Creating Value with your HR Strategy - Entrepreneurship 101 (2013/2014)
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Transcript of Creating Value with your HR Strategy - Entrepreneurship 101 (2013/2014)
CREATING VALUE WITH YOUR HR STRAGEGY
Topics Building, sustaining and transferring value Individual and team competencies HR Resourcing – punching above your weight Finding the Best HR Health Check – the basics
Building Value
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
Value Formula
Value = Profit that’s sustainable and transferable
6
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 Business 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?
9 Team Capability?
Current Actual Value
Future Potential
Value
WILD CARD
Ability of team to realize potential
1. Are the individuals you have now the same you need in the future??
2. Can they deliver??
The challenge is moving from early stage to mature. When do companies “grow up”?
10 Patterns of Struggle #1 – business inflections
Time
Corporate Leadership and Operations Build, deliver & support
Design & development
Marketing & Sales
Hea
dcou
nt
Product definition roles
Bus
ines
s P
erfo
rman
ce
Hea
dcou
nt (m
ix/#
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
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
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
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
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
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
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
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
Cus
tomer
’s pe
rspec
tive
Mature Existing Product
Patterns of Struggle #3 - Organization Structure & Natural Business Forces 17
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
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
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
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
• 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 Depressors
Indicators of Workforce Weakness
22
• 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 Depressors
Indicators of Low Performing Team
23
MORPHING THE TEAM
24
Valu
atio
n
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
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
Formation
Technical Milestones
Proo
f of
Co
ncep
t
V.1
Prod
uct
V.1
GA
Prod
uct
V.2
Prod
uct
V.2
GA
Prod
uct
Financial Milestones
Seed
Fu
ndin
g
Seri
es A
Seri
es B
Stra
tegi
c Re
venu
e
+ M
argi
n Re
venu
e
Year
ly
Reve
nue
Gro
wth
Qua
rter
ly
Reve
nue
Gro
wth
Seri
es C
IPO
/M&
A
Customer Milestones
Com
pany
La
unch
Earl
y Cu
stom
er
BD
Cust
omer
Tr
ials
Stra
tegi
c Cu
stom
er
Sale
s
Repe
at
Sale
s
Repe
at
Sale
s
Repe
at
Sale
s
New
Ac
coun
ts
New
Ac
coun
ts
New
Ac
coun
ts
V.1
Sust
aini
ng
V.2
Sust
aini
ng
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?)
Workforce Planning – mix
Company Stage – business inflection points
Pre-revenue Early revenue Repeatable revenue Maturing Products Major Revenue Growth
27
28 Be 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:
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
PUNCHING ABOVE YOUR WEIGHT
30
Flexible resources used as needed for:
• Peak work • Special skills/expertise • Bench strength
Time
Hea
dcou
nt
SMART 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
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
FINDING THE BEST
33
Employer Value Proposition 34
Employer Value Proposition
Not everyone can be
35
BUT You Can Tell Your Story 36
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
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
39 Resourcing for what
Current Actual Value
Future Potential
Value
WILD CARD
Ability of team to realize potential
What problem are you solving with this hire and is it the right problem?
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
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
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
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
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
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
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
TAKING CARE OF BASICS
47
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
Thank You! Questions?