Hiring and Firing Founders Institute April 2010 [email_address] 312-953-2208
Successful leaders are not necessarily the ones with the greatest vision, or the most winning personality. They are ones who actually do what they say they are going to do and execute on their goals. This is why people trust good leaders and follow them willingly. Leadership
A Ceo’s job is to ______________ and _____________
What makes a good leader? <ul><li>Study Successes and failures! </li></ul><ul><li>Read books- Learn- </li></ul><ul><ul><li>Why make the same mistake someone else has already made? </li></ul></ul><ul><ul><li>Have a vision, goal, and ability to articulate it </li></ul></ul>
Who is this? He went into debt when he was twenty-three, to become a partner in a small store. 3 years later his partner died, and left him in debt that took years for him to repay. He dated a girl 4 years and, at the age of 28, asked her to marry him. She turned him down. At 37 he was elected to Congress... on his THIRD try. He then failed to be re-elected. This man's son died when he was only 4 years old. At age 45 he ran for the Senate...and failed to be elected. He persisted at politics and ran for the vice-presidency at 47 and again lost. Finally, at the age of 51, this man was _____________ His name is_______________
What company is this? According to legend, in the battle of marathon, the winners sent a messenger back to their hometown and it was 26 miles. That's where the marathon comes from. The messenger was so exhausted when he got there that he said one word: _______! And then died from dehydration and exhaustion. This word means ___________ in Greek. How can you proclaim _________!!
What is your Vision? <ul><li>How well can you articulate where you are going? What are your goals? Are they bigger enough for others to follow? </li></ul><ul><li>What are your Strengths? What do you need to be successful? </li></ul>
When you recruit or hire someone, you hire __________
Your greatest _____________, Is your greatest ________
Business Architect- One who has the vision to create and idea, know what it should look like in the end, and can then create the team to see the vision to reality. Similar to building a building, (plumbers, electricians, roofers, foundation) the execution is best accomplished by the experts that are smarter than you are- in their given field of expertise- Recruit up! Vision/ Direction Strategy Team Recruiting Technology Operations Finance Business Development Marketing Sales Vision/Direction: You must create the finished product in your mind. Have a picture or clear goal of what you want it to look like at the end. Similar to an architect- have the vision- then find the people Technology : These are the builders, programmers, and infrastructure people. Strategy/Execution : Are you a Skyscraper or Warehouse? Would you build a building without good blue prints? How good is your business plan? What are your goals and strategies. Why WON’T your idea work? Find people who have done it before. Finance : If you are weak in the numbers, be strong in the books. Marketing: Define your message, have consistent terminology, think “WIFU”-what’s in it for you- the customer Business Development : Finding new customers, creating relationships, staying abreast of competition. Not always a sales person or closer, but one to generate activity. Sales: Find a CLOSER! Sales is about closing your deals, getting customers, producing revenue, and shooting at the elephant until it’s yours! Operations : The gears of the company, don’t discount the importance of someone who can coordinate the team, make sure things are getting done, and direct projects. Team Recruiting : Know your strengths and weaknesses. Realize the important areas for your company. Build a diverse “advisory” board of people who are strong in all of these areas. For Management- sell a big enough vision for others to be a part of. Find people based on skill- not because they are like you and RECRUIT UP!
