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13 0820 Session 1 Management Team

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  • Progressive de-risking of company from concept to a venture that will achieve investment and/or sustainable revenueTraining materials, activities & workshops are integrated with these 10 steps Product-Market Fit helps each company ensure that they have identified the correct market for their product(s)/service(s) and are ready to make appropriate adjustments. 2) Technology Validation ensures that their product(s)/service(s) will credibly meet the requirements of investors and customers. 3) Business Model covers all key aspects of who and how and where money will be made, and how the product will be delivered. 4) Markets and Getting to Them covers the key, crucial steps needed to get a new product into the market (an enhanced version of ‘Go To Market Strategy’). 5) Finances & Funding focuses on producing credible financial projections. 6) Legal provides an introduction to intellectual property protection and the corporate structure required to minimize risk and provide the legal underpinnings for success (important steps often overlooked by entrepreneurs). 7) Execution and Team to Execute introduces the importance of building a strong, relevant team with the specific skills needed to hit the major milestones needed as the startup grows. 8) Sustainability introduces the importance of business practices that will improve the company’s profitability while reducing its environmental impact. 9) Presentation works on the content and skills for excellent investor/customer presentations. 10) Assessment & Review guides each entrepreneur through the importance of careful review, and provides the platform for review and refinement of the programs themselves.Physical and virtual business clinics are one-on-one sessions for each participating startup with experts from sectors such as law, marketing, design, manufacturing and finance.
  • Welcome to the Cleantech Open Management Team Webinar.
  • Advise of the Copyright Notice.(Effective as of July 10, 2012 and applicable thereafter)
  • Today, we will speak about the core elements of a execution and core team.Our objectives include the following:Understanding staffing approaches and management profiles, including identifying and filling gapsDeveloping a plan, including key elements such as the leadership team, start-up team, and human resource considerations but all in context of what needs to get done within 18 months.Business Model Canvas items such as Key Activities should help identify what needs to be filled first.This leads to our agenda.
  • Our agenda for today’s topics in this webinar focus on the following: Value Creation by leveraging resources in context of Jobs to be done.- Management Team in context of People i.e. Using Skills / Experiences and Gap analyses to fill needs- Management Team in context of Process i.e. Critical elements of the staffing process - Management Team in Context of Solutions i.e. Elements in the Solutions- Summary and QuestionsAt the conclusion of the webinar, you should have a more solid understanding of these elements and how they fit with developing your business enterprise.
  • We move on to Webinar no 7 from where we left off last week on Legal Environment, Risks and Issues Webinar. You shared with us what you liked about the Webinars and how we can make them more helpful. Today’s Webinar is related to Team and management in context of Value Creation by leveraging all resources around the world. The goal is to not only link the Webinar content to the Worksheets that you are required to complete and Judging Criteria.
  • Stay focused on leveraging resources in context of Value Creation as part of building the business.Keys to Success with start up business- People - Key Activities and Jobs to be done- Processes – e-learning- Products – Solutions i.e. Products and related Information1) People / Skills and Experience - One of the ways to capture value is identifying key short term activities and Jobs to be done. Example….18 Month Plan with Key Activities and People who can get them done. 2) Processes (Hard and Soft) – Leveraging e-learning tools be they technical or business. Example…….. Developing and Documentation of Behavioral Analytics in context of HVAC Management by Eco-Factor / Lucid Design Group.3) Products / Solutions – Solution Centric mind set for all three stages of the company i.e. Front Stage, Back Stage and Business Performance Stage. Example….Lucid Design Group not only supplying HVAC Management Software but informational services on pay as you go basis.
  • The Canvas consists of nine building blocks, which are described from Right to Left (Front Stage and Back Stage) and then at the bottom Front Stage……..On the Right are four building blocks that form what can be called a customer view. These blocks include Customer Segments (CS), Value Propositions (VP), Customer Relationships (CR), and Channels (CH). There are specific jobs to be done in acquiring customers by identifying channels and leveraging relationships.On the Left are three building blocks that form what can be called the operations view. These blocks are Key Activities (KA), Key Resources (KR), and Key Partnerships (KP). These three should identify skills needed and what one may already have in terms of co-founders.At the bottom of the Canvas are two blocks that make up the economics view: Cost Structure (C$) and Revenue Streams (R$). These are impacted by type of skills that one needs and the supply and demand of those skills in the market place.In the following discussion we will discuss in more detail the jobs to be done and what one needs in terms getting them done.Co-Founders, Board Members, Advisors, Contractors and Employees –
  • If one understands one’s business model, key activities and resource needs a little better, one can work on filling those needs. Building a team is not just about hiring people from certain schools and or companies. It’s about when and if you will hire someone to fulfill a need.You need the right people, in the right job, at the right place, and at the right time. It takes people to do things, but labor costs are likely a significant portion of overall company costs. A core founding team is key to building a great business.
  • What might be some of the experience / skills the team is missing, and where are the gaps? This is directly related to your 18-month milestones. Are those missing skills related to knowledge or experience, maybe professional or related to company specifics, such as the value proposition, distribution channels, or customer relationships? Are they technical skills possibly related to information systems or technology? Are they marketing skills or sales deficiencies? Are the skills related to finance or business planning?Your staff must understand your company’s business model and the three stages of the plan. Do they know the Jobs to be done?Staff also need to understand your company’s value proposition. Can you be sure that they understand the full scope of benefits that customers experience when they acquire your product or service? Similarly, staff need to understand how products or services are distributed, and then marketed and sold i.e. Go to Market Strategy.
