2. Leadership
Ch. 16: Building a Team & Succession
Planning
16 - 2
The process of influencing and inspiring others to
work to achieve a common goal and then giving them
the power and the freedom to achieve it.
Entrepreneurs must take on many roles in their
companies, but none is more important than that of a
leader.
4. Effective Leaders
Ch. 16: Building a Team & Succession
Planning
16 - 4
Create a set of values and beliefs for employees and passionately
pursue them.
Establish a culture of ethics.
Define and then constantly reinforce the vision they have for the
company.
Respect and support their employees.
Set the example for their employees.
Create a climate of trust in the organization.
Build credibility with their employees.
5. Effective Leaders
Ch. 16: Building a Team & Succession
Planning
16 - 5
Focus employees’ efforts on challenging and driving toward those
goals.
Provide the resources employees need to achieve their goals.
Listen to their employees and Value the diversity of their workers.
Celebrate their workers’ successes who are willing to take risks.
Encourage creativity among their workers.
Maintain a sense of humor.
Create an environment in which people have the motivation, the
training, and the freedom to achieve the goals they have set.
Create a work climate that encourages maximum performance.
Become a catalyst for change when change is needed.
Keep their eyes on the horizon.
(continued)
6. Three Vital Tasks of a Leader
Ch. 16: Building a Team & Succession
Planning
16 - 6
1. Add the right employees and constantly improve their
skills.
2. Create a culture for retaining employees.
3. Plan for “passing the torch” to the next generation of
leadership.
7. Building an Entrepreneurial Team
Ch. 16: Building a Team & Succession
Planning
16 - 7
Study: 80% of employees turnover is caused by bad
hiring decisions.
Leadership IQ study:
46% of newly hired employees will fail in their jobs within
18 months.
19% of newly hired employees will achieve unequivocal
success.
Study: 34% of hiring managers admit to making bad
hiring decisions because they were under pressure to fill
a job.
8. 1 - 8
Ch. 6: Franchising and the Entrepreneur
16
-
8
FIGURE 16.1 Annual Growth Rate in the U.S. Labor Force Source: U.S. Census Bureau,
2008.
9. How to Hire Winners :
Ch. 16: Building a Team & Succession
Planning
16 - 9
Commit to hire the best talent.
Elevate recruiting to a strategic position.
Create practical job descriptions and job specifications.
Plan an effective interview.
Conduct the interview.
Contact references and conduct a background check.
10. Strategic Recruiting
Ch. 16: Building a Team & Succession
Planning
16 - 10
Look inside the company first.
Encourage employee referrals.
Make employment advertisements stand out.
Use multiple channels to recruit talent.
Recruit on campus.
Get involved in a college internship program.
Recruit “retired” workers.
Consider using offbeat recruiting techniques.
Offer what workers want.
11. Conducting a Job Analysis
Ch. 16: Building a Team & Succession
Planning
16 - 11
Create a job description - a written statement of the
duties, responsibilities, reporting relationships, working
conditions, and materials and equipment used in a job.
Handy tool: Dictionary of Occupational Titles
Create a job specification - written statement of the
qualifications and characteristics needed for a job,
stated in terms such as education, skills, and
experience.
12. Planning an Effective Interview
Ch. 16: Building a Team & Succession
Planning
16 - 12
Involve others in the interview process.
Develop a series of core questions and ask them of every job
candidate.
Ask open-ended questions rather than questions calling for “yes
or no” answers.
Create hypothetical situations candidates would encounter on
the job and ask how they would handle them.
13. Planning an Effective Interview
Ch. 16: Building a Team & Succession Planning
16 - 13
Probe for specific examples in the candidate’s work history that
demonstrate the necessary traits and characteristics.
Ask candidates to describe a recent success and a recent failure
and how they dealt with them.
Arrange a “non-interview” setting that allows others to observe the
candidate in an informal setting.
(continued)
14. Conducting an Effective Interview
Ch. 16: Building a Team & Succession
Planning
16 - 14
Break the ice.
Goal: to diffuse nervous tension.
Ask questions.
Puzzle interviews.
Remember the 25/75 Rule.
Be respectful and keep it legal!
Sell the candidate on the company.
Best candidates will have other job offers.
Your job: to convince the best candidates that your
company is a great place to work.
15. Company Culture
Ch. 16: Building a Team & Succession
Planning
16 - 15
Distinctive, unwritten, informal code of conduct that
governs the behavior, attitudes, relationships, and
style of an organization.
“The way we do things around here.”
In small companies, culture plays as important a
part in gaining a competitive edge as strategy does.
16. Characteristics of a Positive Culture
Ch. 16: Building a Team & Succession
Planning
16 - 16
Respect for work and life balance
Sense of purpose
Sense of fun
Engagement
Diversity
Integrity
Participative management
Learning environment
17. Job Design Strategies
Ch. 16: Building a Team & Succession
Planning
16 - 17
Job simplification - breaks work down into its
simplest form and standardizes each task.
Job enlargement (horizontal job loading) - adds
more tasks to a job to broaden its scope.
Job rotation - cross-trains workers so they can
move from one job in a company to others, giving
them a greater number and variety of tasks to
perform. Often used with a skill-based pay system.
18. Job Design Strategies
Ch. 16: Building a Team & Succession
Planning
16 - 18
Job enrichment (vertical job loading) - builds
motivators into a job by increasing the planning,
decision making, organizing and controlling functions
(which traditionally were managerial tasks).
Five core characteristics:
1. Skill variety
2. Task identity
3. Task significance
4. Autonomy
5. Feedback
(continued)
19. Job Design Strategies
Ch. 16: Building a Team & Succession
Planning
16 - 19
Flextime - an arrangement under which employees build
their work schedules around a set of “core hours” - such as
11 a.m. to 2 p.m. - but have flexibility about when they start
and stop work.
Job sharing - a work arrangement in which two or more
people share a single full-time job.
(continued)
20. Job Design Strategies
Ch. 16: Building a Team & Succession
Planning
16 - 20
Flexplace - a work arrangement in which employees
work at a place other than the traditional office, such as
a satellite branch closer to their homes or, in some
cases, at home.
Telecommuting - an arrangement in which employees
have employees working from their homes use modern
communications equipment to hook up to their
workplaces.
(continued)
21. Rewards and Compensation
Ch. 16: Building a Team & Succession
Planning
16 - 21
The key to using rewards to motivate workers is
tailoring them to the needs and characteristics of
individual workers.
Money is an effective motivator …
up to a point.
Pay-for-performance systems
Profit-sharing plans
Open book management
Cafeteria benefit plan
22. Rewards and Compensation
Ch. 16: Building a Team & Succession
Planning
16 - 22
Intangible rewards – such as praise, recognition,
celebrations, and others – can be powerful, yet
inexpensive, motivators.
Entrepreneurs tend to rely on non-monetary rewards.
