Technology Ventures: From Idea to EnterpriseChapter 12: Summary How can entrepreneurs best organize and reward the people who will lead their venture to success? Early in the development of a firm, a leadership team is created to build a business plan and organizational plan. The organizational plan is structured to align the culture of the firm with its goals and values. Summary Two people working as a team will produce more than three working as individuals. Charles P. McCormick The New Enterprise Organization 12

Chapter 12: Team Team: a few people with complementary capabilities who are committed to a common objective, goals, and approach for which they hold themselves mutually accountable. The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Table 12.1 Nine Elements of An Organization 1. The Mission and Vision 2. The Goals and Objectives 3. The Strategy 4. The Capabilities and Resources 5. The Processes and Procedures 6. The Talent (People) 7. The Leadership Team and Management 8. Shared Values and Culture 9. The Structure and Style The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Leadership Leadership is the process of influencing and motivating people to work together to achieve a common goal by helping them secure the knowledge, power, tools, and processes to do so. The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Table 12.3 Leadership of Routine and Adaptive Work A Leader's Role in: Routine IssuesChallenging and Adaptive Work DirectionDefine problems and possible solutions Define the challenges and the issues Team and Individual Responsibilities Clarify and define roles and responsibilities Define and discuss the necessity to adapt roles and responsibilities to changing needs ConflictRestore order and reduce conflict Accept useful conflict and use it to define new approaches and strategies Norms and ValuesReinforce norms and values Reshape norms and values Teaching and Coaching Training and skill learning for existing employees Teaching and coaching new people The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Table 12.4 – 7 traits of leaders (Collins and Lazier, 1992) The Seven Traits of Leaders Authenticity – consistent actions and words Decisiveness– willing to act on limited, imperfect information Focus – create a priority list and stick to it Care – build relationships and social capital People Skills – offer helpful feedback and good coaching to all team members Communication – stimulate conversation and communicate vision Continuous Improvement – keep learning and energy flowing in the firm, retain optimism Adapted from Collins, 1992 The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Management Management is a set of processes such as planning, budgeting, organizing, staffing, and controlling that keep an organization running well. The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Table 12.6 – Emotional intelligence The Four Elements of Emotional Intelligence Self-awareness of one’s emotions, emotional strengths and weaknesses, and self-confidence. The ability to read your own emotions. Self-management of honesty, flexibility, initiative and optimism and emotional self-control. The ability to control your emotions and act with honesty and integrity. Social awareness of empathy, organizational currents and recognition of the needs of followers and clients. Relationship management is the ability to communicate through inspiration, influence, catalyst, conflict management and collaboration. The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Organizational Culture Organizational culture is the bundle of values, norms, and rituals that are shared by people in an organization and govern the way they interact with each other and with other stakeholders. The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Social Capital Social capital consists of the accumulation of active connections among people in a network. Social capital refers to the resources available in and through personal and organizational networks (Coleman, 1990) The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Principle Effective leaders coupled with a good organizational plan, a collaborative performance- based culture, and a sound compensation scheme can help align every participant with the goals and objectives of the new firm. The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Exercise Your team is forming a company to create interactive electronic computer games for children 8-11 years old. Describe the value proposition of this firm and select a leader of the team. Describe the culture and the initial structure of the organization. The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: Venture Challenge VENTURE CHALLENGE 1)Describe the team and the organizational arrangement for your venture. 2)Discuss your plans to build a board of directors and a board of advisors. The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise

Chapter 12: DVD Videos DVD Videos “The Strength of a Team” Vinod Khosla (KPCB) “Forming the Founding Team” Kim Smith (New Schools Venture Fund) The New Enterprise Organization 12 Technology Ventures: From Idea to Enterprise