How do you quickly gauge someone? Pace Palette test
Characteristic Review of the Four temperaments Va lues-Joys-Strengths Reds: Persistence, exciting, variety, honesty in values, directness, decisiveness, recognition motivated , dreamers Yellows: Moral, family values, spiritual, structure, punctual, leadership, sharing, self esteem, determination, Blues: Friendly, family fun, animals, harmony, talkative, chameleon like Greens: Independent, knowledge, new, exploring concepts Aggravations- Irritations- Stressors Reds: Nit pickers, rules, negativity, lack of consideration, tardiness in others, noziness, gossip, bad listeners, waiting Yellows: Unfairness, lack of compassion, unrealiablity, disorder, non performace, lack of time, rudeness, unprofessionalism, violence Blues: Lies, unfaithful, opinionated, bossy, grudges, irresponsibility, lack of courtesy, Greens: Incompetence, stupidity, poor workmanship, small talk, talking before thinking Office Environment Reds: Trophies, plaques, pictures (self with important people-Adventure things), leadership books, adventure books, desk messy Yellows: Organized, neat, books (leadership, policies, procedures), pictures-portraits, deplomas, certificates, phone-“is it legal” Blues: Self help books, office messy, pictures-family, pets, offer you food/drink, friendly, phone-like to talk Greens: Computer, electric gizmos, digital watch, computer books, phone-ask a lot of questions Tasks: Climb a Mountain Reds: Let’s go! Yellows: planning, what to bring, how long, how many Blues: Great! Who’s going?? Greens: Scientints,, study in advance
Ask good questions <ul><li>What is your greatest strength? </li></ul><ul><li>Why do you think you would be a good fit here? </li></ul><ul><li>My Favorites </li></ul><ul><li>What did you like most about your last job? </li></ul><ul><li>What did you like least? </li></ul><ul><li>What would you alter or change if you could? </li></ul><ul><li>Ask the TOUGH! Questions </li></ul>
Negotiate ___________, or people think they have more __________
Term Sheet for _______: Equity compensation as an Advisor and Interim President: As a current participant, Advisor will be granted stock in the following designations and for the following activities. 1% immediate grant for services as advisor and potential migration to President 1% performance bonus for participation and successful closing of a sales opportunity within the next 60 days 1% performance bonus for successful closing of angel, seed or investment funding in an amount greater than $100,000 and secured within the next 45 days. 2% if amount exceed $250,000 within 60 days. 3% if equal to or exceeding $500,000 in 90 days. Responsibilities: If Advisor is available to move FULLTIME to the Company, Advisor shall assume the role and title of “President’, unless otherwise mutually agreed…… Responsibilities shall include but not be limited to; Salary and Equity compensation if executed move to President: $_____ per year. To be determined or discussed (contingent upon proper funding) Cash bonus to be determined Equity Compensation: An equity compensation in the amount of 30% of the current membership units of the xyz, and under the control of the Founder Stephen Meade, will be made available. The current capitalization is 5MM shares, of which 4,400,000 are with the Founder. Thus equity commitment for Advisor equals = 1,320,000 membership units Vesting and accelerator clause Upon full time employment, the stock compensation shall be vested quarterly over a 24 month period. A full employment agreement, stock option plan and documentation shall be provided. Employment agreement shall include full acceleration clauses.
Four Quadrants of Time Urgent Non Urgent Important Quadrant 1 Crisis Pressing Problems Deadlines Quadrant II Prevention Relationship Building Recognizing Opportunities Planning, Recreation Not Important Quadrant III Interruptions, telephone mail, reports meetings popular activities Quadrant IV trivia, busy work mail, email, internet time wasters pleasant activities
Interest No Interest Time No Time Has the time Has the background Has the credibility Not interested Has the time Has the interest Has the background Has credibility
Build your own story-Find a Hero <ul><li>Started as an Employee </li></ul><ul><li>Had a great idea- no one believed </li></ul><ul><li>Bought existing company </li></ul><ul><li>Was $2 million in debt </li></ul><ul><li>Started and grew locally </li></ul><ul><li>Created a National Chain </li></ul><ul><li>Is a Globally recognized brand </li></ul><ul><li>When times are tough- ask yourself, “what would _________do?” </li></ul>
What do you tell Others? <ul><li>What is your belief? </li></ul><ul><li>What are your goals? </li></ul><ul><li>What is your conviction? </li></ul><ul><li>What do you say when questioned on your choices of being an entrepreneur? </li></ul><ul><ul><li>I am following my dream, have a chance to change my family tree, retire my parents, send my nephew to school, and give back to society. </li></ul></ul><ul><ul><li>Yes, I may fail, but if I do, I can always go get a job…..and I’ll be just like _______! </li></ul></ul>