Managing the Venture

Resource optimization,
identifying new opportunities
 Organizational Structure
 Functional
 By Product Line
 By Customer
 International

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 People Issues
- Compensation Packages
– Salary
– Vacation, sick leave, holidays, etc.
– Insurance
– Profit-sharing
– Bonuses & commissions
– Stock option plan

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 Getting People

 Recruiting firm
– Head hunter
– Search firm
 Competition
 Firms laying people off
 Advertising
 School placement
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 Getting RID of People
- Poor performer
– Cut the cord quickly
– About warnings, probation, etc.
– Termination interview
– Compensation
– Legal issues
Cutbacks and Layoffs

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 Running the Company
 Importance of meetings

 Targets
– Sets the stage for the future
– Lead by example

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 Running the Company

 Entrepreneur vs. Manager

– Strategy
– Planning
– Motivating
– Leading
– Selling

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 Running the Company

 Entrepreneur vs. Manager

– Tracking budgets
– Purchasing
– Supervising production
– Refereeing disputes
– Developing marketing pieces

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 Running the Company

 Cash is King
– Managing working capital
– Predicting short term cash
– Letting cash make decisions for you

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 Running the Company

 Maintain Investor Rapport

– Board of Directors meetings

– Monthly letters
– Quarterly results (on time)
– Highlight successes

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 Running the Company
 Credibility

– Your word is all you have

– Do the right thing for customers
– Communicate REAL dates
– Admit mistakes

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 Negotiations
 Not a War
 About threats and hard line tactics
– Agreement under duress will not holdup
–Can’t have a WINNER and a LOSER
Know your opposition
– Background, style, personality
– Fact finding meeting

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 Negotiations Tactics
 Forbearance

• Hold off answering

• Recess
• Cooling off period

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 Negotiations Tactics

 Apparent Withdrawal
• Leave the room
• Threat of withdrawal

 Reversal
• Upside & downside
• Increase demands
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 Negotiations Tactics
 Time Limits

 Feinting

• Yield reluctantly
• Make opposition work for it
• Crossroads
• Unreasonable for unreasonable
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 Negotiations Tactics
 Blanketing
• Inundation with data
• Questions

 Randomizing
• Flip a coin
• Split the difference
• Used for deadlocks
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 Negotiations Tactics
 Slicing
• Small concessions a slice at a time

 Shifting levels
• Go over negotiators head
• Bump up to higher level

 Shift time horizon

• Negotiate for greater or lesser period
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 Effective Teams
 Identify Needs

 Talk with the company early and clearly by

phone or in person if possible…

 Build relationship with key

intermediaries…..

• listen carefully to their stated priorities

• specific tasks will probably be clear
• general needs may be more vague
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 How Good Teams Go Bad
 Free Riding:
• what if one person does not pull his/her weight?
 Try to understand what is the problem: overwork,
motivation, personal issues? How can these be
addressed?
 Most problems start small and quickly snowball. Talk
openly and clearly about who is doing how much
work. Keep (rough) track of hours worked or effort?
 Be clear with each other on when you have more
time to prepare during the fall. Write down
deliverables with dates.
 On the ground, you are all in it together. You have
to trust your team. Build trust before you go: help
each other with something.

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 How Good Teams Go Bad
 Clashes within the team

• Agree on a mechanism for resolving

disputes, by voting or require
unanimous agreement

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 How Good Teams Go Bad
 Breakdown of communication with the
company
• establishing a personal relationship early is
important
• Define clearly how much time they will spend
with you; who exactly will you interface with?
• Try to have a clear channel to the CEO; watch
out for internal politics
• Keep the intermediaries fully informed; manage
these relationships; have them talk with the
company often
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 How Good Teams Go Bad
 Pride before the fall
• We know all this
• A failure to listen to the company or to others
• What is he saying?
• Lack of respect
• What you’re saying is obviously wrong
• Breakdown of communication
• Did he just say what you think he said? Watch
for danger signs in yourself and others

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 Communication
 Formal channels
 Charters
 Newsletters
 Company meetings and informal
events
 Needs conscious effort: company
culture

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