabriel Institute. All Rights Reserved. Fix Problems, Bank the Solutions Conductor Curator Copyright© 2010, The Gabriel Institute. All Rights Reserved. A Group of Proven Entrepreneurs • Role ‘fit-to-mission’ and very high percentage of people with a strong ‘secondary’ Role • 14 RBAs reported; 22 strong Roles; 91% ‘visionaries’ • • • • • • • • • • Founder - - - - - - - 10 Vision Mover - - - 7 Vision Former- - - 3 Action Mover - - - 1 Action Former- - - 0 Communicator - - 0 Conductor- - - - - - 0 Curator - - - - - - - - 0 Watchdog - - - - - - 0 Explorer- - - - - - - - 1 ] Copyright© 2010, The Gabriel Institute. All Rights Reserved. Volunteers Serving the Poor through education • 64 RBA’s reported; 24 multiple roles • 63% Role-fit to preserving, communicating, and sharing knowledge • • • • • • • • • • Founder - - - - - - - 5 Vision Mover - - - 4 Vision Former- - - 7 Action Mover - - - 4 Action Former- - - 8 Communicator - - 32 Conductor- - - - - - 10 Curator - - - - - - - - 11 Watchdog - - - - - - 3 Explorer- - - - - - - - 8 ] Copyright© 2010, The Gabriel Institute. All Rights Reserved. Why Role is so important… Aligning Roles with job responsibilities improves workplace performance. Copyright© 2010, The Gabriel Institute. All Rights Reserved. RBA Metric #3 ‘Teaming Characteristics’ are the qualities of a person’s work with other people, inside and outside the organization. When people feel that they ‘fit’, they also work better, stay longer, and produce more Copyright© 2010, The Gabriel Institute. All Rights Reserved. Organizational Value Teaming Characteristics align job-fit with industry, culture, and business needs. Copyright© 2010, The Gabriel Institute. All Rights Reserved. Use the Metrics of Human Infrastructure to Manage Better! • Align Role with job responsibilities: increase individual job satisfaction and productivity • Align Roles on a team with mission of team: raise team output, quality, & collaboration; identify and resolve performance issues • Raise overall Coherence and Role-fit: improve organizational synergy; create a high-performance organization; build a Coherent Human Infrastructure Better People, Better Teams, Better Performance Copyright© 2010, The Gabriel Institute. All Rights Reserved. A Real-world Business Solution • UK wholesalers’ management team meetings erupt in discord, sniping, and threats • RBA reveals: two key people (of seven) are diffuse and do not fill any Role effectively • One quits immediately; one is watched more closely until incompetence is documented • Replacements are hired – Coherent, right Roles, great Teaming Characteristics • Meetings become positive and productive, profitability rises 18% in 9 months! Copyright© 2010, The Gabriel Institute. All Rights Reserved. What would happen if everyone on your team could be a great team player? Copyright© 2010, The Gabriel Institute. All Rights Reserved. Get Business Value! • Try a TGI Business Solution at No Cost – Assess 5 candidates for a current hire, 5 candidates for a promotion, or 5 members of a troubled team • Do a TGI Pilot Project – Quality of Hire, Leadership, or Teambuilding – Quantify the benefits using your own measures • Use RBA first where business value is greatest – Looking for funding? Prove you’re a great team! – Optimize hiring; reduce turnover, repair team issues – Build a Coherent Human Infrastructure TM Copyright© 2010, The Gabriel Institute. All Rights Reserved.