More small businesses are remaining small, and never get out of the “startup” mode of thinking, because they don’t grow in employee population. In reality, many businesses will remain small and nimble, and will become star business performers, so waiting for employee growth to “grow up” in business performance no longer applies. Small businesses are here to stay, so how can they reach top shelf business performance with small teams?
Margo Crawford will guide entrepreneurs through some basic aspects of hiring, while still considering limited human capital and driving business performance. The focus will be on achieving common business goals: building revenues, reducing costs, growing profits, building corporate value, sustaining this value and then transferring this value. Using these filters, Margo will talk about how HR impacts on all of these areas, from simple compliance and best practices to strategic thinking and organizational design and performance.
3. Topics
Building, sustaining and transferring value
Individual and team competencies
HR Resourcing – punching above your weight
Finding the Best
HR Health Check – the basics
5. Building…sustaining…transferring value
THE STAKEHOLDERS:
• Investors, shareholders, lenders, acquirers care about this principle
• Look for (and invest in) the team that has the ability to create,
build sustainable value
OWNERS/LEADERS:
• Need to use this filter in growing the company and building the
team
7. 7
The decision to start a business or invest
in a business – taking current potential
and realizing future potential.
Current
Actual
Value
Future
Potential
Value
WILD CARD
Ability of team
to realize
potential
8. 8Business Drivers
Addressable
Market
Positioning &
Differentiation
Brand
Technology
Barriers to
entry
Growth
Customer
Diversification
Market Share
Market (external) Factors Operational (internal) Factors
Company /
Reputation
Sales &
Marketing
Financial
Resources
Operations
Innovation
Legal
Human Resources Factors
Do you have team a that
can execute to deliver
future potential?
What are the resourcing
plans and assumptions?
What are the team &
individual competencies /
gaps?
Are the basics in place to
attract, retain, grow the
team?
Is the company legally
compliant & are risks
being mitigated? Are key
employees locked in?
Organization and team
dynamics – working for
or against progress?
10. 10Patterns of Struggle #1 – business inflections
Time
Corporate Leadership and Operations
Build, deliver & support
Design & development
Marketing & Sales
Headcount
Product definition roles
BusinessPerformance
Headcount(mix/#s)
Formation Early
Growth
Accelerated
Growth
Maturing
Growth
Next Stage
Growth
Business inflection points = challenges
• May require different skills & sometimes different people
• Adding bodies not always the answer
• Only gets more challenging not less
• Tendency to not change up the team can seriously impact ability to realize potential
= capability of team
11. Corporate Operations
Total Addressable
Market
Early Stage Focus:
NEW CUSTOMERS
Sales, Product Marketing Focus
• New products
• New features
• New customers
Product Strategy
Design & Development
Manufacturing & Test
Delivery & Support
Patterns of Struggle #2 – early to mature stages 11
12. Corporate Operations
Sales, Product Marketing Focus
• New products
• New features
• New customers
Product Strategy
Design & Development
Manufacturing & Test
Delivery & Support
New customer focus drives the
priorities - pressures the
organization to gravitate towards
the state of new customer wins.
Total Addressable
Market
Early Stage Focus:
NEW CUSTOMERS
Early Stage 12
13. Corporate Operations
Total Addressable
Market
Sales, Product Marketing Focus:
products, features & customers
Product Strategy
Design & Development
Delivery & Support
Manufacturing & Test
Existing Customers & Maturing
Products New Customers & Products Future Customers & Products
IMPACT:
Demands expand and resources thin or demands on personal time increases.
Priorities focus on problems and immediate needs and not growth and sustainability.
Result is organization with resources focused in wrong areas.
