Posts in "Teams"

5 Steps to Assess a Business

“Strategy is not just a plan, not just an idea; it is a way of life for a company. Strategy doesn’t just position a firm in its external landscape; it defines what a firm will be.” Cynthia A. Montgomery

As a business owner one needs to continually assess one’s own company as well as those of the competition. It is essential to have the ability to look at the larger picture and see what is working, and what is not. If you are younger start-up company looking to raise money, or attract potential team members, you need to have well thought out answers to key questions which will be asked. Listed below are five key questions which I believe every business owner must be able to answer.

1. Why does your organization exist?: To answer this question, one needs to have clear understanding of the problem the organization is wanting to solve and how it plans to do that. The answer needs an opening sentence which has the ability to get the other person interested instantly, and wanting to know more about the business. To read more about answering this question please click here.

2. What is your competitive edge?: This question requires you to identify three main components, customer needs, competitor capabilities and your own organizational capabilities. This will help to clearly identify the space your organization is going to be operating in, and your customer value proposition. To read more about the answering this question please click here.

3. What is your business model?: In essence this question is asking how your business makes money. The answer to this question requires you to clearly pin point your target market, financial estimates, scalability and originality. All assumptions and forecasts used in the answer must be based on extensive research. Investors see far too many hockey stick projections, without substantial evidence of how and why demand will pick up to reach those estimates. To read more about answering this question please click here.

4. How do you acquire customers?: The answer to this question is all about your marketing strategy.  Clearly outline metrics used to measure performance, market positioning and price point strategies. These objectives and strategies need to be translated into executable tactics through your promotional campaigns. Avoid using generic answers when answering this question and focus on key metrics you  want to achieve, and how. To read more about answering this question please click here.

5. Who is on your team?: This question requires you to tell the assessor the business plans for execution. The answer to this question is I believe, by far the most important aspect of assessing a business. One needs to mention the teams past experience, achievements, leadership examples and responsibilities. Highlight strengths and how they will be used to help reach your target goals. To read more about answering this question please click here.

One needs to have the answers to these questions, always prepared. They require much initial hard work and research,  the benefits however, far outweigh the time spent on them. One needs to remember to be clear, concise and confident when answering these question. It is all about passion for the business and the industry one operates in. This passion must be conveyed when talking about one’s organization. In the end if the story makes sense, numbers are fairly correct and you have managed to assemble a talented team, success is closer than you think.

Who is on your team?

“The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don’t play together, the club won’t be worth a dime.” Babe Ruth

The success of any startup depends on the quality of the team executing the plans. It comes down to having a team who complements each others strengths and weaknesses, has the ability to work cohesively together and most importantly, has the same core beliefs and values. To communicate this to a potential investor or assessor of the business, requires a deep understanding of oneself and one’s team mates. A clear segmentation of the roles each person will be playing and why that particular person has been chosen for that role is essential.

The answer to this question should include reference to the following:

1. Experience: The first things which needs to be established is the team’s past experience and achievements. This will assist an understanding of where they are coming from and whether they have the required understanding of the market and skill set they will be responsible for. Wherever possible, support your answer with specific details including return on investments (ROI), market share growth, sales figure or any industry rewards and recognition achieved. Past tangible results need to be highlighted.

2. Leadership: This point needs to be stressed to showcase  possession of the necessary skills to lead and motivate a team. Highlight experience, responsibility and motivational skills from the past. Forward looking investors need to know whether an individual has the ability to motivate a team during hard times, and push them further when things are going well.

3. Roles & Responsibilities: From the very beginning there should be clear allocation of responsibilities. Even though at the beginning everyone has to wear multiple hats, it is important that they are responsible for the part of the business where their strongest skill set is used.

The points mentioned above highlight some key areas to develop answers around. Ultimately, investors invest in teams, not business ideas. Use this opportunity to promote your team as much as possible. Be clear, concise and focus on results and tangible evidence of the team’s great ability to work well together.

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Steps to create a winning team

Tackling the Issue

“In a conflict, being willing to change allows you to move from a point of view to a viewing point — a higher, more expansive place, from which you can see both sides.” Thomas Crum

Proceeding with actual negotiations after laying down a comprehensive foundation for determining the facts and establishing ground rules, makes the exercise easier. With a set agenda, each party is fully aware of what will be discussed. The negotiation stage is a a critical one in conflict resolution. Without each party making the effort to bring the issue to the table, and discuss it candidly, very little progress is possible. Once the concerned individuals have made the effort to come together, and discuss the issue at hand, it is important to keep the discussion moving in a focused and objective matter. 

Key points to be kept in mind at the negotiation stage are:

1. Remaining Open: It is quite natural to close one’s mind to the other person’s point of view in a conflict. If such a stance is taken however, to reach a mutually agreeable decision will be a difficult and long process. Therefore, it is essential in such a situation, to not just remain open to the other party’s point of view, but the larger picture as well. 

