1. Building and Managing a Winning Team Creating Your Ideal Team Copyright © 2011 Nelson Education Ltd.12-1 chapter 1212 Prepared by Ron Knowles Algonquin College & Jennifer Rouse Barbeau Canadore College

2. Chapter Overview Chapter 12 will:  Develop your leadership strategy.  Chart your organizational structure.  Prepare you to organize and manage your business.  Develop a team that shares your vision and enthusiasm.  Prepare the management and personnel sections of your business plan. Copyright © 2011 Nelson Education Ltd.12-2 chapter 1212

3. Learning Opportunities  Understand the basic management functions of leading and organizing.  Chart your organizational structure.  Consider the benefits of a virtual or network organization.  Evaluate the skills that you and the members of your founding team possess.  Understand the value of an advisory board and external advisors. Copyright © 2011 Nelson Education Ltd.12-3 chapter 1212

4. Learning Opportunities  Take another look at yourself and identify your strengths, weaknesses, and business needs.  Use the idea of balance to brainstorm your ideal team and scout potential team members.  Develop an action plan with your new team before you open the doors.  Consider the merits of the just-in-time team, partnerships, leased employees and the independent contractor or associate.  Recognize the need for a mentor.  Learn how to hire your first employee. Copyright © 2011 Nelson Education Ltd.12-4 chapter 1212

5. What is Leadership? Motivating others to do what is expected of them because they believe in what you are doing and share your vision. Transformational leaders inspire exceptional performance through:  Visioning  Inspiring  Stimulating  Coaching  Team-building Copyright © 2011 Nelson Education Ltd.12-5

6. Organizing The organizing function deals with these questions:  What tasks are to be done?  Who does them?  Who reports to whom? Copyright © 2011 Nelson Education Ltd.12-6

7. Organizing Two broad types of organizational structures are:  mechanistic  organic “organic” Your small business will need an “organic” business structure because the new business environment demands:  Innovation  Proactivity  Risk taking Copyright © 2011 Nelson Education Ltd.12-7

8. Mechanistic Structure This structure consists of:  Highly structured channels of communication.  Uniform and restricted operating styles must be.  Decision-making based on management authority.  Reluctant adaptation.  Emphasis on formal procedures.  Tight control systems.  Constrained on-the-job behaviour.  Superiors making decisions. Copyright © 2011 Nelson Education Ltd.12-8

9. Organic Structure This structure consists of:  Open channels of communication.  Operating styles allowed to vary freely.  Decision-making authority based on expertise.  Free adaptation to changing circumstances.  Emphasis on getting things done.  Loose, informal control with emphasis on co-operation.  Flexible on-the-job behaviour.  Participation and group consensus. Copyright © 2011 Nelson Education Ltd.12-9

10. Chart Your Organizational Structure: Functional Approach Owner/ General Manager Team Leader, Kitchen Team Leader, Service Kitchen StaffService Staff Bookkeeper Copyright © 2011 Nelson Education Ltd.12-10

11. Owner Head Sales, Toronto Head Sales, Vancouver Head Sales, Halifax Copyright © 2011 Nelson Education Ltd.12-11 Chart Your Organizational Structure: Geographic Approach

12. Owner Team Leader, Industrial Team Leader, Government Team Leader, Retail Copyright © 2011 Nelson Education Ltd.12-12 Chart Your Organizational Structure: Customer-Driven Approach

13. Virtual Structure Benefits of a virtual or network organization:  Customer-driven  Flexible  Relies on mutual trust and teamwork  Promotes supplier competition  Delegates selling duties to selling agents, not staff  Offers a web of associates or partners  Relies on outside expertise Copyright © 2011 Nelson Education Ltd.12-13

14. The Founding Team Three areas you should focus on are :  Management team profiles and ownership structure. Identify the people who are capable of assuming management roles when necessary.  Board of directors or advisory board. Think about forming a board of advisors that provides true guidance and advice to your company.  Human resources requirements Think about employees or independent associates your business may need and what their functions will be. Copyright © 2011 Nelson Education Ltd.12-14

15. Balance Your Team You cannot do everything yourself. You’ll need a team with different skills & personalities. The key is balance. Begin with a self-assessment  Revisit your entrepreneurial assessment (Chapter 1) and your values (Chapter 3).  Complete the personality tests listed in Box 12.3, or Appendix 12.1.  Complete Action Step 53. Copyright © 2011 Nelson Education Ltd.12-15

16. The Just-In-Time Team Merits of the just-in-time team include: 1. 1.Partnerships 1.Joint ventures 2.Strategic alliances 2. 2.The independent contractor or associate 3. 3.Employee leasing Copyright © 2011 Nelson Education Ltd.12-16

17. Get a Mentor For independent business, mentoring is:  A mutually beneficial partnership between a more experienced entrepreneur or businessperson and an entrepreneur who is in the start-up phase. Qualities of an effective small business mentor: A desire to help Positive past experience A good business reputation Time and energy to help Up-to-date knowledge in the field A learning attitude Demonstrated managerial & mentoring skills Copyright © 2011 Nelson Education Ltd.12-17

18. Hiring Your 1st Employee Before you hire your first employee, self-analyze: Is hiring staff consistent with your values and passion? Do you have what it takes to manage people? Can you effectively:  Lead?  Organize?  Control?  Communicate?  Work in a team environment? Copyright © 2011 Nelson Education Ltd.12-18

19. Hiring: Basic Steps When you hire, you will have to consider:  Job analysis  Job qualifications  Job requirements  Staffing decisions:  recruitment  employee selection  training/development  compensation Copyright © 2011 Nelson Education Ltd.12-19

20. Select Wisely Consider all the costs associated with hiring, training and retaining your employees. An employee can cost an extra 60% of his or her salary These additional costs include:  Ad placement  Indirect compensation (e.g. vacation pay, employment insurance, CPP, workers’ compensation)  Space, furniture and equipment  Additional management time So…Select Wisely! Copyright © 2011 Nelson Education Ltd.12-20

21. Chapter 12 helps you prepare Parts F & G of your business plan:   Management & Personnel Copyright © 2011 Nelson Education Ltd.12-21 Business Plan Business Plan Building Block

22.   What major human resource issues does your business face, and how does your plan address these issues?   Have you included an employment schedule and wage costs in the appendix of your business plan?   Have you allowed for benefits in your labour plan?   Do you have job descriptions in place and plans to conduct annual performance appraisals? Copyright © 2011 Nelson Education Ltd.12-22 Your Business Plan Checklist for Your Business Plan

23.   Do your wage rates fit within the industry norms?   Outline your leadership style and your strengths and weaknesses.   How might a “virtual organization” work for you?   If you are starting out, at what point will you add a second or third person? Copyright © 2011 Nelson Education Ltd.12-23 Your Business Plan Checklist for Your Business Plan

24. Management & Teamwork at MSM Success at MSM strongly related to the founding partners’ teamwork, leadership and organizational skills. Answer Chapter 12 case study questions to learn:  How the personality types & leadership style of the founding partners contributed to their company’s success.  What leadership style you will use for your business.  What type of organizational structure helped MSM grow and prosper.  What Mike McCarron believes are the ways to improve partnership relationships.  What advice McCarron offers when it comes time to hire new staff members. Copyright © 2011 Nelson Education Ltd.12-24 Case Study