  • Think about job number one: Satisfying the customer need and pain points. What are the key elements? How will you deliver? If you are selling a product, you might have to design it, sell it, make it, etc.
  • Ability to deal at all three levels i.e. 100k, 50k and 10k foot level.Each of these identifies a process. Your employees, your partners, and your customers will make these processes happen. Identify the processes needed to run your company and satisfy customer needs. This will enable you to determine the needed skillsets to manage those processes.
  • Core Values of the Business and Team – Triple Bottom LineNow, let’s take a look at your team. Can they cover these needs?
  • Does your team possess the knowledge and experience they need to execute their jobs in accordance with your business plan?Senior management needs to assess the team to understand knowledge and skill requirements versus availability.Knowledge could take the form of educational background, training, and professional development. Are there professional areas where you are short-staffed?Staff may have knowledge in key areas, but they may lack experience. For example, understanding the distribution channels and customer relationships is great, but at least some of your staff likely need experience in understanding connections between the two, as well as how to spot problems and generate solutions. Don’t worry if you don’t have it all.
  • – Big Data Analytics versus Database Management– Rapid Prototyping using 3 D design– Research Scientist, Epitaxial Growth Hands on Management in Internal and External Key ActivitiesEveryone in the company will likely need rudimentary computer skills, but what about your technical specialists? They may also need specialized skills related to schematics, drawings, product design, and so on. Product design is a specialized skill set of its own. These creative yet practical staff can help ensure that your value propositions efficiently and effectively meet customer needs. Ultimately, your firm may also need scientists conducting research to stay at the cutting edge of technology and working to improve value propositions. Engineers may be needed to design equipment or processes needed to manufacture. Manufacturing is another skill set you may need. Check with state authorities regarding any special licensure requirements, especially for engineers.
  • The same staff involved in developing, studying, and manufacturing your product probably has a different skill set than the individuals that can best help you succeed by understanding the customer segments that will be attracted to your product or services. These marketing professionals can then develop marketing plans for the various customer segments. This is a specialized skill set requiring connections in the industry and experience. As markets develop, sales need to be executed that seal the deal. Your company should plan for how to accomplish this, potentially with a sales force. How much training and experience will they need? Depending on how novel your product is, there may not be much direct experience with marketing or selling it, so these resources may be scarce.
  • Business Management – Efficiency and Effectiveness i.e. Track flows of Information, Time and Money Financing – Develop Financial ModelsReporting – Managing other People’s money.Another needed skill set will be in the areas of financial and business planning. Do you have staff with the knowledge and experience to develop a strategic plan and implement it? Key elements to consider are how the mission, vision, and goals for the company will be established along with key performance indicators. How will those indicators be measured and reported on, and how frequently? How much experience does your team have at the right level for the essentials of planning, executing, measuring results, analyzing results, and then developing and executing plans to enhance performance?Similarly, the business will need access to financial planning skills. This will be necessary to secure capital, develop profit and loss statements, and manage cash flow.Last of all, these items will be needed for investors to demonstrate proper stewardship of their money.
  • Remember how I said not to worry if you didn’t have all the skills you need?You don’t have to hire the world to fill every gap. For every gap, there is an alternative to hiring. Just make sure you understand the tradeoffs and that they don’t compromise your strategy.You also don’t have to hire right away.
  • Gap Filling Framework – Manage Money and TimeHere’s a way to think about your needs. How important the need is will determine its priority and your willingness to expend resources to get it.It will also determine your need for control.Regardless of how much money or resources you have, there are lots of creative ways to get what you need. Some may be cheap from a money standpoint, but expensive from a resource standpoint, such as training.And of course, how much of a skill you need is important: Is the need periodic? Do you need it now? And for how long?
  • Sometimes we may need to hire staff to fill certain roles. In other cases, we may be able to bring in advisors or consultants. For example, a consultant could help develop our strategic plan and then be placed on retainer for periodic check-ins to assess performance and to develop continuous improvement plans. Financial advisors, especially related to taxes, are another example of utilizing external resources to meet knowledge and experience gaps. When it comes to our own staff, the hiring process is critical to make sure that we actually fill the gaps we need. We’ll discuss staffing specifics a little later. When it comes to existing staff and understanding items such as the company’s strategic plan, customer relationships, or manufacturing processes, good old-fashioned on-the-job training may be the best way to go. But this should be done with purposeful methods and a sustainable program. For example, develop a new employee orientation. This will ensure that new people understand what your company is all about right away. Additionally, you will want to keep track of who has undertaken what training and possibly develop training requirements for advancement.In addition to training, more advanced staff may need to participate in external professional development opportunities like conferences, seminars, or symposiums in their particular field of expertise. These efforts build long-term skills and experience.You should initiate a training and professional development program to help ensure that your staff are always meeting knowledge and experience requirements, so that large gaps do not occur or are quickly addressed, and so that staff stay current with the ever-changing directions of today’s world.
  • At the end of the day, map out core needs to make sure your team can deliver, and do it in a way that investors will understand quickly.
  • Processes (Hard and Soft) – Leveraging e-learning tools be they technical or business. Now that we’ve discussed critical elements of the staffing process, let’s identify the elements of the staffing plan.