2. Developing of Options: When a conflict is being negotiated, it is important that each side offers possible options to resolve the matter at hand.  I have been involved in conflict resolution, where the discussion revolves only around options which are not acceptable to either side. Therefore, being creative in the development of options is vital, as is abstaining from judging or criticizing them.

3. Notes: In the heat of discussions, we tend to lose track of what was said. This only complicates matter further. During the negotiation stage, it is hence vital, that notes about major agreements, disagreements, options and any other important piece of information are taken down, this will help in resolving the matter at hand.

These pointers are cornerstones to keep negotiations open and healthy. They may be very simple steps, but they have been extremely helpful to me when I have been involved in negotiating conflicts. In the end, it comes down to keeping things simple and straightforward. It is only when we complicate issues, with more details or people, do they become more of a challenge to resolve.

Setting the Stage

“Instead of suppressing conflicts, specific channels could be created to make this conflict explicit, and specific methods could be set up by which the conflict is resolved.” Albert Low

Most times there is no formal process on how a conflict is supposed to be resolved. Although setting up stringent structures can be stifling in an organization, it can streamline processes and make them more efficient. My thinking has shifted over time, from a loosely managed structure to a more defined one. The reason for this fundamental shift is due to the fact that entrepreneurial teams often consist of very strong personalities. When individuals or groups with strong personalities entangle in a conflict, one can expect a fair share of fireworks. Tackling this with set structures in place, helps facilitate such situations, as also controlling the external impact of such conflicts. 

Listed below are a couple of primer steps to help set the stage before the actual negotiations begin:

1. Ground Rules: It is important to set strict guidelines, to keep the negotiation stage as civil as possible. T Controls on language, tone of voice and relevance to the discussions are essential. Usually, if uncontrolled, irrelevant examples are brought into arguments, making conflict resolving more challenging. Keeping strict focus on the issue at hand in a healthy environment is vital.

2. Agenda: Before affected individuals or groups are called in for negotiations, an agenda needs to be developed to ensure that all the key issues will be discussed. Through this, both individuals can be given adequate time to share their points of views. By formalizing the structure of negotiations, they become more effective and relevant to the issue at hand.

3. Organization: Adequate notice needs to be given to the concerned individuals about the time and venue of the negotiations. The location must be set in a neutral space, where neither side will feel vulnerable or uncomfortable. This is an important step to ensure a smooth and natural flow in the discussions. At the negotiations, minutes or notes must be taken of all discussions and possible conclusions.

4. Mediator: If the issue at hand has escalated to a higher intensity level, it may be necessary to bring in a mediator or facilitator for the negotiations. This will provide unbiased mediation to help keep the negotiations on track and provide objective analysis. Both individuals must agree on the negotiator  to ensure a comfort level.

By following the above steps, expectations may be set prior to the negotiations. The affected parties will have a clearer idea of what will be discussed and how the negotiations will be facilitated and managed on the day itself. It makes the entire negotiation process more efficient and transparent, which in turn can help resolve the conflict as soon as possible.

 

Know the Facts

“At the root of every conflict is a commitment not honored, an idea not realized and an opportunity misunderstood.” Dr. J M Sampath

One of the fundamental reason for why conflicts are difficult to manage, is the disconnect between perceived reality and the facts. Unfortunately, during conflicts, emotions tend to takeover and incorrect decisions are often taken. It is hence essential, that when  confronted with a conflict, we analyze the current situation very carefully before proceeding. There are many advantages to taking this first step when managing conflict. Some key advantages are, it gives time to the affected individuals to look at the situation objectively, it allows a look at the bigger picture and reduces the probability of acting irrationally or impulsively. 

Some steps which need to be taken during a fact finding exercise are:

1. Identifying Core Reasons: Take a sheet of paper and write down what you believe are the core reasons behind the conflict, to help convert abstract thoughts into reality. It is a good idea to write down the emotions and feelings attached to the reasons, to fully grasp the extent of the conflict at hand. 

2. Identifying Conflict Stage: It is essential to establish the stage of the conflict. Has this been brewing for quite some time? Is it something which was instigated by a new addition to the team? Different levels of intensities require varying degrees of involvement from external sources.

3. Identifying Affected Parties: Clearly marking out individuals or teams affected by the conflict is an important step. The longer a conflict has been suppressed, the greater the extent of its impact. Therefore, it is advisable to deal with a conflict as soon as it arises.

The fact finding exercise provides valuable objective insight into resolving conflicts effectively. Most of the time we skip this stage, and either completely ignore the issue at hand, or jump straight into the disagreement without thinking through our position adequately. This can have a severely damaging impact on your team, organization and oneself. Establishing facts and our arguments prior to the negotiation stage can save time, make positions clearer and help minimize any bad blood which can arise.

The Price of Impatience

“One moment of patience may ward off great disaster.  One moment of impatience may ruin a whole life.” Chinese Proverb

This week we discussed several scenarios where patience is tested on the entrepreneurial journey. For the last post of this series I will focus on the ‘price’ we pay for lack of patience. Understanding the price of impatience is as important as developing patience. All of us have experienced instances where our patience gave way, and we did or said things which impacted negatively on our life and caused regret. What is important, is that we learn from these temporary lapses and ensure they do not occur again. If we don’t, we run the risk of always being angry, upset and dissatisfied with the progress of our growth. 

