1. Recruitment for Early Stage Technology Businesses
Electrochem 2010: Electrochemistry and Sustainability

2. Electrochem 2010: Electrochemistry and Sustainability
Introduction
Firstly I would like to thank the Royal Society for the privilege of being able to speak to you on this
critically important subject. My name is Frank Suhadolnik and I am the founder of The Praesumo
Partnership.
The Praesumo Partnership specialises in the recruitment of senior executives into early stage ventures.
We work with a large number of private equity institutions, some of our more recent projects have been
with: MTI Partners, Enterprise Ventures, Imperial Innovations, Foresight Group.
Outside the VC and PE environment we have recently recruited the following senior positions:
• Arvia Technology, Chief Executive Chairman
• CMR Fuel Cells – Chief Technology Officer
• Diverse Energy – Managing Director
• Inertius – Executive Chairman
Whilst recruitment at its simplest can just be about filling vacancies, our work goes well beyond this remit.
It requires a deep understanding of the dynamics of a business which moves from inception, through
commercialisation to maturity and I would like to explore the issues involved in this transition in a little
more detail.
Issues Particular to Early Stage Businesses
Early Stage Businesses are particularly challenging for the very reason that they are evolving quickly and
the skills they require change rapidly. There may not be a clear, simple roadmap. There will be changes
and challenges that are unforeseen.
It may not always be evident to those involved just what future skills are required, the roles to be created
are not simple replacements. It is a high-challenge environment; this is not about maintaining the status
quo!
In a mature business a bad hire can be an irritation, in an Early Stage Business it can prove fatal
Our Focus
At the Praesumo Partnership, our focus is upon the management challenges arising from this
environment. This is well illustrated by the following table which addresses the issue of Leadership and
Management through this evolution:
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3. Electrochem 2010: Electrochemistry and Sustainability
Leadership vs. Management
Or Inspiration vs. Perspiration! Although in reality it is rarely one or the other, it is both that are required.
Scalable Start-up Transition Large Company
(INCEPTION) (COMMERCIALISATION) (MATURITY)
Manager of Plans, goals,
Contribution Superstar Leader
process and personnel
Time
24/7 As Needed As Needed
Commitment
Planning Opportunistic Mission and Goal Driven Process and Goal Driven
Hates and As Needed and Driven by
Process Implements and Uses
Eliminates Mission
Management Autocratic, Star
Distributed to Departments Can be bureaucratic
Style System
Span of Mission Driven,
Hands On Distributed
Control Synchronised
High, Passionate,
Focus Mission Execution
Visionary
Uncertainty/
Order from Chaos Focuses on fast response Focus on repeatability
Chaos
Inception
Our Inception Executive is a superstar, working 24/7 in the business, involved in everything from
business development & fundraising to technology development. They are hands on, opportunistic and
will provide the necessary impetus to bring order from chaos. The business will change direction
frequently and seize on every opportunity to create revenue and value. Projects are more often than not
one-off’s and largely about proving that the technology has a place in the market.
Commercialisation
During the process of commercialisation, the business is starting to grow in size. There is now some
functional and operational management in the business, maybe in engineering or in business
development. They’re still some way from profit there are now early revenues and a defined market,
mission and plan.
During this phase the CEO needs to be a leader who is goal focused. They need to be delegating
responsibility and delivering projects. It’s not necessarily the case that this will be a different executive,
but it is important that whoever is in the role is displaying different behaviours.
Often what we see early in this transition phase is that the board and investors take the decision to
appoint Non-Executive Directors or a strong Executive Chairman to provide support, stability and
reporting lines for the incumbent CEO in order to achieve these changes in behaviour, more often than
not prior to a significant investment round.
Maturity
When does the business enter this phase and when do you start preparing for it? At some point during
transition there is usually a transformational event such as the raising of a significant funding round or a
contract award that will tip the business into profit.
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4. Electrochem 2010: Electrochemistry and Sustainability
It is during this phase that the characteristics required by the executives leading the business are so
different from those of the characteristics of the Inception CEO that a change in leadership may be
inevitable.
An Example
Let me take the example of a business we have recently worked with: A University Technology Spin-Out
which required a new CEO
The Board consisted of the following stakeholders:
• Early stage investors
• Technology inventors
• University technology transfer advisors
Each stakeholder had a slightly different view:
• One insisted that the incumbent had raised at least £1m in VC funding
• One insisted that they must have a Utilities background
• One insisted that they must have an MSc in Chemistry and have led a technology programme
• In short, a pretty tall order!
• It doesn’t mean that they’re not there, but even if they are they may have been far from the right fit.
What was our role at this point?
• To become a partner through a deep understanding of the business strategy, to understand the
drivers, personality and personal goals of the management team
• Then to frame the requirement in the context of all the above and our understanding of the
requirements of organisational change.
• Using our experience we advised, consolidated and frame this requirement
• One key element in this process that hadn’t been given the significance it should have by the
stakeholders was exactly how this technology was to be commercialised – through a manufactured
product in a given market or through licencing the technology across a whole range of markets. After
exploring this key element more it became apparent that the solution lay not in a market specialist but
in a candidate with the experience of technology transfer and intellectual property management.
• At this point we were able to define the role, define the search criteria and delivered the right
candidate.
My point is this:
Recruitment must not be an afterthought or an ad hoc process. An Early Start
Business requires a recruitment partner to be there throughout the entire
lifecycle of a business.
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5. Electrochem 2010: Electrochemistry and Sustainability
About the Speaker
Speech given by Frank Suhadolnik, Founding Partner of The Praesumo Partnership.
Frank has been working with technology companies since 2000 and has
successfully placed many executive and non-executive appointments
within early stage businesses, Venture Capital and Private Equity backed
portfolio companies, blue-chip corporations and Plc’s.
Frank also has extensive knowledge of the energy and technology
markets and has recruited for businesses involved in high performance
materials, alternative energy, low carbon technology, oil & gas, life-
sciences and information technology.
The Praesumo Partnership
The Praesumo Partnership is a UK based executive search and selection business conducting searches,
both nationally and internationally, on behalf of clients in the Energy, Infrastructure, Engineering and
Private Equity Markets.
www.praesumo.co.uk
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