Getting the Right People on the Bus: How to Build a Team to Grow Your Business

Your Bus Driver’s CredentialsGlobal Staffing Roles with American Express, Ernst and Young LLP, and ThomsonChief People Officer at IGATE Capital Corp. and Computer Horizons CorporationNew Mexico Angels Board Member, Flywheel Ventures Human Capital Advisor, WESST Community CouncilNM Clients Include STC.UNM, Erin Adams Design, Pajarito Scientific, Knowledge Reef2

I’m Attending This Workshop Because I’m…Thinking About Adding or Recruiting:EmployeesExecutives A Board or AdvisorsAn Investor Who Evaluates Executive TeamsA Service Provider Interested in This Subject3

An Investor Who Evaluates Executive Teams

A Service Provider

Interested in This Subject

Jim Collins Said: “First Who, Then What.”Get the Right People on the Bus, The Wrong People Off the Bus, and Get the Right People in the Right Seats Before You Worry About Where You’re Going to Drive the Bus4

Jim Collins Asked in Inc. April 2009…“Do You Have a Culture of People Who:Share a Set of Values?Have Very Clear Responsibilities?Perform? Those Who Build a Culture Around Those Ideas Are Building Upon Something That is Largely Unchangeable”5

Trevor Loy Said: “We Bet on the Jockeys.”“The Start-Up Horse Race is a Relay Race in Where the Company Will Have To Change Horses Several Times Before the Finish Line, We Bet on the Best Jockeys”6

From the National Angels Organization…“At Least 60% of Our Decision To Invest is Based on the Strength of Management. The Right Team Can Take a Second-Rate Technology and Build It Into a Market Leading Company. The Converse Is Equally True. “7

From the National Angels Organization…The Management Team Must Display : Domain KnowledgeBusiness AcumenOperational ExpertisePassionEthics and HonestyTrack Record8

Domain Knowledge

Business Acumen

Operational Expertise

Passion

Ethics and Honesty

Track Record

From the National Angels Organization…People Due Diligence Checklist:Organizational ChartProfessional AdvisorsResumes With AccomplishmentsClear Roles and ResponsibilitiesEmployment Contracts/Non-CompetesSenior Management Team Gaps9

Organizational Chart

Professional Advisors

Resumes With Accomplishments

Clear Roles and Responsibilities

Employment Contracts/Non-Competes

Senior Management Team Gaps

Hire for Today or Hire for Tomorrow?Aim Ahead of Your Flight Path: Don’t Hire on the Basis of What People Can Do Today, but Whether They Can Grow With Your Company… Roger O’Brien President- O’Brien AssociatesAlways Hire People Better Than Yourself: Hiring People Almost as Good Starts a Declining Trend That Snowballs Into a Downward Spiral… Trevor Loy Managing Partner – Flywheel Ventures10

Current New Mexico Talent ChallengesBusiness Development Pros from Key IndustriesGeneral Managers with Entrepreneurial ExpertiseDeep Vertical/Industry/Functional ExpertsTechnical Geniuses with Commercial ExperienceNational and Global Supply Chain/Channel Gurus“Rapid Response Teams” to Test Business Models and Scale Early-Stage and Turnaround CompaniesActivating “Sleeper” CandidatesUndersupply of Experienced Leaders and Entrepreneurs is Key Concern for 67% of NMCCAP Survey RespondentsCurrent Recruiting Sources Can Be Fragmented, Inefficient, and/or Costly11

Business Development Pros from Key Industries

General Managers with Entrepreneurial Expertise

Deep Vertical/Industry/Functional Experts

Technical Geniuses with Commercial Experience

National and Global Supply Chain/Channel Gurus

“Rapid Response Teams” to Test Business Models and Scale Early-Stage and Turnaround Companies

Activating “Sleeper” Candidates

Undersupply of Experienced Leaders and Entrepreneurs is Key Concern for 67% of NMCCAP Survey Respondents

What Are Your Current Recruiting Challenges?12

What’s Going Well?13

The “Basics” of the Recruiting Process

Talent Acquisition and Retention StrategiesYour Employees Know BestFill a Pre-Qualified PipelineFind “People Who Know People Who Know People”Explore Service Provider Options Before the Need15

Your Employees Know Best

Fill a Pre-Qualified Pipeline

Find “People Who Know People Who Know People”

Explore Service Provider Options Before the Need

Comparing Recruiting Sources(1) Based on Hiring Two Executives Hires at $100K per Year16

Driving the “Right” Candidates To Your Door17

Adding Global Strategic, Technical, Industry Advisors Big HitterJetroMighty QuinnGolden Eye

Paying for Performance and PotentialUse On-line SourcesConsider Company, Team, and Individual IncentivesCreate a 80/20 Option PoolCreate a Board and Advisors Pool at 2% - 2.5% Board and Advisors at .10% to .5 % Apiece Based on Expected Contributions Vesting over 2-4 YearsReward and Recognition19

Increasing the Capabilities of Your TeamDraw a Four-Box MatrixThe Vertical Axis is PerformanceThe Horizontal Axis is Cultural Fit/LikabilityDefine for Your TeamRate Your Team QuarterlyDevelop Performance and Development PlansTake Appropriate Action20

Thank You!Mark WalztoniSustainable Ventures Alliance LLCSanta Fe, New Mexico(505) 603-5810Mark@sustainableventuresalliance.com