9 - 1 Traits Characterizing Rapidly Growing Companies High levels of change, ambiguity, and uncertainty Ongoing succession of nonlinear and nonparametric events Inexperience of management team Rapid Growth and Disruptive Technology Counterintuitive, unconventional patterns of decision- making Informality and fluidity of organization structure and procedure

9 - 2 Characteristics of Successful Leaders Entrepreneurs skilled in leadership, vision, and influence Skillful in creating clarity out of confusion, ambiguity, and uncertainty Able to define adroitly and gain agreement on who has what responsibility and authority Manage in a way that builds motivation and commitment to cross-departmental and corporate goals, not just parochial interests

9 - 3 Characteristics of Successful Leaders Entrepreneurs skilled at helping, coaching, and conflict management Creatively handle conflicts, generate consensus decisions, and share power and information Recognize that high-quality decisions require a rapid flow of information in all directions Accept that knowledge, competence, logic, and evidence need to prevail over official status or formal rank in organization

9 - 4 Characteristics of Successful Leaders Entrepreneurs skilled at teamwork and people management Encourage innovation and calculated risk rather than by punishing or criticizing whatever is less than perfect Expect and encourage others to find and correct their own errors and to solve their own problems Make heroes out of other team members and contributors Generate trust among colleges and subordinates Perceived as honest and direct, open and spontaneous

9 - 5 Key Questions for the Lead Entrepreneur/Founder Is formation of a team desirable or necessary? Do I want to grow a higher potential company? What talents, know-how, skills, track record, contacts, and resources are currently available? What is needed to succeed? Who is needed to complement me?

9 - 6 The Key to Growth Team traits Cohesion Teamwork Integrity Commitment to the long haul Harvest mind-set Commitment to value creation Equal inequality Fairness Sharing of the harvest

9 - 7 Other Leader Competencies Entrepreneurial Leadership Problem solving Communications Influence skill Decision-making Project management Negotiating Managing outside professionals Human resources administration

9 - 8 Entrepreneurial Influence Skills Interpersonal/teamwork skills Ability to create, through management, a climate and spirit conducive to high performance Ability to understand the relationships among tasks and between the leader and followers Ability to lead in those situations where it is appropriate

9 - 9 Other Leader Competencies Marketing Market research and evaluation Marketing planning Product pricing Sales management Direct selling Service management Distribution management Product management New product planning

Other Leader Competencies Operations/Production Manufacturing management Inventory control Cost analysis and control Quality control Production scheduling and flow Purchasing Job evaluation

Other Leader Competencies Finance Raising capital Managing cash flow Credit and collection management Short-term financing alternatives Public and private offerings Bookkeeping, accounting, and control Other specific skills

Other Leader Competencies Information Technology Information and management systems tools. Business to business, business to consumer, business to government, all via the Internet Sales, marketing, manufacturing, and merchandising tools. Financial, accounting, and risk analysis and management tools. Telecommunications and wireless solutions for corporate information, data, and process management.

Other Leader Competencies Law and Taxes Corporate and securities law Contract law Law relating to patent and proprietary rights Tax law Real estate law Bankruptcy law

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Common Pitfalls Do not use the “honeymoon” period of start-up advantageously Do not answer the questions of who is in charge, who makes the final decisions, and how real differences of opinion are resolved Do not address or recognize the deficiencies of the lead entrepreneur or the management team

Common Pitfalls Do not recognize that creating and building a new venture is a dynamic process Do not identify and defuse destructive motivations of investors, prospective team members, or the lead entrepreneur Do not value trust and integrity

Slicing the Founder’s Pie How much stock ownership should go to whom? Share the wealth with those who help to create the value and thus the wealth Realize a harvest of at least 5 to 10 times the original investment Make sure the company prospers and grows thus creating a huge, shared pie

Consideration of Value Idea Business plan preparation Commitment and risk Skills, experience, track record, or contacts Responsibility