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Company Formation: Hiring

We all know a company is only as good as its team, which is why the hiring process is so critical as you build out your venture. This presentation focuses on the different considerations an entrepreneur should make with regard to hiring, featuring insights from Russ Campanello, iRobot’s senior VP of HR, and Eric Gaffen, Acquia’s global manager of talent acquisition. The presentation also provides recommendations on specific questions to ask when trying to find your ideal candidate.

1 of 60
Hi
Hi

Harvard innovation lab :
@innovationlab

Michael J Skok :

Startup Secrets :

Hiring

@mjskok

Harvard innovation lab

#startupsecrets

www.mjskok.com

STARTUP
SECRETS
An insider‟s guide to unfair competitive advantage

Company Formation: HIRING
Part 2 of COMPANY FORMATION

MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com

1
Hi

Harvard innovation lab :
@innovationlab

Michael J Skok :

Startup Secrets :

Hiring

@mjskok

#startupsecrets

www.mjskok.com

Company Formation
Agenda: “Foundations for Building an Enduring
Company”
• Part I (Last week)
– Vision
– Mission
– Culture

• Part II (Tonight)
– Hiring
2
Hi

Harvard innovation lab :
@innovationlab

Michael J Skok :

Startup Secrets :

Hiring

@mjskok

#startupsecrets

www.mjskok.com

Welcome
• Russ Campanello
– Senior Vice President
of HR

• Eric Gaffen,
– Global Manager of
Talent Acquisition
eric.gaffen@acquia.com
3
Hi

Harvard innovation lab :
@innovationlab

Michael J Skok :

Startup Secrets :

Hiring

@mjskok

#startupsecrets

www.mjskok.com

Why is hiring important?
• The most important capital = human capital
• You are what you hire

4
Hi

Harvard innovation lab :
@innovationlab

Michael J Skok :

Startup Secrets :

Hiring

@mjskok

#startupsecrets

www.mjskok.com

Hire above your grade, never below
• A‟s hire A‟s
• B‟s hire C‟s
• C‟s = Cost you your company

5
Hi

Harvard innovation lab :
@innovationlab

Michael J Skok :

Startup Secrets :

Hiring

@mjskok

#startupsecrets

www.mjskok.com

When you make the wrong hire and
lose people, you lose
• What they know
• Who they know
$25.05B/year in costs associated with
knowledge loss from just 1% of employees