  • Who makes the key decisions in your organization, including who gets to make decisions at what level? The answer is the leadership team. The leadership team establishes the strategic plan for the organization and sets its broad direction. The leadership team will often involve company ownership and key positions, like president, vice president, secretary, treasurer, and so forth, and may also include senior managers from a few areas like operations, product development, or manufacturing, depending on the size and type of company.What about the startup team? You may need a startup team with special levels of autonomy and authority to develop and market new products. This team will need to rapidly conceive and execute value proposition experiments without excessive approvals that could bog down the process. The startup team may have to flex with the needs of the business: Cross-functional skill sets and team skills are as important as depth of experience. There’s also the management team. When you start out, you may have no layers of management. How many levels will be needed? Currently, managers may be expected to be take on high-level technical work? As you grow, where will the core management needs be? What processes will see the most growth? The answers to these questions can help establish the pyramid that makes up the organization chart. However, this process may not be one-size-fits-all for each department. Just as the U.S. Navy deploys large aircraft carriers with thousands of crew, it also utilizes small Navy SEAL teams for important missions. Will your company function best with a relatively small employee-to-supervisor ratio, or a much larger one?
  • Define roles and responsibilities around the different organizational components.As your company grows, its organizational structure will need to evolve. As your firm matures, it’s important to establish the roles and responsibilities for each organizational component and determine how functionality, geography, and so on will be accounted for. Each major grouping within the organization (and perhaps minor groupings, potentially all the way down to the individual staff person) should have a well-understood role within the company, revolving around responsibilities to achieve results that contribute to the overall company goals and mission. In other words, each major work group should have a narrative description and at least narrative goals, but often its own key performance indicators as well, which either roll up to or contribute to the company’s bottom line. Each workgroup should then be responsible for measuring, reporting, and analyzing on its key performance indicators, and improving performance.Additional considerations involved in establishing organizational structure include functionality and geography. For example, should your company house a centralized engineering or accounting type group responsible for executing those functions across organizational boundaries, or would it be more efficient to spread those resources out into each major workgroup? Also, how will geography be accounted for with respect to work locations? Do you need a sales force located with different regions? Are there special advantages to locating manufacturing plants in certain geographic areas or even parts of town?
  • An advisory board should provide complimentary skills to your teams. They are often a great way to add industry experience or to broaden your network.These aren’t full time positions; they counsel, introduce, reflect, provide feedback, and add background. When presenting your advisory board, use information that demonstrates skills, experience, and length of association with your company.
  • Strategically planning the workforce you wish to have in place for your enterprise is very important. You’ll need to figure out how many employees you need and what you want each of them to do for you. It is beneficial to have a team in place that is ready to drive your recruitment efforts.
  • The processes you need to run your company and satisfy customer needs are directly related to your workforce and the way you will organize it.
  • So, now that you have an idea of the skills you will need, the timing of the needs, the organization structure, and pay levels of the various skillsets, how do you put it all together into a plan that will help you hire the people you need, when you need them, and understand how it will impact your business financially?First, pick the measures of your company growth that truly represent activity. It may be easy to scale your company by sales dollars or some other financial metric, but is that meaningful? If sales go up, will the engineers really work any harder?If sales go up and the customer list does not grow, do you really need more sales staff?
  • What will this cost? How will we get a great team without burning a hole in our pockets?I won’t teach you how to recruit great players to help you change the world, but lets look at some of the more practical levers you can use to pay your team – and help you understand how much it will cost.It will help to have an idea of what the market rates for a given skill set might cost. This information can be provided online or through your network.Pay is obvious – or is it? There is the base salary you agree to, but that won’t include social security and other payments you will make to the government, as well as whatever component of the benefits you will provide. This table will give you an idea. In some cases, you may also get credits, rebates, and other incentives that will reduce these numbers without reducing your employees pay.Bonuses and ownership are ways to reduce the risks associated with a hire. Provide incentives and align your employees’ interests with the interests of the company.Incentives and benefits, along with work-life balance options like telecommuting, constitute the overall compensation package for your employees – they may provide leverage in the deal – which candidates value and which may be relatively easy to provide.Additionally, it’s necessary to remember that depending on job duties and qualifications, positions will be considered either exempted or not exempted from the Federal Fair Labor Standards Act, and so some employees will be paid on an hourly basis and be due overtime according to specific rules, or be salaried professionals.
  • Here are some drivers that have been used to model activity for different functions of a company. These may or may not apply to your enterprise. The key here is to understand how activity grows in your company so that you can staff it accordingly.
  • Human resources considerations.As a company grows, it is imperative to put adequate human resource protections in place. Would you like to see your company impacted by a hiring manager asking potentially discriminatory questions? There may be some degree of outsourcing for these resources initially, but even so, a baseline understanding of these topics will be needed for many staff and likely all managers.Your company will need legal counsel to help establish policies and practices that are consistent with local, state, and federal laws. This can run the gamut from hiring practices, setting up 401k plans, to occupational health and safety in a manufacturing plant. It is very important to have policies to help make decisions. By sticking to policies, companies can reduce risk from seemingly arbitrary and capricious personnel decisions. The firm will need to decide on a benefits package like health insurance, dental, life, etc., and whether any executive benefits programs will be established. Will your company offer profit sharing, bonuses, or other means to incentive staff?As a bare minimum, you will likely need to determine which holidays to offer (federal, state, or some other schedule), how much vacation time to allow and whether tenure will add to that (for example, three weeks of vacation after five years of service), and how to deal with sicknesses. When analyzing workload, you’ll need to consider these paid time-off categories.Finally, each position should have a specific job description. Job description statements usually include the job duties and decision making authority. It might also be a good idea to lay out the decision-making authority for the position and what kinds of eventual growth opportunities might be available within that position: for example intern or beginning level, to apprenticeship, to fully functioning.
