Accelerating Growth ACCELERATING GROWTH COPYRIGHT 2016 BY NEIL SHERIDAN / SVPI LLC

Transcription

1 Accelerating Growth

2 75 Minutes

3 PiN Thousands of early stage companies fail because predictable challenges in bringing their innovations to market are poorly anticipated and addressed by overwhelmed founders.

4 Goal This interactive session introduces how to manage common growth issues, stakeholder expectations, and strategic planning.

5 Approach We will discuss the Challenges growing companies face Changing role of founder Performing realistic self-assessments Identifying advisers Recruiting your team Developing your company s culture Engaging the board

6 Neil Sheridan Google me for LinkedIn CEO, SVPI LLC Innovation Leadership Researcher with Prof. dr. Aard Groen MS IT (GMI) / MBA Finance (NYU) Chair, Entrepreneurship Task Force, Small Business Association of Michigan US National Science Foundation innovation reviewer US Department of Commerce district export council appointee Consulting: Strategy, Organizational Development, M&A, Financial Management Taught / coached thousands of entrepreneurs and executives COPYRIGHT 2016 BY NEIL SHERIDAN 6 / SVPI LLC

7 Predictable Challenges

8 About PINE International collaboration of business, government and university members Helping to better align public and private entrepreneurial support with the priority needs and interests expressed by small and medium size enterprises Members

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10 PINE Activities Gather voices on small business priority growth issues Research how to help small and medium sized businesses grow Report to policy makers Advise support program managers Publish business management, economic development, and academic articles on findings

11 PINE Voices 71% growth-oriented with 86% focused on sales 70% independent with employees; 26% self-employed 82% of respondents were owner or CEO 42% women / 11% minority / 8% vet and 48% none 62% companies 15 years or less in business 70% are seeking help with 20% - 60% of challenges faced 71% would recommend Michigan as a place to business

12 PINE Discoveries: Top 5 Challenges Workforce or talent development (44%) Accessing capital (44%) Defining and serving a market (40%) Operations and technology (25%) Management or administration (20%)

13 PINE Discoveries: Talent 1. Recruiting qualified employees 2. Attracting leadership and management members 3. Training 4. Retaining

14 PINE Discoveries: Capital 1. Attracting alternative sources of capital 2. Finding below market rates 3. Assessing your needs for financing 4. Developing a business case for getting loans

15 PINE Discoveries: Markets 1. Developing marketing and sales strategies 2. Researching markets and customers 3. Innovating new products and services 4. Assessing risks of market entry

16 PINE Discoveries: Ops 1. Developing processes and procedures to operate more effectively 2. Keeping up with current technologies 3. Implementing consistent quality control 4. Providing secure data management

17 PINE Discoveries: Management 1. Implementing right management structure 2. Strategic planning 3. Managing cash flow

18 Changing Role of the Founder

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20 Changing Role of the Founder Chef, Cook, Bottle-washer -> Strategic Leader Micro-management vs. Strategic Perspective Vision Thinking as a Big Company Do > Lead > Leading Leaders > Leading Change

21 At Pre-conception (Lonely)? Prophet Architect Researcher (A true problem? Solution? Feasible?)

22 At Conception? Engineer Project Planner Evangelist Sole Investor?

23 At Founding / Start-up (Leads)? Chef / cook / bottle-washer: Project Manager Business Development Manager (or Director) Resource Seeker HR Department

24 After $5m Sales (Leads Leaders)? Hires and oversees development of the product, organization, processes/procedures, customer base Selects and develops (or collaborates) on the creation of a management team Very active in representing the business day to day

25 After $50m (Leads Leaders of Leaders, or )? Strategic direction and strategic representation Mergers, acquisitions, divestment? Continues as CEO or Board only? CTO, etc Possible Exits: Sells or Quits / Failure / Fired