• As a startup, your organization risks
disorganization
6

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Company Formation: Hiring

  • 1. Hi Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok Harvard innovation lab #startupsecrets www.mjskok.com STARTUP SECRETS An insider‟s guide to unfair competitive advantage Company Formation: HIRING Part 2 of COMPANY FORMATION MICHAEL J SKOK North Bridge Venture Partners twitter: @mjskok mjskok.com 1
  • 2. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Company Formation Agenda: “Foundations for Building an Enduring Company” • Part I (Last week) – Vision – Mission – Culture • Part II (Tonight) – Hiring 2
  • 3. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Welcome • Russ Campanello – Senior Vice President of HR • Eric Gaffen, – Global Manager of Talent Acquisition eric.gaffen@acquia.com 3
  • 4. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Why is hiring important? • The most important capital = human capital • You are what you hire 4
  • 5. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Hire above your grade, never below • A‟s hire A‟s • B‟s hire C‟s • C‟s = Cost you your company 5
  • 6. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com When you make the wrong hire and lose people, you lose • What they know • Who they know $25.05B/year in costs associated with knowledge loss from just 1% of employees • As a startup, your organization risks disorganization 6
  • 7. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Hiring It‟s all in the details… 7
  • 8. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Hiring: Assess 3 key things … Can they be successful at the job? EKS Aptitude IQ Will they really love the job? Ability Attitude Will they fit and reinforce? CQ 8
  • 9. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Hiring: Can they be successful at the job? Do they have the EKS: – Experience – Knowledge – Skills Ability Attitude And where applicable, the IQ – Intelligence – Smarts 9
  • 10. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Hiring: Will they really love the job? • Can you find people‟s passion? – If people love what they do, they tend to do it well – If they do it well, they tend to be successful • Can you Ability Attitude – Find a fit for what they love to do? – Set them up for success? 10
  • 11. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com My first interview question? What are you passionate about? – sometimes my ONLY question! 11
  • 12. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Hiring: Will they really love the job? Love it People who are really passionate about their work tend to love what they do, take pride in it, and the results and rewards all follow. This creates a self reinforcing positive virtuous cycle of success Reward Uncover Do Well their Passion Attitude Ability Success 12
  • 13. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com It doesn‟t have to be all about work… "I never did a day's work in my life. It was all fun.” Thomas A. Edison 13
  • 14. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Another revealing question? What would you choose to do if today was your last day of work? 14
  • 15. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Hiring is more than a science… Beyond, EKS, IQ… • Think about what will set someone up for success in your situation / team / organization – Street smarts vs. Book smarts? – Judgement vs. Intellect? – Effort vs. Ability? • Think about how to find a FIT… 15
  • 16. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com EQ: Emotional Quotient • Inter-personal skills, connections & relationships are vital in a startup • 3 Examples: – “Speed teaming” • Form and re-form rapidly – eg around problem solving • Cross functional and interdisciplinary teams often best – Customer intimacy • Often vital in product development, support etc – Leverage: building relationships with key stakeholders • Shareholders – for strong investor support • Suppliers – for faster time to market • Partners – for leveraging other‟s capabilities 16
  • 17. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Startup Secret: Hire for EQ, CQ • EKS: Experience, Knowledge, Skills • IQ: Intelligence Quotient • EQ: Emotional Quotient – Fit with your team etc • CQ: Cultural Quality – Fit with your values etc “the fit between personalities was so much more important than just finding people who were very good” Dick Costolo, CEO Twitter Wasserman, Noam (2012-03-25). The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup (Kauffman Foundation Series on Innovation and Entrepreneurship) (p. 216). Princeton University Press 17
  • 18. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Example Interview Questions • IQ – What is the most relevant experience, knowledge or skill you bring to this job? – What is your favorite example of a problem you‟ve solved, and how did you solve it? • EQ – What are you most proud of in your work interactions? – What is it that you relate to in our company? • CQ – What do you value most? – What have you most enjoyed in your previous jobs? 18
  • 19. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Startup Secret: Hire for CQ do QC • EKS: Experience, Knowledge, Skills • IQ: Intelligence Quotient • EQ: Emotional Quotient • CQ: Cultural Quality – FIT with your values etc • QC: Quality Control – Is each hire Additive or Dilutive to your culture? – Is each hire Multiplying or Dividing your culture? 19
  • 20. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Everyone wants „A+‟ players… 20
  • 21. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Hiring A+ players • What does that really mean? • How can you apply it in practice? 21
