The document discusses key aspects of company formation, including vision, culture, and people. It emphasizes that an idea is worth little without execution, and that building an enduring company requires establishing a strong vision, developing the right culture, and hiring the right people. It provides guidance on defining a company's vision and mission, cultivating its culture through shared values and communication practices, and hiring individuals who are the right cultural fit with the right attitudes, aptitudes, and abilities to execute on the company's vision.
Harvard Innovation Lab Guide to Building an Enduring Startup
1. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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STARTUP
SECRETS
MICHAEL J SKOK
An insider’s guide to unfair competitive advantage
Hi Harvard innovation lab
Company Formation:
Building an Enduring Company
twitter: @mjskok mjskok.com
North Bridge Venture Partners
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Company Formation
• Agenda:
“Foundations for Building an Enduring
Company”
– Vision
– Culture
– People
• Hiring - our deeper dive for this class …
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Why?
Many, many reasons. Simplified:
• Ideas are worth little to nothing without…
– People to execute
– Culture to select the right people & empower them
– Vision to attract, retain & unify all stakeholders
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Value
Prop
Building an enduring company:
Startup
5. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Value
Prop
Peopl
e
Building an enduring company:
Startup
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Value
Prop
Peopl
e
Executio
n
Building an enduring company:
Startup
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Vision
Value
Prop
Peopl
e
Executio
n
Building an enduring company:
Enduring
Compan
y
Startup
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Listen
Learn
Lead
Iterate
Pivot
Vision
Value
Prop
Peopl
e
Executio
n
Building an enduring company:
Takes more than LLLIP service
Enduring
Compan
y
Startup
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Vision
Value
Prop
Peopl
e
Executio
n
Building an enduring company:
Roadmap…
Cultural Consistency Enduring
Compan
y
Startup
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Simplification
Value proposition
Vision
People / Team
Culture
- starting point
- to aim for
- basis for execution
- underlying enabler
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Vision
Value
Prop
Peopl
e
Executio
n
Agenda: Vision / Mission
Cultural Consistency Enduring
Compan
y
Startup
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Vision
• How the market will evolve?
• How will you will lead it?
• What is your roadmap?
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Mission
When your vision is fulfilled…
• Inspiring statement of intent
• Motivational driver to aspire to
“to organize the world's information and make it
universally accessible and useful”
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Roadmap
• Bridges your Value Prop and Vision / Mission
• Describe the road ahead and how you
imagine your journey
• What are the tangible steps?
• What are key Milestones along the way?
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Enduring
Compan
y
Agenda: Culture
Vision
Value
Prop
Peopl
e
Executio
n
Cultural ConsistencyStartup
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Why is culture important?
• Hundreds of decisions below the radar
• Dissipation vs. concentration of energy…
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Learn from the best?
FORTUNE Tech top 5
– Google
– SAS Institute
– NetApp
– Zappos
– DreamWorks
Impact
of
Culture
?
18. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Learn from the best?
FORTUNE Tech top 5
– Google
– SAS Institute
– NetApp
– Zappos
– DreamWorks
Culture
Impact
19. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Learn from the best?
FORTUNE Tech top 5
– Google
– SAS Institute
– NetApp
– Zappos
– DreamWorks
Culture
Impact
100 Best Company List
consistently outperform
major stock indices by
300%
20. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Culture
• Beliefs
• Values
• Guiding Principles
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Culture: Guiding Principles
• Example questions for you to ponder your
culture:
– Does the customer come first or your people?
– Do you judge yourself by results or effort?
– Management - is it a role or a hierarchy?
– How do you solve problems?
22. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Commyounikation
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How do you communicate?
• Formal / informal, cadence?
– Water cooler, Standup Scrums, Town Hall
• Plans, Progress, Results
– Do you have a Common Language eg
• VMGOSPA
• Acquia – GDP
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What do you celebrate & reward?
• Sales !!
• Marketing !
• Engineering
• Services ?
• Admin ??
• And HOW?
– Management and / or peer?
– Public or private
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Culture: Values
• Examples:
– Empowerment, enablement
– Proactive honesty and openness
– Respect
– Integrity
… what are YOURS – authentically?