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27 Performing Realistic Self-Assessments Critically assess: Technology Business Model You / Talent / Network Capture what your Program Directors, Tech Transfer Officers, investors, advisors tell you Sources of self-assessments: Kauffman Foundation, Accelerators, SBDC, personality tests Bake your own: What do you want to cover? Can be converted in Performance Improvement metrics

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29 Identifying Advisers (Some Examples) Seek Out Both Technical Advisers in Your Discipline(s) and Managerial Processes Business Development / Social Business Financial (Accounting, Treasury, Tax, Investor Relations) Forecasting: Risk Management and Weighing Opportunities Talent (HR) Legal and Regulatory

30 Exercise: Where Can You Look?? At the Technology Showcase, Educational Sessions Your regional R&D, investment, accelerator networks Your TT office, accelerators, economic development programs Craig s List Researching and reading online

31 Credit: Wikipedia / Tobias Klenze

32 Growing Your Management and Workforce

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34 Start with Who They start by getting the right people on the bus, the wrong people off the bus, and the right people in the right seats. Jim Collins, Good to Great Public Domain by EHH

35 Building a Losing Team Pick people because: They re your friends They like you They re good-looking They don t argue They are family Public Domain Public by Domain EHH

36 A Role for Everyone Think about what needs to get done. Who is good (or can become good at a task) Make changes quickly. Public Domain by EHH

37 Recruiting for Your Team 1. Completes your needed skills and knowledge; supplements depth as needed 2. Credentials / experience would impress potential investors, advisors and customers 3. You feel comfortable interacting with them 4. Reliable, realistic and committed to results

38 Recruiting a CEO 1. Demonstrated, referenceable EXPERIENCE (in your sector), contacts, ability, passion for the coming stage 2. Credentials / experience impressive 3. You re ready to trust (VP/COO first?) 4. Concrete about what she or he wants of you 5. Understands may not be CEO in following stage

39 Exercise: Where Can You Look?? Look very broadly and build a large pool of candidates: Inside first Business and technical coverage of your space Leverage your board s contacts Consult regional (or further) economic developers Executive search firms or consultants

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41 Developing Your Company s Culture Mission / Vision / Values How You Treat Each Other (Founders, Advisers, Hires) How You Treat Your Customers, Suppliers, Investors Setting and Achieving Goals SMART (Specific, measurable, achievable, relevant, time-bound) Work/Life Balance

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43 Engaging the Board Usually wish to actively offer their expertise, contacts, market insights, war stories, [additional investment]. Can help with: Setting appropriate scope and strategies to achieve Recruiting skills and other board members Network extension Scaling Up: Help attract and apply resources 4 S Model for R&D Value Creation and Commercialization

44 4 S Model : Accumulating and Applying Capital to R&D Firm Growth Drs. Aard Groen and Petra DeWeerd- Nederhof of the University of Twente NIKOS Institute, et alia, 2002 Goal attainment using strategies and power Adaptive goals using human and cultural capital STRATEGY / SCOPE SKILLS SOCIAL NETWORKS SCALE Integration by interaction Economic adaptation leading to efficiency

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46 Valley of Death Credit: NIH

47 Credit: Wikimedia / LosHawlos

48 Your Next 3 Steps

49 Identifying Three Steps for Growth Step 1: Dominant Challenge Which challenge to growth reflected most strongly with your own? Pick from these or your own: Workforce or talent development (44%) Accessing capital (44%) Defining and serving a market (40%) Operations and technology (25%) Management or administration (20%)

50 Step 2: Concrete, Specific Context of the Challenge for Your Company 1. What 2. How 3. Why 4. When 5. Who 6. How much?

51 Step 3: Commit to 3 Actions in June to Tackle the Challenge ACTION 1 ACTION 2 ACTION 3 1. What 1. What 1. What 2. How 2. How 2. How 3. Why 3. Why 3. Why 4. When 4. When 4. When 5. Who 5. Who 5. Who 6. How much? 6. How much? 6. How much?

52 Some Starting Points

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54 Your Help 1. Invite you to contribute to PINE insights? 2. Feedback Forms

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