  • 22. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Startup Secret: Hire 3As • Attitude • Aptitude • Ability Aptitude Ability Attitude Note: Ability – is really in the broader sense suitability for the job 22
  • 23. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Attitude Examples of what to look for: • Problem solving – Fail fast, learn faster • Persistence – To get to the root of the problem, issue, or opportunity • Participation – Team 23
  • 24. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Startup Secret: Hire 3As, 3+s + Aware (self) + Authentic + Athlete Aptitude Ability Attitude 24
  • 25. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Hiring: 3 key things lead to the “Golden Triangle” Can they be successful at the job? Will they really love the job? Will they fit and reinforce? EKS Aptitude Ability IQ Attitude CQ 25
  • 26. Harvard innovation lab : Michael J Skok : Startup Secrets : Hiring @mjskok @innovationlab #startupsecrets www.mjskok.com Hiring: The tools REAL References Hi • EKS – Resume • Interviews EKS • IQ Aptitude IQ – Proof, eg • Problem solving – e.g. Engineers – code Ability Attitude • CQ – Interactions, observation • Trust the process CQ 26
  • 27. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Summary – Hiring • EKS, IQ = can they be successful at the job? – Check with REAL references • CQ, EQ (Cultural Quality) = will they fit & reinforce? – Do QC (Quality Control) for additive vs. dilutive to your culture • Uncover their Passion = will they really love the job? – Separate from needs • Golden Triangle = all the above and A+ players: – Look for 3As: Attitude, Aptitude, Ability +++ Aware, Authentic, Athlete 27
  • 28. 28
  • 29. + 250 29 Warner Music Group artist websites, 3 site templates, total creative freedom
  • 31. add whole foods 340 31 Unique digital experiences built on a common Drupal platform – empower store managers to personalize their store site
  • 32. Acquia Hiring Acquia DNA • Committed to Awesome • Do the Right Thing • Jump In and Own It • Give Back More • Inspire a Little Crazy 32
  • 33. Acquia Hiring PIII • Passion • Integrity • Intelligence • Initiative 33
  • 34. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com 3 practical startup hiring tips Because I hear these questions all the time… 34
  • 35. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Tip 1: hiring known quantities… Just hire people you know & have worked well with in past? YES – proven teaming, fit NO – “startups that relieddifferent heavily on the founders’ every situation is relatively – personalitnetworkslike this in the past!” that were » “vs. worked received valuations 37% higher than those received by startups that diversity of background can be good barely tapped the founders’ networks” » “think different” Wasserman 35
  • 36. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Tip 1: hiring known quantities… Just hire people you know and you have worked well with in past? YES – proven teaming, fit NO – every situation is different » “vs. it worked like this in the past!” – diversity of background can be good » “think different” 36
  • 37. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Tip 2: balance Youth AND Experience Youth or Experience? YES! Youth + Experience = Success what‟s possible? what to consider balance 37
  • 38. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Tip 3: Listen don‟t sell! • Find out what the candidate needs, wants, loves • And FIT it to a position you have • Great interviewers ask great questions and really listen and observe – To really understand the candidate – Find the fit • They don‟t sell if there‟s not a fit – Everyone loses when you hire and fire 38
  • 39. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Tip 3: Listen don‟t sell! • Find out what the candidate needs, wants, loves • And FIT it to a position you have • Great interviewers ask great questions and really listen and observe – To really understand the candidate – Find the fit • They don‟t sell if there‟s not a fit – Everyone loses when you hire and fire 39
  • 40. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Russ, 25 years of experience… iRobot Phase Forward Genzyme Lotus 40
  • 41. Hi Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok Harvard innovation lab #startupsecrets www.mjskok.com STARTUP SECRETS An insider‟s guide to unfair competitive advantage Hiring Questions & Interview Tips for the Perfect FIT MICHAEL J SKOK North Bridge Venture Partners twitter: @mjskok mjskok.com 41
  • 42. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Interviewing techniques It’s a skill to develop like any other, but needs to be personalized 42
  • 43. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com 3 steps • 3 steps 1. Questioning 2. Listening 3. Observing 43
  • 44. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Cultural Quality (CQ) Questions • What are you passionate about? – What is the most fun you‟ve ever had? • (Intentionally open to understand work / life passions / balance • What have you most enjoyed in your previous jobs? • What do you love doing day-to-day? – (What would an ideal day look like?) • If you could have changed one thing at your previous/current job, what would it be? – (Also - listen for why the person didn‟t change it) • What is it you think you‟ll enjoy most about this job? 44
  • 45. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Cultural Quality (CQ) Questions Aspirations • What do you aspire to in life? – How are you pursuing them? • What do you want or feel you need to learn? – (To achieve those aspirations) – (Listen for difference between want and need) • What legacy do you hope to leave? – (What do you hope to be remembered for ?) 45