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Startup Secret: Culture
• Comes from YOU
• Comes from the top
• Is modeled
CultureStartup Enduring
Compan
y
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Startup Secret: Culture
• Comes from YOU
• Comes from the top
• Is modeled
• Is valued by consistency
Cultural ConsistencyStartup Enduring
Compan
y
28. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Can culture have a physical
manifestation?
• Yes!
– Office layout
• (open plan vs. cubes vs. offices)
– Founders wall
– Mascots
– Etc
29.
30.
31.
32. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Acquia
Acquia Ranks as the No. 1 Software
Vendor on the 2012 Inc. 500
“One of the hottest companies
on the planet” - VentureBeat
2012 “Best Places to Work” –
Boston Business Journal
33. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Acquia’s culture…
http://www.youtube.com/watch?v=XZm7Q71F83U
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Culture
• Define it early, authentically, thoughtfully so it
can endure
– Try to find things to reinforce it, rather than change
it
• Should be consistent
• Even when you’re
– Pivoting your business
– Making acquisitions
• It’s a good test for whether the acquisition is a fit…
35. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Vision
Value
Prop
Peopl
e
Executio
n
Agenda: People
Cultural Consistency Enduring
Compan
y
Startup
36. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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People
• Specifying
• Finding
• Hiring (our focus in this workshop)
• Developing, coaching, mentoring
• Retraining
… when things don’t work out ?
37. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Hiring
It’s all in the listening…
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Hiring
• EKS: Experience, Knowledge, Skills
• IQ: Intelligence Quotient
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Startup Secret: Hire for CQ
• EKS: Experience, Knowledge, Skills
• IQ: Intelligence Quotient
• CQ: Cultural Quality
– FIT with your values etc
“the fit between personalities was so much more
important than just finding people who were very
good” Dick Costolo, CEO Twitter
Wasserman, Noam (2012-03-25). The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup
(Kauffman Foundation Series on Innovation and Entrepreneurship) (p. 216). Princeton University Press
40. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Startup Secret: Hire for CQ do QC
• EKS: Experience, Knowledge, Skills
• IQ: Intelligence Quotient
• CQ: Cultural Quality
– FIT with your values etc
• QC: Quality Control
– Is each hire Additive or Dilutive?
– Is each hire Multiplying or Dividing culture?
41. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Hiring A+ players
• What does that really mean?
• How can you apply it in practice?
42. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Startup Secret: Hire 3As
• Attitude
• Aptitude
• Ability
Attitude
Aptitude
Ability
43. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Startup Secret: Hire 3As, 3+s
+ Aware (self)
+ Authentic
+ Athlete
Attitude
Aptitude
Ability
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Hiring:
Ultimately, assess 3 key things …
Can they be successful at the
job?
Will they really love the job?
Will they fit and reinforce?
EKS IQ
CQ
Attitude
Aptitude
Ability
45. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Hiring:
3 key things lead to the “Golden Triangle”
Can they be successful at the
job?
Will they really love the job?
Will they fit and reinforce?
EKS IQ
CQ
Attitude
Aptitude
Ability
46. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Hiring: The tools
• EKS
– Resume
• Interviews
• IQ
– Proof, eg
• Problem solving
– Eg Engineers – code
• CQ
– Interactions, observation
• Trust the process
EKS IQ
CQ
Attitude
Aptitude
Ability
REALReferences
47. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Example Interview Questions
• EKS
– What is the most relevant experience, knowledge
or skill you bring to this job?
• IQ
– What is your favorite example of a problem you’ve
solved?
– How did you solve it?
• CQ
– What have you most enjoyed in your previous
jobs?
– What do you value most?
48. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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My first interview question?
What are you passionate about?
49. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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My first interview question?
What are you passionate about?
– sometimes my ONLY question!
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Summary – Hiring
• Hire for CQ: Cultural Quality of fit
– Do QC: Quality Control for additive vs. dilutive
• Look for 3As: Attitude, Aptitude, Ability
+++ Aware, Authentic, Athlete
• Golden Triangle
– All the above: confirm they love it,
will be successful and fit
51. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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2 practical startup hiring tips
Because I hear these questions all the
time…
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Tip 1: hiring known quantities…
Just hire people you know & have worked well with
in past?
