1. Sustainable Technology Entrepreneurship for Scientists and Engineers Anthony Marchese, Dept. of Mechanical Engineering WEEK 15: THE NEW ENTERPRISE ORGANIZATION

2. Readings for today  Thomas Byers, Technology Ventures, 2010  Chapter 12 “The New Enterprise Organization”

3. The New Venture Team (i.e. the founders) The Two Pizza Rule Jeff Bezos, Founder of Amazon.com argues that team size should follow the “two pizza rule”: just 2 pizzas should feed the entire team (i.e. 2 to 6 people).

4. The New Venture Team (i.e. the founders) Envirofit: Willson, Hudnut, Lorenz, Bauer Apple: Jobs (charismatic leader) Wozniak (engineering leader), Markkula (business and marketing) Sprig Toys: Abound Solar:

5. Characteristics of Effective Teams 1. All members share leadership and ownership 2. Communication is continuous 3. Tasks and purposes are well understood 4. People listen to each other 5. Most decisions are reached by consensus 6. Feedback on performance is frequent 7. Division of tasks is clear 8. Collaborative effort is the norm 9. Rely on each other and hold each other accountable

6. Leadership Supporting Coaching DelegatingDirecting Supportive Behavior (helping) Directive Behavior (Telling How) low high low

7. Leadership Supporting Coaching DelegatingDirecting Supportive Behavior (helping) Directive Behavior (Telling How) low high low Target Area

8. Seven Traits of Leaders 1. Authenticity. Consistent actions and words 2. Decisiveness. Willing to act on imperfect information 3. Focus. Create a priority list and stick to it. 4. Care. Build relationships and social capital 5. People Skills. Offer feedback and coaching to team members. 6. Communication. Stimulate conversation and communicate vision. 7. Continuous Improvement. Keep learning and energy flowing within the firm and retain optimism.

9. Board of Directors vs. Board of Advisors A Board of Directors is a group composed of key officers of a corporation and outside members responsible for general oversight of the affairs of the corporate entity.  Overseer of corporation  Select and approve appointment of CEO and other officers  Fiduciary responsibility: legal duty to act in the best interests of the corporation and its stockholders. A Board of Advisors is a group that might be formed to provide the firm with advice and contacts.  Members should have extensive skills and knowledge of field (technology or business)  Non-fiduciary and does not engage in legal or official actions of the corporation.  Free from liability.

10. Examples of Boards of Directors Solix Biosystems Ventria Biosciences Firefly Medical

11. Organizational Design The 9 Elements of an Organization 1. Mission and vision 2. Goals and objectives 3. Strategy 4. Capabilities and resources 5. Processes and procedures 6. Talent 7. Leadership and management 8. Shared values and culture 9. Structure and Style

12. Organizational Design The 9 Elements of an Organization 1. Mission and vision 2. Goals and objectives 3. Strategy 4. Capabilities and resources 5. Processes and procedures 6. Talent 7. Leadership and management 8. Shared values and culture 9. Structure and Style Elements of Organizational Design

13. 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.

14. Closing Remarks: Strength of a Team Strength of a Team: Vinod KhoslaVinod Khosla