Think Inc.
A forum for Hawaii's
business community to discuss
current events and issues
Think Inc.
A forum for Hawaii's
business community to discuss
current events and issues
One size doesn't fit all | Do advisers need gray hair?
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Two friends, senior managers from different corporations in town, are having their weekly lunch together. One says, with obvious enthusiasm and excitement, "I can't wait to tell you about the incredible team-building session we had this last weekend!" The other responds with equally intense feelings, but his reflect chagrin and frustration. "We did too. And what a waste of time it was!"
Creating excellence in business teams
requires first knowing what sort of
team you are working withBy Irwin Rubin
There are many factors that can cause such vastly different reactions. But in my experience, what is central among them is the false belief that "one size fits all" when it comes to methods of team building. And this belief is common to both consultants and clients alike.
Let's look at sports as an analogy of what I mean. A baseball team is a group that requires minimal connectedness between its players in order to accomplish its task. At any one instant during a typical game, only two people are actively involved in helping the team succeed, such as the pitcher and the catcher, or the third baseman and the first baseman. A baseball team, therefore, is essentially made up of several smaller two-person components that interact with each other to carry the action forward. So in a "perfect game" of 27 strikeouts, it's conceivable that seven of the nine team members will be "standing around" watching and cheering on their star pitcher and catcher, without ever having to touch the ball themselves.
In contrast, a football team demonstrates moderate connectedness. During the huddle, the quarterback calls a certain play that will determine each of the other team members' specific jobs. If all the offensive players do their jobs perfectly, every play is "theoretically" designed to score a touchdown; and, "theoretically," if all the defensive players do their jobs perfectly, the offense will never gain a single yard. Consequently, some players, such as the blocking tackles, will occasionally get to score a touchdown, but only if someone else makes a mistake, like "dropping the ball."
At the other end of the spectrum, a basketball team's members are very connected. If the players "stand around" watching their star players, the team is guaranteed to lose. To win at basketball, every player has to be actively involved all the time. And unlike a football team that holds a huddle preceding most every play, a basketball coach calls for a huddle only if the situation is especially tense.
The point is, each of these teams requires a very different strategy to team building. In baseball, pairs of players, like pitchers and catchers, or in-fielders and out-fielders, can benefit from practicing together. In basketball, the entire team needs to practice together.
Effective organizational team building, too, must begin with an analysis of the nature of the work to be done -- the reason for the team in the first place -- and this will determine the style of building cohesiveness that's most appropriate. One size will not fit all.
Irwin Rubin is a Honolulu-based author president of Temenos Inc. His column appears monthly in the Honolulu Star-Bulletin. Reach him at temenos@lava.net.
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The availability of advisers and board directors is a key aspect of building successful high-tech companies. On nearly every board of directors and board of advisers, you will find "grey hairs," industry professionals who play some guiding role in the development and growth of the company. LETTER FROM SILICON VALLEY
Reducing chaos in
clinical development:
Do high-tech advisers
need gray hair?By Duane Kuroda
In Silicon Valley, one of the first questions entrepreneurs are asked when approaching lawyers, customers or potential investors is "Who are your advisers?" or "Who is on your board?" While the question seems simple, the answer can deeply impact the way people view the entrepreneur and the company.
First time entrepreneurs, or even repeat entrepreneurs who have not had a $50 million IPO or acquisition, are often considered high risk. After all, without having proven themselves able to start and grow a business, they are essentially gamblers with stakes in the millions of dollars. But, as with all risk, the rewards are tremendous. A successful company, like Hotmail, can return 50 times the investment for early investors. Until the entrepreneur has proven he can deliver those high returns, angel investors and venture capitalists are looking for reassurances in the form of experience from advisers and company directors.
Not any adviser will do. Strategic advisers are often critical to lending credibility and providing market advantage. Does the adviser have relevant industry experience? Does the adviser have contacts to help establish alpha or beta trials? Is the adviser rated in the top of his field? Does the adviser have "money" contacts into angel investors or venture capitalists? These are the basic questions to consider when building a team of advisers.
Once the entrepreneur has found the right advisers, it's still a battle to get them on board. Some people limit the number of companies they advise. Some people want pay for their advice, others demand stock options or equity positions in the company. Those limitations assume the potential adviser is interested in the company anyway. Thus the entrepreneur must locate, introduce the company, and convince the potential adviser that it's in their interest to advise the company.
Compensation for advisers may get complicated. If they invest, are they interested in a board seat? If they want pay, how much? If they want stock or stock options, how much, and how are they earned or vested? Negotiation skills become required, as does creative deal-making. It may sound like a lawyer is needed to draft the documentation, and indeed a lawyer should be consulted. The issuance, vesting and transactions of equity can become very ugly, very fast if not dealt with properly.
An angle to consider is that lawyers can also be advisers, providing negotiation, contract or experience in regard to business in the market. In addition, a lawyer with "money" contacts will also help attract funding. For example, networking start-ups in Silicon Valley often include advisers from Cisco, the networking giant, who may help with future trials or sales introductions. While there may be a conflict of interest, it's simply another facet to personal networking that helps business get done.
Proximity and access to advisers means having access to and the endorsement of respected individuals who can positively impact the direction of the company, the introduction of new product and the attraction of money. High-tech start-ups in Hawaii need to do their homework to find the appropriate locals who fit the adviser criteria, then push their personal networks for a chance to meet and convince them to advise their company. This is a proven and key step in the success of Silicon Valley, and essential for the high-tech business in Hawaii.
Duane Kuroda (Iolani, 1987) is co-founder and chief executive officer of Intrepic Technologies in San Jose, Calif. Reach him at duane@intrepic.com.
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