  • In conclusion, stay focused on building a core team to get jobs done in context of creating value both for short term i.e. 18 months and longer term – People, Profits and Planet!Be Strategically minded yet tactically focused.

Transcript

  • 1. Cleantech Open 2013 Webinar Series Tuesday, August 20, 2013
  • 2. 2 Cleantech Open Confidential Information – All Rights Reserved Welcome to the National Webinar Series • With the Cleantech Open since 2007 • National Event Chair 2007 - 2009 • Programs Director 2010 - present MC: Helen Lambert, Programs Director, Cleantech Open
  • 3. 3 Cleantech Open Confidential Information – All Rights Reserved Global Partner
  • 4. 4 Cleantech Open Confidential Information – All Rights Reserved National Sponsors
  • 5. 5 Cleantech Open Confidential Information – All Rights Reserved Thank You To All Our Sponsors!
  • 6. 6 Cleantech Open Confidential Information – All Rights Reserved The Summer Program – July – September 2013 Date Time (PDT) Session I – Worksheets Time (PDT) Special Topic Sessions 7/9 1:30 to 2:30pm Business Model Canvas (Review) 2:45 to 4:00pm LaunchPad Central (Review) 7/16 1:30 to 2:30pm Product/Market Fit 2:45 to 4:00pm Systems Review, PR 101 7/23 1:30 to 2:30pm Markets and Getting to Them 2:45 to 4:00pm Term Sheets 7/30 1:30 to 2:30pm Product/Technology Validation 2:45 to 4:00pm Alternative Sources of Funding - Grant Writing / Crowd Sourcing 8/6 1:30 to 2:30pm Financials Analysis & Planning 2:45 to 4:00pm Review of Worksheets to date 8/13 1:30 to 2:30pm Legal Environment, Issues and Risks 2:45 to 4:00pm Cap Tables 8/20 1:30 to 2:30pm Management Team 2:45 to 4:00pm Working with the Utilities 8/27 1:30 to 2:30pm Sustainability 2:45 to 4:00pm Tell Your Story, Sell Your Story (Communicating value to stake holders) 9/10 1:30 to 2:30pm Last Chance For Questions 2:45 to 4:00pm 9/11 1:30 to 2:30pm Investor Presentation Mentor Assessment 2:45 to 4:00pm Review of Mock Judging, Regional Awards, Global Forum
  • 7. 7 Cleantech Open Confidential Information – All Rights Reserved Session 1: Management Team 1:30pm – 2:30pm, PDT • 30 year technology industry veteran, having run global businesses based in USA and Asia • Practitioner Lead Faculty for Strategy in the School of Business Speaker: Niraj Kohli President, CSC
  • 8. Cleantech Open Management Team: Execution and Team to Execute by Niraj Kohli – University of Phoenix
  • 9. University of Phoenix webinars include content from businessmodelgeneration.com and from Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers [ISBN: 978-0-470-87641-1] by Alexander Osterwalder and Yves Pigneur, (hereafter referred to as the “Work”). Copyright © 2010 by Alexander Osterwalder and Yves Pigneur. All rights reserved. Used by arrangement with John Wiley & Sons, Inc. Unless John Wiley and Sons, Inc.’s (“Publisher”) express prior written permission is obtained, it is prohibited to (a) remove or alter the author’s name, Publisher’s copyright notices, or other means of identification or disclaimers as they appear in the Work; (b) make electronic copies of the Work other than as permitted pursuant to Section 1.1 of Agreement between Publisher and Apollo Group, Inc. “(Apollo”); (c) mount or distribute any part of the Work on any electronic network (including without limitation, the Internet and the World Wide Web) other than the Sites; (d) use all or any part of the Work for the purposes of monetary reward by means of sale, resale, loan, transfer, hire, or other form of distribution of the Work; (e) distribute the whole or any part of the Work to anyone other than Authorized Registrants (as defined in the Agreement between Publisher and Apollo; (f) publish, distribute, or make available the Work, works based on the Work or which combine it with any other material, other than on the Sites as expressly permitted in this Agreement between Publisher and Apollo. Cleantech Open Webinar 7 – Management Team
  • 10. This webinar is a 60-minute meeting presented as part of the Cleantech Open and focuses specifically on concepts related to the execution and Core team.
  • 11. Cleantech Open Webinar 7 – Management Team Agenda o Value Creation in context of Jobs to be Done and Team o Management Team in context of People and Process o Management Team in Context of Scaling and Solutions o Summary and Questions
  • 12. Management Team Worksheet and Judging Criteria Worksheets o What are Your 18-month Milestones? o Who Will Execute Them? o Skill Gaps on the Team o Getting Whom You Need o Leverage your value chain o Worksheets – key to “scoring” well Judging Criteria o Is the current team credible, with relevant skills and appropriate connections for the product and its market(s)? o Does the team know their skill gaps to reach 18-month milestones, and is it clear how they will attract the right people to fill them, cost-effectively Cleantech Open Webinar 7 – Management Team
  • 13. Value Creation by understanding Jobs to be done and Team
  • 14. Cleantech Open Webinar 7 – Management Team How to win with your Business Model? Stay Focused on leveraging resources in effort to create Value!