Maturing Company 13
14. Corporate Operations
Sales, Product Marketing Focus:
products, features & customers
Product Strategy
Design & Development
Delivery & Support
Manufacturing & Test
Business Pressures:
Expectations on the business increase and change – the “promise” now includes quality, support, scalability
More pressure to continue to innovate – new offerings to continue to lead
Need to manage full product life cycle – not just new products
More products, more customers = more complexity
Total Addressable
Market
Existing Customers & Maturing
Products New Customers & Products Future Customers & Products
Maturing Company 14
15. Corporate Operations
Total Addressable
Market
Sales, Product Marketing Focus:
products, features & customers
Product Strategy
Design & Development
Delivery & Support
Manufacturing & Test
Existing Customers & Maturing
Products New Customers & Products Future Customers & Products
Dominate tendencies:
• Priority continues to be winning new customers with existing products – other demands overlooked until a crisis
• When pressure increase – add bodies BUT not necessarily the right skills and resources
• Dull and difficult/pesky problems – annoyances to fix vs. structural issues to overcome
Start-up or
expanding
business culture/
focus
Shift from early stage to maturing stage 15
16. Corporate Operations
Sales, Product Marketing Focus:
products, features & customers
Product Strategy
Design & Development
Delivery & Support
Manufacturing & Test
Existing Customers & Maturing Products New Customers & Products Future Customers & Products
1. Must continually be looking for new opportunities with new customers and products
2. Need to support, manage and grow business with existing customers and mature products
3. Looking up and beyond now – where are the future opportunities, future markets, future types of
products or offerings.
4. The transfer of both customers and products from ‘new’ to ‘mature’ must be planned, clear with clear
hand off points.
5. Need to be able to transfer future opportunities into actual products and actual customers….so a
future view, but with a road map to how the company brings product to market and bring the market to
the products of the future.
2 4 1 5 3
Shift from early stage to maturing stage
Five organization elements to build value that is sustainable & transferable:
16
17. Sales
Product Design
New Product
Immediately?? Late??
Gravitates to
the newest,
the best, now.
Gravitates to
released design,
when it is ready.
Customer’s perspective
Customer’sperspective
Mature Existing Product
Patterns of Struggle #3 - Organization Structure & Natural Business Forces 17
18. Sales
Product Design
New Product
Mature Existing Product
Immediately?? Late??
Finance, Operations,
Delivery, Support
Gravitates toward the predictable
and precision (forecasts, schedule,
eliminate risk)
Organization Structure & Natural Business Forces 18
19. Sales
Product Design
New Product
Mature Existing Product
Immediately?? Late??
Finance, Operations,
Delivery, Support
Product Strategy
Needs to balance all of
the business elements
• Technology intelligence
• Customer intelligence
• Business intelligence
Organization Structure & Natural Business Forces 19
20. Sales
Product Design
New Product
Mature Existing Product
Immediately?? Late??
Finance, Operations,
Delivery, Support
Product Strategy
Needs to balance all of
the business elements
• Technology intelligence
• Customer intelligence
• Business intelligence
Organization Structure & Natural Business Forces 20
21. Sales
Product Design
New Product
Mature Existing Product
Immediately?? Late??
Finance, Operations,
Delivery, Support
Product Strategy
Needs to balance all of
the business elements
• Technology intelligence
• Customer intelligence
• Business intelligence
Organization Structure & Natural Business Forces 21
22. • Has there been any additions
or changes to your leadership
team?
• Does your organization
achieve relatively less with
more people?
• Pressure on margins despite
revenue growth
• No or exceptionally low
turnover OR exceptionally high
turnover
• Confidence around leadership
team
• Succession plans – single
points of failure
• Productivity & performance –
a team that can achieve
results (revenue/head)
• Cost of over loaded team
• Skills to achieve what the
business needs
Value DepressorsIndicators of Workforce
Weakness
22
23. • Expectations not articulated
• No communications around
corporate goals
• Connection of corporate goals
to individual goals and
behaviours
• Lack of approaches to reward
behaviours that drive value
• Missed milestones and key
deliverables
• Star performers not identified
and not locked into business
• Nothing in place to push
performance – possible low
caliber team
Value DepressorsIndicators of Low
Performing Team
23
25. Valuation
Time
Current Value
$50M
Future Value
$70M
$30M
$60M
$20M
$40M
$90M
$80M
$100M
How do you get the
team driving this
additional valuation?
A team that can drive value…
• Fill in the gaps – solve structural issues (balance immediate and long term)
• Attract and retain stars
• SMART resourcing
• Take care of the basics to sustain and retain the value that is created
25
26. 26
Can the current team execute to realize future potential?
