This document discusses leadership and group dynamics within startups. It notes that while not all new companies are startups, startups are designed for very fast growth when small in size and recently founded. It explores how the costs to launch an internet startup have decreased and professional support structures have increased. It examines the culture of failure within startups and discusses leadership qualities and how team dynamics change over the startup lifecycle from the initial founding to later growth stages.

1. Leadership without Organisation
Perspectives on management and group dynamics of startups
19.11.2012
Oliver
Holle,
CEO
Speedinvest

2. Startups

3. What
is
a
Startup?
Not
every
new
company
is
a
startup,
actually
most
are
not...
Designed
for
very
fast
growth
Small
in
size
(2-­‐5
people)
Recently
founded
O"en,
not
always:
Technology
focus
Innova1on
Interna1onal
Young
founders
3

4. InnovaIon
&
Startups
Not
every
startup
is
innovaIve!
True
technology
innovaIon
is
the
exempIon,
not
the
norm
ONen
translaIon
of
new
digital
business
models
in
new
sectors
/
industries
Copy
cat
phenomenon
Key
success
factor
speed
&
execuIon
4

5. Startup
Boom
16%
of
Stanford's
MBA
program
start
their
own
company,
up
3x
since
2009
(Fortune
Magazine)
5

6. Startup
Boom
In
2003,
Google
was
a
five-­‐year-­‐old,
privately-­‐held
startup
and
Bear
Stearns
was
an
80-­‐year-­‐old
pillar
of
the
financial
sector.
Five
years
later,
Google
was
a
pillar
of
the
technical
economy
and
among
the
world’s
biggest
companies;
Bear
Stearns
had
ceased
to
exist.
The
comparaIve
appeal
of
the
two
sectors
has
dramaIcally
shiNed.
6

7. Costs
to
launch
an
Internet
Startup

8. The
Lean
Startup
Paradigma
Extremly
short
Development
Cycles
“Minimum
Viable
Product”
Immediate
User
Feedback
Constant
IteraIon
&
Pivots
Metrics,
Metrics,
Metrics

9. The
New
Startup
Landscape
Professional
Support
Benchmarking
&
CompeIIon
Struktures
&
Processes
Rapid
Prototyping
Startup
Acce-­‐
Super
Angels
Factories
lerators
^^
„Industrialisa2on
of
startup
szene“

10. The
Culture
of
Failure
Startup
founders
are
"connoisseurs
of
failure,
experts
in
both
avoiding
it
and
living
with
it“
Paul
Graham,
Ycombinator
My
fund
is
a
"fail
factory"
Dave
McClure,
500
Startups
Top
Silicon
Valley
conference
=
FAILCON
10

11. Startups
-­‐
Risk
/
Reward
Profile
Big
companies
aren’t
as
stable
as
you
think
Big
companies
aren’t
loyal
to
employee
Equity kicker
Startups
that
have
financing
pay
premy
well
When
you
join
a
startup,
you
are
also
joining
a
network
Founder @ well
funded startup
market salary
Low salary Back to normal job
No salary Failure: try again
11

12. Startups
as
a
Career
Path
For
most
people
I
know
who
join
or
start
companies,
the
primary
goal
is
not
to
get
rich.
It
is
to
work
on
something
they
love,
with
people
they
respect,
and
to
not
be
beholden
to
the
vagaries
of
the
market.
In
other
words,
to
be
independent.
Paul
Graham
12

13. Leadership
in
Startups
13

14. What
makes
Founders
Tick?
Is
it
different
from
the
rest?
Status
Money
Interest
EmoIons
Quality
of
Life

15. What
makes
Founders
Tick?
Is
it
different
from
the
rest?
Startup Universe
Status
Money
Interest
EmoIons
Quality
of
Life
15

16. Key
MoIvaIng
Factor
=
Immediateness
Joint
results
All
key
tasks
are
performed
by
the
group
Extremly
short
feedback
cycles
Clearly
visible
compeIIon
Team
issues
are
direct,
immediate,
no
corporate
poliIcs
Success
only
in
the
team,
no
individual
career
paths
16