  • 15. Cleantech Open Webinar 7 – Management Team (VP) VALUE PROPOSITIONS (CH) CHANNELS (CR) CUSTOMER RELATIONSHIPS (CS) CUSTOMER SEGMENTS (R$) REVENUE STREAMS(C$) COST STRUCTURE (KP) KEY PARTNERSHIPS (KR) KEY RESOURCES (KA) KEY ACTIVITIES Customer view – Front StageOperations view- Back Stage Economics view – Business Performance Stage businessmodelgeneration.com
  • 16. Cleantech Open Webinar 7 – Management Team Are there any questions?
  • 17. Management Team in context of People and Process
  • 18. Jobs to be Done: 18 months Skills and Gaps What skills are missing from your team? o Gaps:  Jobs to be done  Core building blocks  Knowledge or experience  Technical skills  Marketing or sales skills  Financial or business planning Cleantech Open Webinar 7 – Management Team
  • 19. Business Model / Customer Needs Drive Processes What are you doing for the customer? o How will you do it?  Design  Sell  Make  Deliver  Serve, fix, help, and train  Get paid  Learn: Follow up; get feedback Cleantech Open Webinar 7 – Management Team
  • 20. Processes Determine Skills Needed Processes • Municipal sales/site Selection • Site startup • Material processing • Pickup scheduling • Site reporting and management • Material sales • New product development • Supplier payment • Sales receipts • Franchise integration Skill sets • Site selection • Machine operation • Scheduling and planning • Logistics • Material sales • Product development • Payment and billing • Franchise Cleantech Open Webinar 7 – Management Team
  • 21. Skills Versus Team PATRICK WILLIAM TIERNEY 7484 Norfolk Place  Castle Rock CO 80108 (720) 733-0383  Patrick_Tierney@comcast.net General Manager with proven ability to lead manufacturing operations, sales, marketing, and product development. 17+ years leading people and processes. Effective change agent. P&L experience in global settings. JOHNS MANVILLE, 2004- 2005 A $2.5 B diversified Berkshire Hathaway company. Business Leader, HIGH PERFORMANCE NONWOVENS, Denver, Colorado 2004-2005 Led financial performance of a $62 million, 75-employee manufacturer of specialty nonwoven fabrics for construction materials, flooring and commercial furnishing applications, overseeing marketing, sales, and program management. Reversed shrinking sales from an annualized 38,000,000 run rate in Q2 2004 to 60,000,000 in 2005 while filling the business development pipeline with programs to double the business by 2008. Increased operating profit over 85% from $7 million in 2004 to over $12 million in 2005.  Operating Discipline: Initiated integrated order acceptance, scheduling and stocking plan, reducing product transitions, improving on-time delivery and increasing effective capacity 10% in one year.  Turnaround: Raised prices an average of 5% through increases and contract negotiations, securing over $5 million in business through 2008 while improving profitability.  Crisis Management: Led Business team through sales recovery efforts after a fire in Q3 2004 threatened one month’s sales.  Business Development: Led business team through the development of three major new product programs and creation of a $5MM capital upgrade program. Negotiated three joint development partnerships and one joint development agreement. EATON CORPORATION, 2002- 2003 A $7.2 B diversified Fortune 500 company (NYSE: ETN). Site Manager, EATON SAM MONACO, Monte Carlo, Monaco 2002-2003 Managed financial and operating performance of a $45,000,000, 250-employee manufacturer of precision pneumatic and hydraulic valves for automotive applications, overseeing design, manufacturing, human resources and finance. Deployed phase gate review process to manage new product portfolio. Used lean tools to reduce current capital by $1,500,000; reducing capital spend by 40% over two years. Increased profits 5% despite 8% decrease in sales, increasing cash flow return on gross capital from 18% to 20%.  Restructuring: Oversaw transfer of two opportunistic product lines to low labor cost countries to reduce costs and focus factory on new strategic direction. Reorganized factory by customer product line to align activity with customer driven objectives.  Strategic Planning and Implementation: Led plant team to develop strategy, organization capability, budget, and implementation plans to enable over 50% projected growth from 2004-2006. Developed Critical Success Factors, key objectives and deployed plans to drive improvements in cost, productivity, quality, product contamination, employee engagement and new product development. DANAHER CORPORATION, 1999-2002 A $5 B diversified Fortune 500 company known for lean manufacturing excellence (NYSE: DHR). President, ANDERSON INSTRUMENT COMPANY, Fultonville, New York 2000-2002 Led financial and operating performance of a $17,000,000, 80-employee manufacturer of sanitary process instrumentation, overseeing design, manufacturing, marketing, and sales. Led team of functional heads in steering company direction and driving execution of strategic initiatives. Beat profit plan by 4%, increasing profitability from 33% to 35% of sales on 5% revenue growth.  Organic Growth: Grew international sales 59%. Grew bio-pharmaceutical sales 5%. Implemented value selling process and funnel tracking procedures to grow overall sales 5%. Negotiated three year, $3,000,000 supply contract for radar sensors for new level sensing product. PATRICK WILLIAM TIERNEY 7484 Norfolk Place  Castle Rock CO 80108 (720) 733-0383  Patrick_Tierney@comcast.net General Manager with proven ability to lead manufacturing operations, sales, marketing, and product development. 