Subroto Bagchi August, 2006 The High Performance Entrepreneur

Of all entrepreneurial activity, less than 5% are likely to be high-potential. High-potential companies are called Gazelles. In the 90’s 70% of all US jobs were created by these companies and in Sweden – 7 in 10 of all new jobs are created by them High Performance Entrepreneurship does not happen accidentally. It is designed that way. To begin with, start with the right reason….. All the wrong reasons…

“ We are three good friends and we want to start a company” “ I have this great idea for a new gizmo” “ I hate my company and my boss” “ My time is running out” “ I want to help India” Now, do you have the right profile?

Profile of an Entrepreneur Love for money Self-confidence Sense of freedom Hard work & goal orientation Flexible, opportunistic and emergent Egoless How do entrepreneurs get the right idea?

Profile of an Entrepreneur

Love for money

Self-confidence

Sense of freedom

Hard work & goal orientation

Flexible, opportunistic and emergent

Egoless

Sometimes entrepreneurs work future-backwards and sometimes they work in a present forward manner……the MindTree, Café Coffee Day, Deccan Aviation and Biocon stories….. High Performance Entrepreneurs get excited about the big picture, a larger vision and then the pieces begin to fall in place After the right idea, it is time to build the “A” Team

Choosing the “A” Team… Look for proven competence, ability to pull weight Complimentary in the parts but collectively exhaustive Ability to multi-task Shared Vision Transparent

Choosing the “A” Team…

Look for proven competence, ability to pull weight

Complimentary in the parts but collectively exhaustive

Ability to multi-task

Shared Vision

Transparent

Choosing the “A” Team Personal integrity & mutual trust Ability to question each other and disagree Resilience Sense of humor The next issue: DNA, Mission, Vision & Values

Personal integrity & mutual trust

Ability to question each other and disagree

Resilience

Sense of humor

DNA – It is who you are Mission – It is where you are going Vision – A set of time-bound and measurable goals Values – It is the shared code of conduct Now, how will you be different?

DNA – It is who you are

Mission – It is where you are going

Vision – A set of time-bound and measurable goals

Values – It is the shared code of conduct

Domain Tools Methodology Quality Innovation Branding Next Step: Writing the Business Plan

Domain

Tools

Methodology

Quality

Innovation

Branding

Take the Business Plan seriously….. Executive Summary Business Context Company & its Objectives Core Values Positioning & Business Overview

Take the Business Plan seriously…..

Executive Summary

Business Context

Company & its Objectives

Core Values

Positioning & Business Overview

Now you are ready to seek the investor. Choose the right investor Take the Business Plan seriously….. Sales & Marketing Delivery & Process People & Structure Risk Factors Financials

Sales & Marketing

Delivery & Process

People & Structure

Risk Factors

Financials

Choose the right investor…. Smart vs. Dumb Capital Color of money The lure of Non-interference Mutual expectations Family & Friends It is now time to think of attracting and retaining the right talent

Choose the right investor….

Smart vs. Dumb Capital

Color of money

The lure of Non-interference

Mutual expectations

Family & Friends

Pay attention to the first 40 Write the job description Sell the job yourself Explain the downsides Run with defined objectives

Pay attention to the first 40

Write the job description

Sell the job yourself

Explain the downsides

Run with defined objectives

Have a transparent Compensation and Benefit structure Invest in a Performance Management System Devote time to talent & leadership development Communicate with the 95:95:95 principle It is time to think of building a Process-centric organization

Have a transparent Compensation and Benefit structure

Invest in a Performance Management System

Devote time to talent & leadership development

Communicate with the 95:95:95 principle

Build a Quality organization from the start Focus on the People, Process &Technology triad Choose a framework but look beyond compliance Have a roadmap, be practitioner-led Listen to the voice of the customer and involve everyone You are now ready to seek your Customers. But choose Customers right

Build a Quality organization from the start

Focus on the People, Process &Technology triad

Choose a framework but look beyond compliance

Have a roadmap, be practitioner-led

Listen to the voice of the customer and involve everyone

Angels come through providence Build processes to get your early wins Choose your customers wisely. Look for reasons such as: Techno-managerial value - add Trust Sense of equality Commercially win-win Manage your money wisely

Angels come through providence

Build processes to get your early wins

Choose your customers wisely. Look for reasons such as:

Techno-managerial value - add

Trust

Sense of equality

Commercially win-win

Love money – there is no other reason to get into business Be frugal – do not pay yourself out of business Install an accounting package from the word go Know what to measure and measure it Respect the bean counters Get the best auditor in town

Love money – there is no other reason to get into business

Be frugal – do not pay yourself out of business

Install an accounting package from the word go

Know what to measure and measure it

Respect the bean counters

Get the best auditor in town

Keep overheads low Raise money before you need it Do not fritter away equity Put in place corporate governance from the start Report accounts to your investors on time, without window dressing ever Focus on Building your Brand

Keep overheads low

Raise money before you need it

Do not fritter away equity

Put in place corporate governance from the start

Report accounts to your investors on time, without window dressing ever

Brand is the communication of your intrinsic worth It must be consistent with your DNA, Mission, Vision and Values Choose the name and visual identity right Focus on the message map, based on the company’s positioning

Brand is the communication of your intrinsic worth

It must be consistent with your DNA, Mission, Vision and Values

Choose the name and visual identity right

Focus on the message map, based on the company’s positioning

Spend energy on the website and the intranet Get a PR agency Build affection for content Use the workplace as a brand ambassador Lets us now talk about emergence, willingness to change & managing adversity

Spend energy on the website and the intranet

Get a PR agency

Build affection for content

Use the workplace as a brand ambassador

An enterprise is like a river. Seeing the source, you cannot imagine the confluence Be emergent – bend and flow There is no one way of solving problems, sometimes it is better to simply stay ahead of problems

An enterprise is like a river. Seeing the source, you cannot imagine the confluence

Be emergent – bend and flow

There is no one way of solving problems, sometimes it is better to simply stay ahead of problems

Long-distance runners must bear segmented pain In difficulty, be transparent and communicate Publish decisional rules to the organization Reasons Start-Ups fail

Long-distance runners must bear segmented pain

In difficulty, be transparent and communicate

Publish decisional rules to the organization

Founders break-up Enterprise runs out of cash Deadly embrace of a customer or a product Technology/Customer/Geo over-dependence Founders do not let go

Founders break-up

Enterprise runs out of cash

Deadly embrace of a customer or a product

Technology/Customer/Geo over-dependence

Founders do not let go

Poor governance Founders get carried away with their image Try to be too big, too soon Wrong choice of investor Lessons from the Indian IT Industry

Poor governance

Founders get carried away with their image

Try to be too big, too soon

Wrong choice of investor

To be world-class, begin and end with quality Focus on what you know, not who you know Build an abundance mindset Pay your taxes right Be hierarchy-free

To be world-class, begin and end with quality

Focus on what you know, not who you know

Build an abundance mindset

Pay your taxes right

Be hierarchy-free

Leaders exemplify personal integrity Set up hairy, audacious goals Build deep inclusion Organization resources are not my resources Austere leadership

Leaders exemplify personal integrity

Set up hairy, audacious goals

Build deep inclusion

Organization resources are not my resources

Austere leadership

It is about ordinary people delivering extra-ordinary results Play it by the book

It is about ordinary people delivering extra-ordinary results

Play it by the book

Thank You

Thank You