17. ObservaIons
at
succesful
startups
Immediateness
requires
authenIcity
Lack
of
formal
hierarchy
requires
conInuous
jusIficaIon
of
leadership
role
Joint
view
on
the
future
is
key
„EmoIonal
Pressure“
instead
of
tracking
Ime
in
office
Barriers
between
work
and
life
keep
blurring
17

18. What
Startup
Leaders
Offer
I have the I will watch out
vision for you
I will make you
rich
18

19. What
Keeps
Teams
Together
Trust &
Commitment
Interest: "Experts
"together through
& Geeks united"
hell and beyond"
Cash: "my ticket
to fame &
fortune"
19

20. Innovation Commitment
Facts, Expertism Flexibility
Reputation Crisis resistant
Lack of felxibility Team quality
Internal focus Trust & Tough Choices
Market comes last Interest: Commitment Internal focus
"together
"Experts &
through hell
Geeks united"
and beyond"
Cash: "my
ticket to fame
& fortune"
Professionalism „Hired guns“
Focus Lack of innovation
Market perspective Risk of breaking up
20

21. Leadership
Dynamics
21

22. Startup
Lifecycle
22

23. Startup
Lifecycle
&
Team
Dynamics
Geeks Cash
Friends
23

24. Dynamics
in
Startups
Never
equals,
always
leadership
roles
early
on
People
choose
to
be
in
first
or
in
second
row
Role
assignment
along
social
skills,
formal
skills
and
experience
CEO
oNen
not
shareholder
#1
Key
differenIaIon:
management
role
VS.
shareholder
24

25. We
will
rock
the
World!

26. Not
them...
Ycombinator Alumni
broke
MBA Stanford
Rich parents put in $50k
Excellent with people
Technical University
Had idea, built prototype
HTLM5 Guru Driven by solving problems
1st time founder No startup experience
Not very social

27. Not
them...
Ycombinator Alumni
broke
MBA Stanford
Rich parents put in $50k
Excellent with people
Technical University
Had idea, built prototype
HTLM5 Guru Driven by solving problems
1st time founder No startup experience
Not very social
CTO CEO CxO
40% 40% 20% 27

28. Not
them...
80h / week
10 other joboffers
Put in another 50k
No sales traction
No salary
Loves it
Happy that no one disturbs
Starts to look around No girlfriend quest for solution

29. Not
them...
Finally a salary and some
YES!
Reputation
Coolness Mildly interested
more Engineers!
Path to fame

30. Not
them...
Seen as
New role „brain behind“
2nd tier gone New Chief Architect
+ new CEO 30

31. 10% 5% 10%
31

32. And this is just the beginning.....
32

33. The
Deadly
Triangle
Relationship
Team role Founder role
Constant
change
&
insecurity
in
all
three
parameters
EmoIons
and
personal
stakes
run
high
-­‐>
high
risk
of
escalaIon
External
influences
increasingly
dominant:
market,
investors,
product
Underlying
„cooperaIon
contracts“
will
change
over
Ime
All
this
requires
enourmous
stress
resilience
for
founder/CEO
33

34. Leadership
Challenges
CooperaIon
contracts
change
with
Ime
(and
age
of
founder)
High
level
of
unertainty
produces
enormous
stress
levels
AcIve
&
reacIve
phases
require
different
types
of
leadership
skills
Different
types
of
pressure
situaIons
require
different
levels
of
personal
discipline
Keeping
emoIonal
Ies
with
all
stakeholders
is
key
Required:
very
high
level
of
self
conficence,
bordering
to
ignorance/narcissm
while
keeping
flexible
in
mind
&
open
to
new
ways
-­‐
art
of
entrepreneurship
34

35. What
can
be
learned
from
startups?
Keep
units
small
Keep
them
working,
let
them
fail
themselves
Offer
incenIves
that
mamer
AuthenIcity
&
Freedom
Treat
them
as
counterparts,
not
as
resources
35

36. thanks!
Oliver
Holle,
CEO
Speedinvest
+4369913205532
oliver@speedinvest.com
Twimer:
@oholle
www.speedinvest.com