YES
– proven teaming, fit
NO
– every situation is different
» “vs. it worked like this in the past!”
– diversity of background can be good
» “think different”
53. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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53
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Tip 1: hiring known quantities…
Just hire people you know & have worked well with
in past?
YES
– proven teaming, fit
NO
– every situation is different
» “vs. it worked like this in the past!”
– diversity of background can be good
» “think different”
“startups that relied relatively heavily on the founders’
personal networks received valuations that were
37% higher than those received by startups that
barely tapped the founders’ networks”
Wasserman
54. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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54
#innovationlab @mjskok #startupsecrets www.mjskok.com
Tip 1: hiring known quantities…
Just hire people you know & have worked well with
in past?
YES
– proven teaming, fit
NO
– every situation is different
» “vs. it worked like this in the past!”
– diversity of background can be good
» “think different”
55. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Tip 2: balance youth and experience
Youth or Experience? YES!
Youth what’s possible?
+
Experience what to consider
=
Success balance
56. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Tip 2: balance youth and experience
Youth or Experience? YES!
Youth what’s possible?
+
Experience what to consider
=
Success balance
57. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Tip 2: balance youth and experience
Youth or Experience? YES!
Youth what’s possible?
+
Experience what to consider
=
Success balance
58. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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58
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Tip 2: balance youth and experience
Youth or Experience? YES!
Youth what’s possible?
+
Experience what to consider
=
Success balance
59. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Acquia: Hiring
• Create great reasons to work at Acquia
• Internships & Acquia U
• Fun environment & great benefits
60. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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• Wherever possible, and particularly early on,
choose ALL your stakeholders carefully
– Employees
– Customers
– Partners
– Investors
Startup Secret:
Choose ALL your stakeholders
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Team …
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Teaming
• Self awareness:
– Strengths
– Weaknesses = areas to get Team support
• Openness
• Willingness to learn
• Give & Receive Constructive feedback
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Acquia:
• Foundation to build amazing teams:
– Emphasis on cultural fit
– Diverse experiences & skills
– Competitive by nature
• Structuring Teams to maximize output:
– Sprints
– GDPs (cross-functional)
64. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Startup Secret: Teaming
“Building a great company is not a
sprint,
it is a marathon.
65. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Startup Secret: Enduring Teams…
“Building an enduring company is not a sprint,
it is a marathon.
Work as a team and you can win it in stages,
as a relay”
66. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Learn from the best?
FORTUNE Tech top 5
Google
SAS Institute
NetApp
Zappos
DreamWorks
67. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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67
#innovationlab @mjskok #startupsecrets www.mjskok.com
Learn from the best?
FORTUNE Tech top 5
Google
SAS Institute
NetApp
Zappos
DreamWorks
100 Best Company
List consistently
50%
Less turnover
100 Best Company
List consistently
50%
Less Turnover
68. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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Vision
Value
Prop
Peopl
e
Executio
n
Summary:
Building an Enduring Company – it’s all possible
Cultural Consistency Enduring
Compan
y
Startup
Listen
Learn
Lead
Iterate
Pivot
69. Harvard innovation lab : Michael J Skok : Startup Secrets : Company Formation
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START UP
SECRETS
MICHAEL J SKOK
An insider’s guide to unfair competitive advantage
Hi Harvard innovation lab
Company Formation
twitter: @mjskok mjskok.com
North Bridge Venture Partners
Notas del editor
http://youtu.be/XZm7Q71F83U?hd=1
Hire the right person not the right now person!
startups that relied relatively heavily on the founders’ personal networks received valuations that were 37% higher than those received by startups that barely tapped the founders’ networks. 6Wasserman, Noam (2012-03-25). The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup (Kauffman Foundation Series on Innovation and Entrepreneurship) (p. 213). Princeton University Press. Kindle Edition.
cofounders with complementary skills but similar value systems can form a more effective whole.Wasserman, Noam (2012-03-25). The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup (Kauffman Foundation Series on Innovation and Entrepreneurship) (pp. 98-99). Princeton University Press. Kindle Edition.