17+ years leading people and processes. Effective change agent. P&L experience in global settings. JOHNS MANVILLE, 2004- 2005 A $2.5 B diversified Berkshire Hathaway company. Business Leader, HIGH PERFORMANCE NONWOVENS, Denver, Colorado 2004-2005 Led financial performance of a $62 million, 75-employee manufacturer of specialty nonwoven fabrics for construction materials, flooring and commercial furnishing applications, overseeing marketing, sales, and program management. Reversed shrinking sales from an annualized 38,000,000 run rate in Q2 2004 to 60,000,000 in 2005 while filling the business development pipeline with programs to double the business by 2008. Increased operating profit over 85% from $7 million in 2004 to over $12 million in 2005.  Operating Discipline: Initiated integrated order acceptance, scheduling and stocking plan, reducing product transitions, improving on-time delivery and increasing effective capacity 10% in one year.  Turnaround: Raised prices an average of 5% through increases and contract negotiations, securing over $5 million in business through 2008 while improving profitability.  Crisis Management: Led Business team through sales recovery efforts after a fire in Q3 2004 threatened one month’s sales.  Business Development: Led business team through the development of three major new product programs and creation of a $5MM capital upgrade program. Negotiated three joint development partnerships and one joint development agreement. EATON CORPORATION, 2002- 2003 A $7.2 B diversified Fortune 500 company (NYSE: ETN). Site Manager, EATON SAM MONACO, Monte Carlo, Monaco 2002-2003 Managed financial and operating performance of a $45,000,000, 250-employee manufacturer of precision pneumatic and hydraulic valves for automotive applications, overseeing design, manufacturing, human resources and finance. Deployed phase gate review process to manage new product portfolio. Used lean tools to reduce current capital by $1,500,000; reducing capital spend by 40% over two years. Increased profits 5% despite 8% decrease in sales, increasing cash flow return on gross capital from 18% to 20%.  Restructuring: Oversaw transfer of two opportunistic product lines to low labor cost countries to reduce costs and focus factory on new strategic direction. Reorganized factory by customer product line to align activity with customer driven objectives.  Strategic Planning and Implementation: Led plant team to develop strategy, organization capability, budget, and implementation plans to enable over 50% projected growth from 2004-2006. Developed Critical Success Factors, key objectives and deployed plans to drive improvements in cost, productivity, quality, product contamination, employee engagement and new product development. DANAHER CORPORATION, 1999-2002 A $5 B diversified Fortune 500 company known for lean manufacturing excellence (NYSE: DHR). President, ANDERSON INSTRUMENT COMPANY, Fultonville, New York 2000-2002 Led financial and operating performance of a $17,000,000, 80-employee manufacturer of sanitary process instrumentation, overseeing design, manufacturing, marketing, and sales. Led team of functional heads in steering company direction and driving execution of strategic initiatives. Beat profit plan by 4%, increasing profitability from 33% to 35% of sales on 5% revenue growth.  Organic Growth: Grew international sales 59%. Grew bio-pharmaceutical sales 5%. Implemented value selling process and funnel tracking procedures to grow overall sales 5%. Negotiated three year, $3,000,000 supply contract for radar sensors for new level sensing product. PATRICK WILLIAM TIERNEY 7484 Norfolk Place  Castle Rock CO 80108 (720) 733-0383  Patrick_Tierney@comcast.net General Manager with proven ability to lead manufacturing operations, sales, marketing, and product development. 17+ years leading people and processes. Effective change agent. P&L experience in global settings. JOHNS MANVILLE, 2004- 2005 A $2.5 B diversified Berkshire Hathaway company. Business Leader, HIGH PERFORMANCE NONWOVENS, Denver, Colorado 2004-2005 Led financial performance of a $62 million, 75-employee manufacturer of specialty nonwoven fabrics for construction materials, flooring and commercial furnishing applications, overseeing marketing, sales, and program management. Reversed shrinking sales from an annualized 38,000,000 run rate in Q2 2004 to 60,000,000 in 2005 while filling the business development pipeline with programs to double the business by 2008. Increased operating profit over 85% from $7 million in 2004 to over $12 million in 2005.  Operating Discipline: Initiated integrated order acceptance, scheduling and stocking plan, reducing product transitions, improving on-time delivery and increasing effective capacity 10% in one year.  Turnaround: Raised prices an average of 5% through increases and contract negotiations, securing over $5 million in business through 2008 while improving profitability.  Crisis Management: Led Business team through sales recovery efforts after a fire in Q3 2004 threatened one month’s sales.  Business Development: Led business team through the development of three major new product programs and creation of a $5MM capital upgrade program. Negotiated three joint development partnerships and one joint development agreement. EATON CORPORATION, 2002- 2003 A $7.2 B diversified Fortune 500 company (NYSE: ETN). Site Manager, EATON SAM MONACO, Monte Carlo, Monaco 2002-2003 Managed financial and operating performance of a $45,000,000, 250-employee manufacturer of precision pneumatic and hydraulic valves for automotive applications, overseeing design, manufacturing, human resources and finance. Deployed phase gate review process to manage new product portfolio. Used lean tools to reduce current capital by $1,500,000; reducing capital spend by 40% over two years. Increased profits 5% despite 8% decrease in sales, increasing cash flow return on gross capital from 18% to 20%.  