AND
Through the transition from early stage to maturity?
Current
Actual
Value
Future
Potential
Value
WILD CARD
Ability of team
to realize
potential
28. 28Be honest and brutal in the assessment
Not at all
likely 50/50
Good
probability
Very
likely
Low
probability
Likelihood of achieving results with
current team.
MILESTONES
1 Milestone 1
2 Milestone 2
3 Milestone 3
1 Milestone 1
2 Milestone 2
3 Milestone 3
Not at all
likely 50/50
Good
probability
Very
likely
Low
probability
Likelihood of achieving results with a
modified team.
MILESTONES
Modified Team Recommendations:
29. Team Strength Snapshot
✔ ✗ ?
Lead
Support
Create
Sell
Build
Deliver
If you have at least 3 ✗ or ? in any
column, you have team weaknesses that you
should be addressing.
Corporate
Leadership
Internal
Operations
Product/
Service
Strategy
Marketing &
Sales
Design &
Develop
product or
offering
Deliver &
Support
Product or
Service
1. Do you have a leader for this
functional area?
2. Is this leader fully accountable for
delivering a known result this year?
3. Does this individual have the
capability to drive results to the next
level of growth you want for the
company?
4. Does this leader know what the
overall corporate goal is this year and
longer term?
5. Will they be rewarded for helping
to achieve this corporate goal?
29
31. Flexible resources used as
needed for:
• Peak work
• Special skills/expertise
• Bench strength
Time
HeadcountSMART WORKFORCE PLANNING
Build, deliver & support
Corporate Leadership and Operations
Design & development
Marketing & Sales
Product definition roles
Strategic
Core Team
Technology Platforms that support ‘just-in-time’ resourcing:
Contests
Platforms
Collaborators
Platforms
Complementors
Platforms
Crowd Labour
Markets
Platforms
31
32. SELL
• What is your core?
• How and when can you strategically resource?
• What is critical IP, knowledge, know-how that is fundamental to the product/service
offering?
PLAN &
DELIVER
CREATE &
INNOVATE
LEAD &
MANAGE THE
BUSINESS
Core Team
Flex Team
ASK 32
37. BUT You Can Tell Your Story
• LEADING INNOVATION
• PULLING WITH A TEAM TO
ACCOMPISH BIG THINGS
• SEE CREATION FROM START
TO FINISH
• BIG SUCCESS WITH SMALL
TEAMS
37
38. Speak to your stars….
Every chance you can:
• tell your story – job postings; blogging; web site; let them
know why they must join you (now or in the future)