  • 46. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Cultural Quality (CQ) Questions Values • What values do you believe in? – How do you live those values? • What do you value most? • Personalize remaining questions for your values – (e.g. What does Trust mean to you?) 46
  • 47. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Cultural Quality (CQ) Questions Other • What does balance mean to you in your life? • What else do you love about you life? – (Listen for consistency in outside interests with answers regarding work ethics, style etc.) 47
  • 48. Harvard innovation lab : Hi @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Cultural Quality (CQ) Questions For Managers: • What does management mean to you? – (e.g. What is the role of management?) • What environment do you like to create? • How do you like to be treated? – (Compare with answer to previous question) • • • • • Who comes first, your customer or your team? Do you judge by effort or results? What do you celebrate/reward? What do you trust and what do you verify? If you were hiring me for this job, what other questions would you ask of me? 48
  • 49. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Emotional Quotient (EQ) Questions • What do people think of you? – How accurate is their perception? • How do you feel you still need to develop personally? (Look for self respect and yet self awareness) • What work relationships are you most proud of and why? • What are examples of work interactions you are most proud of and why? • What have you learned from your best and worst work relationships? • What is it that you relate to in our company? 49
  • 50. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Emotional Quotient (EQ) Questions For Managers • How would people describe your management style? – (Compare with the CQ manager answers) • How do you like to be treated? – (Consistent with how you treat others?) 50
  • 51. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Intelligence Quotient (IQ) Questions NOTE: there are many sources of these and they need to be specific to the job. Try to find practical instantiations and real world tests • What is the most relevant Experience, Knowledge or Skill (EKS) you bring to the job? • How do you experiment? • In your previous role(s), what did you learn, prove and act on? • What are examples of problems that arose and where did they lead you? • What is your favorite example of a problem you‟ve solved, and how did you solve it? 51
  • 52. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com My final question: What else should we know about you? – You will be amazed at what comes out! 52
  • 53. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com 3 steps to discern 3 things… • 3 steps 1. Questioning 2. Listening 3. Observing Can you hear and separate what your candidate • needs ? • wants ? • loves ? 53
  • 54. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com 3 steps to discern 3 things… • 3 steps 1. Questioning 2. Listening 3. Observing • • • • • Comfort Poise Presence Thought Engagement Can you hear and separate what your candidate • needs ? • wants ? • loves ? 54
  • 55. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com 3 steps to discern 3 things… • 3 steps 1. Questioning 2. Listening 3. Observing Personally, I take careful notes 3 panes: Questions, Answers, Observations Themes – I circle – eg “building”, leading”, “customer” Can you hear and separate what your candidate Needs EG: get paid enough to feel secure, to learn • needs ? Wants EG: to be recognized, rewarded, achieve, get promoted • wants ? Love EG: to contribute, make a difference • loves ? 55
  • 56. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com My purely personal tips… • Agree your agenda – “Get to know you” first • (You are looking for CQ, EQ) – Then evaluate IQ • Break down EKS • Help the interviewee get comfortable and enable them to be authentic • If necessary take them for a walk or get out of the office • Leave time to be questioned – Learn from what is asked of you 56
  • 57. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Startup Secret: Find Mutual Fit • FIT what the candidate needs, wants, loves • To a position you have (or NOT!) • Ask great questions and really listen and observe – To really understand the candidate – Find the fit • Don‟t sell if there‟s not a fit – Everyone loses when you hire and fire • If you‟ve got a mutual FIT – The candidate will select you – As much as you hire them 57
  • 58. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Startup Secret • Be patient – Hire the right person… • NOT – The person right now (It will cost you far more time and money in the end than being patient and finding the right person who really fits.) 58
  • 59. Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok #startupsecrets www.mjskok.com Thank you • Russ Campanello – Senior Vice President of HR • Eric Gaffen, – Global Manager of Talent Acquisition eric.gaffen@acquia.com 59
  • 60. Hi Hi Harvard innovation lab : @innovationlab Michael J Skok : Startup Secrets : Hiring @mjskok Harvard innovation lab #startupsecrets www.mjskok.com STARTUP SECRETS An insider‟s guide to unfair competitive advantage Company Formation: HIRING Part 2 of COMPANY FORMATION MICHAEL J SKOK North Bridge Venture Partners twitter: @mjskok mjskok.com 60

Editor's Notes

  1. Needs EG: get paid enough to feel secureWantsEG: to be recognized, rewarded, achieve, learn, grow, get promotedLove EG: to contribute, make a difference, enjoy work
  2. Needs EG: get paid enough to feel secureWantsEG: to be recognized, rewarded, achieve, learn, grow, get promotedLove EG: to contribute, make a difference, enjoy work