Restructuring: Oversaw transfer of two opportunistic product lines to low labor cost countries to reduce costs and focus factory on new strategic direction. Reorganized factory by customer product line to align activity with customer driven objectives.  Strategic Planning and Implementation: Led plant team to develop strategy, organization capability, budget, and implementation plans to enable over 50% projected growth from 2004-2006. Developed Critical Success Factors, key objectives and deployed plans to drive improvements in cost, productivity, quality, product contamination, employee engagement and new product development. DANAHER CORPORATION, 1999-2002 A $5 B diversified Fortune 500 company known for lean manufacturing excellence (NYSE: DHR). President, ANDERSON INSTRUMENT COMPANY, Fultonville, New York 2000-2002 Led financial and operating performance of a $17,000,000, 80-employee manufacturer of sanitary process instrumentation, overseeing design, manufacturing, marketing, and sales. Led team of functional heads in steering company direction and driving execution of strategic initiatives. Beat profit plan by 4%, increasing profitability from 33% to 35% of sales on 5% revenue growth.  Organic Growth: Grew international sales 59%. Grew bio-pharmaceutical sales 5%. Implemented value selling process and funnel tracking procedures to grow overall sales 5%. Negotiated three year, $3,000,000 supply contract for radar sensors for new level sensing product. PATRICK WILLIAM TIERNEY 7484 Norfolk Place  Castle Rock CO 80108 (720) 733-0383  Patrick_Tierney@comcast.net General Manager with proven ability to lead manufacturing operations, sales, marketing, and product development. 17+ years leading people and processes. Effective change agent. P&L experience in global settings. JOHNS MANVILLE, 2004- 2005 A $2.5 B diversified Berkshire Hathaway company. Business Leader, HIGH PERFORMANCE NONWOVENS, Denver, Colorado 2004-2005 Led financial performance of a $62 million, 75-employee manufacturer of specialty nonwoven fabrics for construction materials, flooring and commercial furnishing applications, overseeing marketing, sales, and program management. Reversed shrinking sales from an annualized 38,000,000 run rate in Q2 2004 to 60,000,000 in 2005 while filling the business development pipeline with programs to double the business by 2008. Increased operating profit over 85% from $7 million in 2004 to over $12 million in 2005.  Operating Discipline: Initiated integrated order acceptance, scheduling and stocking plan, reducing product transitions, improving on-time delivery and increasing effective capacity 10% in one year.  Turnaround: Raised prices an average of 5% through increases and contract negotiations, securing over $5 million in business through 2008 while improving profitability.  Crisis Management: Led Business team through sales recovery efforts after a fire in Q3 2004 threatened one month’s sales.  Business Development: Led business team through the development of three major new product programs and creation of a $5MM capital upgrade program. Negotiated three joint development partnerships and one joint development agreement. EATON CORPORATION, 2002- 2003 A $7.2 B diversified Fortune 500 company (NYSE: ETN). Site Manager, EATON SAM MONACO, Monte Carlo, Monaco 2002-2003 Managed financial and operating performance of a $45,000,000, 250-employee manufacturer of precision pneumatic and hydraulic valves for automotive applications, overseeing design, manufacturing, human resources and finance. Deployed phase gate review process to manage new product portfolio. Used lean tools to reduce current capital by $1,500,000; reducing capital spend by 40% over two years. Increased profits 5% despite 8% decrease in sales, increasing cash flow return on gross capital from 18% to 20%.  Restructuring: Oversaw transfer of two opportunistic product lines to low labor cost countries to reduce costs and focus factory on new strategic direction. Reorganized factory by customer product line to align activity with customer driven objectives.  Strategic Planning and Implementation: Led plant team to develop strategy, organization capability, budget, and implementation plans to enable over 50% projected growth from 2004-2006. Developed Critical Success Factors, key objectives and deployed plans to drive improvements in cost, productivity, quality, product contamination, employee engagement and new product development. DANAHER CORPORATION, 1999-2002 A $5 B diversified Fortune 500 company known for lean manufacturing excellence (NYSE: DHR). President, ANDERSON INSTRUMENT COMPANY, Fultonville, New York 2000-2002 Led financial and operating performance of a $17,000,000, 80-employee manufacturer of sanitary process instrumentation, overseeing design, manufacturing, marketing, and sales. Led team of functional heads in steering company direction and driving execution of strategic initiatives. Beat profit plan by 4%, increasing profitability from 33% to 35% of sales on 5% revenue growth.  Organic Growth: Grew international sales 59%. Grew bio-pharmaceutical sales 5%. Implemented value selling process and funnel tracking procedures to grow overall sales 5%. Negotiated three year, $3,000,000 supply contract for radar sensors for new level sensing product. Skill sets • Site selection • Machine operation • Scheduling and planning • Logistics • Material sales • Product development • Payment and billing • Franchising Cleantech Open Webinar 7 – Management Team
  • 22. Gaps: Knowledge and Experience o Thought Leadership, Knowledge or experience  Assessment  Knowledge – Educational background – Training and professional development  Experience – Connections – Ability to spot and solve problems Cleantech Open Webinar 7 – Management Team