• Compelling job postings – speak to your future stars
• DO NOT leave this in the hands of those who will simply
staff a role – this is critical to your business to create
value
38
40. Understand your perfect candidate!
Same principles as understanding your customer
SEGMENTATION
• Research the profile of the perfect candidate for each role
• What are the attributes, behaviours, career patterns and indicators of high
potential
• What are the relevant career satisfaction factors
This will inform key messages to these target candidates
AND channels to reach them
HOW - Strategic Sourcing vs. Recruitment 40
41. Understand your perfect candidate!
Same principles as understanding your customer
MESSAGING
• Based on what you know and what you discover – develop the messages and
brand that speaks to these passive candidates
• GOAL is to implant the idea of your company as a career choice to all passive
and active ideal candidates
• This messaging will be heard through branding, recruitment activities,
marketing programs, speaking notes, and on-line activities and promotions
HOW - Strategic Sourcing vs. Recruitment 41
42. Understand your perfect candidate!
Same principles as understanding your customer
CHANNELS
• Based on what you know and what you discover – develop strategic sourcing
programs that address a full spectrum of channels to REACH the active, near-
active and passive candidates
• Develop plans and programs with a view to:
find talent
nurture relationships
convert passive candidates to active candidates
close on perfect candidates
HOW - Strategic Sourcing vs. Recruitment 42
43. Understanding who you are targeting; what they care about and how to
reach them will result in:
1. Clarity on what a successful candidate looks like for your
organization
2. Creating a compelling job posting that will speak to the best
candidates for your company – giving higher likelihood of good
matches
3. Roll out a deliberate and effective recruitment campaign that will
reach the target candidates that are best for your organization
HOW - Strategic Sourcing vs. Recruitment 43
44. Reach is Key
DIRECT
SOURCING
Job
Boards
User
Groups
Schools
Relevant
Associa@ons
Networking
Events
Awards
of
Significance
• Post
ac@ve
(hiring
within
next
2-‐3
months)
opportuni@es
on
target
job
boards
• Post
ac@ve
opportuni@es
in
UG
job
sites
that
exist;
broadcast
opportunity
in
UG.
• Note
do
not
overuse
this
-‐
only
when
opportuni@es
are
real.
• Post
ac@ve
opportuni@es
in
university
job
boards
-‐
target
schools
with
relevant
programs.
• Connect
with
someone
from
schools
if
possible
to
properly
promote
opportunity
• Post
ac@ve
opportuni@es
in
relevant
associa@on
sites;
• Make
contact
with
associa@on
to
see
if
there
is
a
way
to
tap
into
their
community.
• Only
if
networking
event
has
known
recruitment
focus
-‐
consider
par@cipa@ng
with
ac@ve
opportuni@es.
• Explore
awards
related
to
employers
of
choice.
• Coordinate
any
promo@on
of
these
with
direct
recrui@ng
opportuni@es
44
45. Reach is Key
INDIRECT
SOURCING
Job
Boards
User
Groups
Schools
Relevant
Associa@ons
Networking
Events
Awards
of
Significance
• Examine
boards
for
opportunity
to
create
banner
ads
and
other
promo@onal
opportuni@es
• Have
team
join
relevant
groups;
par@cipate
in
group
discussions
to
build
presence
• When
opportuni@es
become
ac@ve
can
send
message
out
to
group.
• Networking
with
schools,
alumni,
etc.
to
raise
awareness
of
Prolucid.
• Team
to
join
relevant
associa@ons
that
have
high
value
in
terms
of
reaching
target
audience.
• Will
want
'speaking
notes
around
who
we
are
always
looking
for'
• Team
to
aWend
'high
value'
networking
events
that
promote
Company;
speaking
opportuni@es
to
be
explored.
• Want
speaking
notes
on
resources
we
are
always
looking
for
• Explore
awards
that
posi@on
company
in
a
highly
valued
technical,
sector,
work
environment.
45
46. Tight Execution is Key
Focus in on a tight plan in the
context of a bigger picture
Effective Recruitment
• Know what you are looking for and when
• Think of a highly targeted approach
• Process from start to ‘in-seat’ will generally take no less than six weeks
WITH all stars aligning – plan for 2 months or more if highly specialize role
• Think before you act – a little preparation will make the effort much more
productive
Organizational
Milestones
CEO
R&D
Lead
CFO
(P/T?)
PLM
Sr. R&D
Marcomms
Int./Jr.
R&D
BD/Sales
QA
SE’s
Sales
(Hunter)
Sales
(Farmer)
CTO
Sales
Support
Customer
Support
HR
(P/T?)
VP
Sales
VP
Marketing
Admin.
Support
CFO
(F/T)
Accountant COO?
HR
(F/T?)
46
48. Taking care of the basics…
• Protect IP & assets
• Retain or lock in key employees
• Appropriate liabilities and obligations; mitigate risks
Contracts
Compensation
Sales
Incentives
Policies
Workforce
Planning &
Recruitment
Performance
Management
• Appropriate compensation for market
• Motivate and Reward performance
• Sales compensation plans that drive quota attainment
• Models that make financial sense and are in line with market
• Terms that create appropriate obligations
• Policies that ensure compliance with laws
• Practices that align with business values, motivate the right behaviours,
and ensure sustainable business operations
• Exceptional recruitment process and selection practices – resourceful
and diligent sourcing; hire for best fit
• Workforce plans that align with business goals
• Effective feedback tools; programs that build goals that align with
business goals
The basics protect the value that has been created
and helps drive additional performance
48