Chapter 6 Venture Team Building and Organizational Plan
Post on 03-Jun-2018
268 Views
Preview:
Transcript
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
1/21
Chapter 6
Venture Team Building and Organizational
Plan
1Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
2/21
Learning Objectives
To understand the importance of venture team in the success
of a venture.
To understand the meaning and implication of effective teammanagement.
To know about the precautions that need to be taken for team
building for venture and how to take care of those factors.
To learn about the factors that result in lack of understanding
amongst the co-founders of a venture.
Contd2Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
3/21
Learning Objectives
To learn about common attributes of an effective venture
team.
To understand the process of developing a venture team.
To learn about importance of managing people to build
effective teams.
To learn about different types of organizational structures and
their relevance to different types of ventures during different
stages of growth. To learn about importance of organizational
structure, and systems and procedures for managing a venture.3Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
4/21
Importance of Effective Team for Venture
Success
More than an idea what matters, is the effective, harmonioustrustworthy, competent team that leads to success in anentrepreneurial venture.
Entrepreneurial team with an entrepreneurial leader andquality of the team is a key ingredient in the higher potentialventure.
Founding members of a venture need to have a clear goal andworthwhile idea.
Although each team member has a unique role andcontribution but it needs to be synergized with the role of theothers.
Contd
4Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
5/21
Importance of Effective Team for Venture
Success
Building a professionally backed-up winning team goes a long way inachieving dynamism and success.
Building high potential ventures without the backing of a strong and
cohesive team is not possible.
Team building process starts with objective and honest assessment ofthe strengths and weaknesses of team members to identify the gapsto be filled in by inducting new people in the team as employees or
co-founders.
Core team should consist of complementary competencies andknowledge.
5Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
6/21
Effective Management TeamKey to
Venture Success
Board of
Directors
Chief Executive
Officer
Effective
Management Team
High Growth
Successful
Ventures
Banks, Seed Funders, Venture Capitalists, Financial
Institutions
6Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
7/21
Business Plan Success Depend Upon
Committed Team
Genuinely Committed
Team Members
Having Diversified
Competencies, Skillsand Other Resources Business Plan Success
It is important to realize that business of business is business and therefore
any money, time and effort put into it has to be viewed on business lines
rather than charity.
7Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
8/21
Reasons for Business Failures
Lack of Understanding Amongst Co-founders arises on Account of Lack orNo Documentation
Goals/ Objectives Participation
Role andResponsib-
ilities
Sharing Loss/ GainProcess to Deal
with Differences
8Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
9/21
Common Attributes of Effective Teams
Attributes ofEffective Teams
Clear Expectationand Context
Commitment toPurpose and Values
Competence
Communication,Coordination and
Collaboration
CreativeInnovation
ConsequencesSharing
Control
Cultural Change
Teams outperform individuals, especially when performance requires
multiple skills, judgments, and experiences.
Jon R Katzenbach
9Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
10/21
Venture Team Development
Need for Partners
Where to find partners?
How to choose the best one(s)?
How to convince them to become a part of the core team?
Issues to be Resolved for Inducting Partners
10Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
11/21
People ManagementKey to Venture
Success
Principles of
Managing
People
Employees are fulcrum of business
Hire people with adaptability and attitude
Inspire, motivate and enable them to deliver
excellence
Be transparent and open with your employees
Respect and treat employees as equals
Encourage employees to take initiative
Remove employees, as and when becomes
necessary
11Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
12/21
Tips for Employees Management
Guru Guide to Entrepreneurship by Boyett and Boyett based on
the advice from leading entrepreneurs has proposed three
ways to treat employees as equals:
Get rid of executive limos and executive parking spaces.
Eliminate executive dining rooms, executive bathrooms, and
exclusive executive offices.
Dont employ receptionists, executive secretaries, personal
assistants, or other support staff.
12Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
13/21
Organizational Structure
People
Systems and
ProcessesStructure
Business Environment
Growth Plans of the Company
13Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
14/21
Nature of Organizational Structure
Organization
Small
Business
Large
Companies
Simple, Lean, Flexible
Organizational Structure
Formal, Large and Complex
Organizational Structure
14Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
15/21
Flat OrganizationsAdvantages
Open communication between employees
Close relationships with each other
Less bureaucratic
Quick decision making
Better to build teams
Less cost on account of higher productivity up to a particular point
of production
Highly innovative
15Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
16/21
Designing Organizational Structure
ReportingRelationships
OperationalRelationships
Arrangements of
Jobs or Group ofJobs
FunctionalRelationships
Achievement of Organizational Goals in Most Effective
and Efficient Manner
16Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
17/21
Requirements of Effective Organizational
Structure
Identifying specific vital tasks/functions.
Identifying right people to perform those functions.
Explaining it to each and every employee, what his role will be.
Organization should develop objective criteria to measure the
performance of its employees without being biased or unfair to
any employee.
No concentration of power in the hands of a few executives, as
this may lead to grouping and reduced quality output.
To have optimum number of employees in each department.
17Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
18/21
Factors to be Considered by Small Business Owners
for Organizational Structure
Relative strengths and weaknesses of various organizationalforms.
Legal advantages and disadvantages of organizational structure
options.
Advantages and drawbacks of departmentalization options.
Likely growth patterns of the company.
Reporting relationships that are currently in place.
Contd18Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
19/21
Factors to be Considered by Small Business Owners
for Organizational Structure
Reporting and authority relationships that you hope will beimplemented in the future.
Optimum ratios of supervisors/managers to subordinates.
Suitable level of autonomy/empowerment to be granted to
employees at various levels of the organization (while still
recognizing individual capacities for independent work).
Structures that will produce greatest worker satisfaction.
Structures that will produce optimum operational efficiency.19Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
20/21
Types of Organizational Structure
Informal structurehas lot of flexibility and openness, and is most suitable
for startup ventures having few people who are highly committed and selfdirected to the organization.
Functional organizational structure is suitable when the organization is
small in terms of number of employees as well as operations, geographically
centralized, and provides few goods and services.
Divisional structure helps in overcoming problems associated with relativelylarge size of employees and operations, geographically dispersed activity,
and company starts delivering wide range of goods/services to the
customers.
Matrix structure helps in grouping employees by both function and product.
It attempts to derive the advantage of both separate structures.
20Prof. Dev B. Koli @ SIBM; Mumbai, 2014
8/12/2019 Chapter 6 Venture Team Building and Organizational Plan
21/21
Advantages of Systems and Procedures
Systems and ProceduresAdvantages
Undertakes VariousTasks with
Consistency
Optimum ResourceUtilization
Compliance toAccounting, Legal
and OtherStipulations
Backed-up by Appropriate Manuals and Forms
21Prof. Dev B. Koli @ SIBM; Mumbai, 2014
top related