  • 23. Gaps: Technical o Specific Technical skills in context of Tasks that need to get done  Information technology  Product design  Science and engineering  Manufacturing Cleantech Open Webinar 7 – Management Team
  • 24. Gaps: Sales o Marketing or sales skills  Understanding customer segments and how to market them  Developing marketing plans for customer segments  Sales plan  Sales force Cleantech Open Webinar 7 – Management Team
  • 25. Gaps: Planning, Finance, and Accounting o Financial or business planning  Business Management – Business Model Canvas mindset  Financing – Financial Modeling – Profit and loss – Cash flow  Reporting: managing other people’s money Cleantech Open Webinar 7 – Management Team
  • 26. Filling Gaps Hire • Full-time • Temporary • Commission Contract • Training • PMOs and accounting firms • Credit cards • Distributors and MFR’s reps • Engineering firms and consultants Partner • Ancillary benefits • Fills gaps in partners portfolio Do without • Advisory Board * • Take the risk – How badly do you need it? • Can the customer do it? Web and self-service model LessCash MoreControl * May provide equity incentive Photo: Operations Management for Competitive Advantage, Chapter 5. Richard B. Chase, F. Robert Jacobs, Nicholas J. Aquilano; The McGraw-Hill Companies, Inc. 2006 Cleantech Open Webinar 7 – Management Team
  • 27. Gap Filling Framework Strategic Importance + Need for control + Availability of alternatives + Money and resources + Timing and permanence of need = Team plan Cleantech Open Webinar 7 – Management Team
  • 28. Filling People Gaps Filling Gaps: o Board Members o Advisors o Consultants o Team members  Hiring  Professional Engagement – Conferences, seminars, or symposiums, designed to engage with customers. Cleantech Open Webinar 7 – Management Team
  • 29. Cleantech Open Webinar 7 – Management Team
  • 30. Cleantech Open Webinar 7 – Management Team Are there any questions?
  • 31. Management Team in context of Scaling and Solutions
  • 32. Teams o Leadership  Strategic planning  Broad company direction  “Big” decisions o Startup  Level of autonomy to develop and market a new product  Conceive and execute experiments without excessive approvals  Cross-functional (i.e., representatives from all departments or areas) o Management  Levels of management and the number of staff to be deployed per the first level of workforce management Cleantech Open Webinar 7 – Management Team
  • 33. Organizational Chart o Roles o Responsibilities  Organizational components o Functionality o Geography o Evolution Core Team Start up phase Only Realign with Ops Steady State Future Function Cleantech Open Webinar 7 – Management Team
  • 34. Advisory Board An advisory board provides the following:  Skills to complement the team  Skills that are passing in nature  Background  Depth and expertise  Industry Contacts  Perspective Cleantech Open Webinar 7 – Management Team
  • 35. Team Building Planning o Identify how many employees and what type of employees you will need. o Identify your current recruitment resources.  Consider factors such as motivation and turnover. o Forecast the needs of your enterprise related to supply and demand. o Identify gaps and skill sets.  Training and talent acquisition Cleantech Open Webinar 7 – Management Team
  • 36. Processes Also Drive Structure Processes • Municipal sales and site selection • Site startup • Material processing • Pickup scheduling • Site reporting and management • Material sales • New product development • Supplier payment • Sales receipts • Franchise integration Cleantech Open Webinar 7 – Management Team
  • 37. Team Building Plan o Brings it all together  Skills/organization  People  Pay o Driven by activity as the company grows  Pick realistic drivers, not just the easy ones.  Project and track driver growth  Map staff to driver growth. – For example: Engineering staff to parts/products developed o Drives financial projections Cleantech Open Webinar 7 – Management Team
  • 38. Pay and Positions o Market rates for skills o Pay structure  Hourly/salary  Benefits  Incentive comp  Ownership  Other: Flex / telecommuting / vacation o Consider the Fair Labor Standards Act. o Exempt vs. non-exempt positions  Salary vs. hourly Wages, Salary and Benefits Table: Employee Total Wage: Hourly 14 Pay 27360 28560 28560 Performance Bonus - 10% 2856 Social Security 2513.28 UI 120 120 Health Insurance 3600 -1200 4800 SEP/IRA 1200 1200 1200 Total 34793 31416 34680 Cleantech Open Webinar 7 – Management Team
  • 39. Activity Drivers • # part #s • NPD projectsEngineering • Customers • # new customers • Jobs/projects Sales • # of employees • # hiring Human Resources/IT • Markets served • Products to support Marketing/Prod Management • # Suppliers • Product mixProduction Cleantech Open Webinar 7 – Management Team
  • 40. Human Resources Considerations o Legal o Policies o Hiring o Benefits  Incentives such as profit sharing and bonuses o Holidays, vacation, and sick time  Analyze workload while considering holidays, vacation time, etc. to determine staff level needs, including number and different types. o Develop position descriptions for all staff.  Qualifications, job duties, and decision-making authority Cleantech Open Webinar 7 – Management Team
  • 41. Cleantech Open Webinar 7 – Management Team Are there any questions?
  • 42. Conclusion o Stay focused on building a Core Team, getting jobs done and creating value. o Using Business Model Canvas with focus on People, Process and Solutions. o Sustainable - People, Profits and Planet Cleantech Open Webinar 7 – Management Team
  • 43. What is your plan for a Management Team?
  • 44. Cleantech Open Webinar 7 – Management Team Are there any questions?