1. TEAM DEVELOPMENT Through the Life-Cycle of the Technology Enterprise TEAM DEVELOPMENT Through the Life-Cycle of the Technology Enterprise

2.  “Building strong business fundamentals through excellent people practices”  Integral part of Silicon Valley since 1983  Involved with 200 start-ups  Business approach focused on tools and techniques ABOUT LARCEN STRAYER

3.  Overview the basics of team development  Frame the start-up life-cycle  Identify the challenges inherent in each stage of the cycle  Review strategies for building effective teams through each stage AGENDA

4.  Communicate openly and freely  Provide each other with open, direct feedback  Hold each other accountable  Manage time and effort productively  Fully utilize diverse strengths, styles, points of view  Define and follow decision making guidelines  Manage conflict effectively CHARACTERISTICS OF HIGH PERFORMING TEAMS

5. Team Development Process FORMING style values/philosophy roles STORMING feedback rules of engagement power NORMING expectations of leaders interdependencies PERFORMING Stage 1 Membership Stage 2 Sub-Grouping Stage 3 Confrontation Stage 4 Individual Differentiation Stage 5 Collaboration

6.  Recognize and plan to the inevitability of the cycle  Devote time to team development activities  Identify and immediately address team issues  Set and enforce constructive team norms  Readdress team development with any change in team composition  Don’t tolerate the “prima donna” syndrome KEYS TO CREATING HIGH PERFORMING TEAMS

7. Build the Organization Satisfy the Customers Mature Adult Emerging Adult Adolescence Childhood Infancy Boredom! Survival! Complete the Product Clarify the Idea STARTUP LIFE CYCLE

8. CHARACTERISTICS OF CHILDHOOD  Like a 2-year-old -- into everything  Success and arrogance  See no problems -- only opportunities  Every opportunity is a priority  No systems, no policies, no control  Planning by wishful thinking  Founder struggles with delegation  Founder first to violate rules and policies

9. CHILDHOOD -- COMMON TEAM ISSUES  Lack of diversity of skills and points of view (focus on product development)  Founder team resistance  “Group think” if all come from same company  CEO hiring his friends rather than to needs  “Morphing” roles

10. CHILDHOOD -- RECOMMENDED TEAM ACTIVITIES  Clarify vision, values and “rules of engagement”  Agree upon and enforce standards for accountability  Define a common vision for leadership  Create clear descriptions of roles (and how they may change with growth)  Set an expectation for ongoing assessment, feedback and development  Reserve time devoted to team-building

11. CHARACTERISTICS OF ADOLESCENCE  High turnover, complaints from senior leaders  Oozing strategy -- still highly opportunistic  Chaotic, overwhelmed -- not focused on priorities  Constant change in roles  Rebellion against beginning structure  Senior managers still doing too much “hands on” -- need to build next level management

12. ADOLESCENCE -- COMMON TEAM ISSUES  Additions to leadership team result in narrowing roles  Jobs may outgrow skill levels of initial executives  Size and complexity of business require narrowing of involvement in decision-making  CEO transition may result in style change  VP’s (individually and as a team) must move into more strategic role

13. ADOLESCENCE -- RECOMMENDED TEAM ACTIVITIES  Make sure structure continues to track to evolving vision  Clearly define new roles before hiring new members of team  Support individuals and team in clarifying changes in roles  Proactively address changes in decision-making involvement  Continue to expect ongoing assessment, feedback and development  Continue to devote time to teambuilding, addressing the need to “re-form” with new members  Pay attention to building functional and cross-functional teams

14. Cross Functional Planning Develop and align around strategic plan Create framework for monitoring functional performance Identify/address infrastructure needs Cross Functional Planning Develop and align around strategic plan Create framework for monitoring functional performance Identify/address infrastructure needs Mature Adult Emerging Adult Adolescence Childhood Infancy Effective Functional Team Leadership Functional support of product introduction Plan for scaling function Identify/prioritize skill/headcount needs Effective Functional Team Leadership Functional support of product introduction Plan for scaling function Identify/prioritize skill/headcount needs LEADERSHIP TEAM Plan for Growth Develop growth strategy Instill discipline Build next level of leaders Plan for Growth Develop growth strategy Instill discipline Build next level of leaders

15. SIGNS OF TROUBLE  Turf battles  High turnover/complaints from senior leaders  Lack of visibility/plan from each function  Unclear roles/boundaries  Tolerance of “prima donna” behavior  Lack of cross-functional goal alignment  No clear successors or next level managers identified

16. DELIVERING RESULTS AND PREPARING THE MARKET IPO M & A STRATEGIC PARTNERS DELIVERING RESULTS AND PREPARING THE MARKET IPO M & A STRATEGIC PARTNERS BUILDING THE CROSS-FUNCTIONAL TEAM BUILDING THE CROSS-FUNCTIONAL TEAM Mature Adult Emerging Adult Adolescence Childhood Infancy DRIVING THE TECHNICAL TEAM FOUNDER GROUP DOMINANCE FOUNDER GROUP DOMINANCE CEO ROLE

17. SIGNS OF TROUBLE  High turnover, complaints from senior leaders  Company is focused on short-term transactions rather than long terms strategies  Frequent tension/conflict between CEO and Board  Lack of credibility with investors  Ineffective recruitment of senior leaders  Lack of communication/understanding of vision  Dysfunctional culture