E145 Fall Session 9. Entrepreneurial Teams: NanoGene Technologies Inc.

Transcription

1 E145 Fall 2007 Session 9 Entrepreneurial Teams: NanoGene Technologies Inc. Tom Kosnik, Fenwick and West Consulting Professor, STVP And Gordon K. Davidson, Firm Chairman, Fenwick and West Copyright 2007 by the Board of Trustees of the Leland Stanford Junior University and Stanford Technology Ventures Program (STVP). This document may be reproduced for educational purposes only. Page 1

2 Our Agenda Teams open the NanoGene Technologies Case Discussion about compensation and culture Role Play the negotiation between four stakeholders: Will Tomkins, Nanogene CEO Paige Miller, potential executive Will s scientific cofounders Susan Stone, Venture Capitalist, potential investor Gordon Davidson: Lessons from the Valley Page 2

3 Last Month: Idea Versus Opportunity Compensation & Culture This Month: Realities of Business Operations 2003 Mark P. Rice, Babson Page 3

4 Figure 1-1. Model of a Total Rewards Program Work Culture & Climate Leadership & Direction Career/Growth Opportunities Work/Life balance Job Enablement Recognition Cars Clubs Physical Exams Retirement Health Common Examples Reward Elements Definition Time Off with Pay Statutory Programs Income Replacement Stock/Equity Performance Shares Annual Incentive Bonus/Spot Awards Base Salary Hourly Wage Intangibles (Typically Intrinsically Valued) Perquisites Benefits Long Term Incentives Short Term Variable Base Cash Total Reward Total Remuneration Total Direct Compensation Total Cash Source: Hay Group. Page 4

5 Understanding Culture Maslow s Hierarchy of Needs Self- Actualization Achievement Affiliation Order and Security Page 5

6 The Four Business Cultures Individual Accountability Can do Let it happen Cultivation (Self-actualization) Google Collaboration (Affiliation) AT&T Consumer Group Accountability Competence (Achievement) Microsoft Control (Order & Security) IBM Did do Make it happen Page 6

7 Cultivation Culture Core Motivation Value Discipline Differentiates by Leads from Organizes by Accountable to Preferred by Degenerates into Doing the unprecedented Disruptive invention Technology innovation Brilliance Self-organizing work groups Shared vision R&D labs, creative services 7 Managing Change within Differing Cultures 2005, TCG Advisors LLC October 31, 2007

8 Collaboration Culture Core Motivation Value Discipline Differentiates by Leads from Organizes by Accountable to Preferred by Degenerates into Serving the customer Customer intimacy Application innovation Trustworthiness Process teams Customer satisfaction Marketing, customer service 8 Managing Change within Differing Cultures 2005, TCG Advisors LLC October 31, 2007 Club

9 Competence Culture Core Motivation Value Discipline Differentiates by Leads from Organizes by Accountable to Preferred by Degenerates into Beating the competition Product leadership Performance innovation Expertise Project teams Metrics and compensation Sales and engineering Clique 9 Managing Change within Differing Cultures 2005, TCG Advisors LLC October 31, 2007

10 Control Culture Core Motivation Value Discipline Differentiates by Leads from Organizes by Accountable to Preferred by Degenerates into Executing the plan Operational excellence Process innovation Authority Reporting hierarchies Business plan Finance, supply chain Caste 10 Managing Change within Differing Cultures 2005, TCG Advisors LLC October 31, 2007

11 Implications for Change Management Each Culture Responds to Different Levers Cultivation Collaboration Competence Control Motivation Focus Freedom Relationship Compensation Promotion Learning Style Trial & Error Subjective Feedback from Customers Objective Feedback from Metrics Quantitative Research Negotiation Focus What s right What s fair Rewards Benefits Decision Style Intuition Consensus Debate Deliberation 11 Managing Change within Differing Cultures 2005, TCG Advisors LLC October 31, 2007

12 Implications for Change Management The Challenge of Multiple Cultures Communicating across multiple cultures Focus on the shared value in adjacent cultures Find the balance between diagonal cultures When the company culture departmental culture CEO establishes the corporate culture Local executive establishes the local culture Local cultures adopt corporate norms at the interface between their organization and other organizations 12 Managing Change within Differing Cultures 2005, TCG Advisors LLC October 31, 2007

13 Implications for Change Management The Challenge of Multiple Cultures Communicating across multiple cultures Focus on the shared value in adjacent cultures Find the balance between diagonal cultures When the company culture departmental culture CEO establishes the corporate culture Local executive establishes the local culture Local cultures adopt corporate norms at the interface between their organization and other organizations 13 Managing Change within Differing Cultures 2005, TCG Advisors LLC October 31, 2007

14 A Negotiation Framework COMMUNICATION RELATIONSHIP INTERESTS OPTIONS If Yes CRITERIA If No COMMITMENT ALTERNATIVES Page 14

15 Negotiation: Role Play Gordy Davidson will be our Guest for the Role Play. He will lead the team representing Will Tomkins We will do a tag team role play the negotiation between four stakeholders: Will Tomkins, Nanogene CEO Paige Miller, potential executive (the class) Will s scientific cofounders Susan Stone, Venture Capitalist, potential investor Page 15