Outlined below is what I define the PRICE of impatience to be:

1. Pain: Whenever we lose patience, we cause pain to both affected parties. Often, this is embedded in our subconscious and a recall of that memory, can be a painful experience. There are times when a degree of pain helps us realize all that we should be grateful for. Too much pain however, can be the cause of major instability in life.

2. Regret: Sometimes during lapses of patience, we find ourselves doing and saying things, we would never do ordinarily. It all happens so quickly, and we only begin to understand its impact after everything is said and done. That is when the regret sets in, and if we fail to move forward at this point, it has a domino effect on the self. Regret about something which happened in the past is definitive only by the lesson we learn from it, we must learn to avoid acting in a similar manner again.

3. Irritation: Patience and irritation are negatively correlated, when patience is on the decrease we experience a heightened level of irritation. Nothing and nobody seems to be right anymore. It is like a virus that drains energy out of a team. We have to keep this emotion in check constantly when we are running low on patience, it is one of the easiest ones to give into. 

4. Close-minded: When we lose patience, it is like a switch goes off and blocks everything around us. We become increasingly selfish in our outlook and begin to believe that only we know how to do anything right. This is a dangerous path to tread, the price we pay for this attitude is a serious one. 

5. Emotional: We lose our patience and suddenly, all logic and rationale goes out the window and we find ourselves making emotional decisions. These are usually clouded with the false notion that we know best. This also triggers our saying and doing things that have the ability to cause pain and suffering to those around us. Is a lapse in patience really worth destroying something you may have spent a lifetime nurturing? 

Whenever you find yourself in a position where your patience is wearing thin, ask yourself the following question: “Can I afford the price of my impatience?”. It is important to take into account the larger picture. If we do not, our outlook will remain selfishly restricted to me, myself and I. Is it really worth it?

Employees and Patience

“The five steps in teaching an employee new skills are preparation, explanation, showing, observation and supervision.” Bruce Barton

Two characteristics often found in entrepreneurs is, the need for perfectionism and control. When teams are small, this works to their advantage, however, when business expands, these characteristics tend to be more disruptive by nature. For example, when the business starts to grow, it is inevitable that more resources will need to be hired to keep up with growth. The selection process itself is a difficult process for start-ups with limited experience. The real fun begins when you have these new resources on board and most of the time, they don’t know what they signed up for. Earlier on, I expected the same work ethic, dedication and sacrifices from them as I did of myself. That didn’t go so well, I soon found myself getting impatient as I had set unrealistic expectations. My perception of the scenario was biased, in the process I lost many good people. I learned a thing a two about patience during this time.

Some of the key things to keep in mind next time you feel your patience wearing thin are:

1. Set Realistic Expectations: To expect the people who work for you, to make the same level of sacrifices that you may be making is not correct. From the word go, we have to temper our expectations and more importantly, outline them before you start the selection process. This way, while recruiting there will be more detail, which will help the prospect to make a more informed decision. Keeping broad guidelines for what you want from an employee, will result in both sides being negatively effected.

2. Holding Hands: The on-boarding process takes time, this is the time to help the employee make necessary adjustments to fit into the organization. Bring them up to speed with the projects they will be working on and acquaint them with all the set processes. It takes an average of 1-2 months to bring an employee up to speed, till they start contributing to their potential. Make sure you help them as much as possible to speed up the process.

3. Feedback: We are all human and we all make mistakes sometimes. Instead of coming down hard on an employee regarding their work ethic, performance or behavior, provide feedback on steps to take to bring about positive change. Doing this effectively takes time and a lot of patience. Even when they mess up the proposal, don’t do a good job at that presentation or keep coming late to work, provide them with timely feedback. 

These are simple steps to take, to help become more patient with your employees. Incorporate them into your organization and see increased performance results, calmer working environment and a motivated workforce. Along the way, you will develop the patience required, to scale the business further and help manage people all over the globe. Remember, it is not possible to do everything ourself. Learn to sacrifice a little bit of that perfectionism and control, it will go a long way, in the larger scheme of things. 

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5 Ways To Be a Better Team Member

“In the end, all business operations can be reduced to three words: people, product and profits. Unless you’ve got a good team, you can’t do much with the other two.” Lee Iacocca

“Are you giving your best to the team you are working with?” All of us, who are part of any team, must ask ourselves this question periodically. It forces us to look at the larger picture, and how our actions affect it, for better or for worse. This is vital for our own personal development as well as the team’s progress. Having worked with many teams, I know first hand how easy it is to play the blame game. Team member X is not giving enough time, member Y is not bringing the value he/she is supposed to, a myriad of such thoughts constantly float in your head. We need to make a fundamental shift in our thinking, and focus on giving 100% to the team. We cannot compromise our commitment because other individuals on the team are not pulling their weight. What we can do, is become more proactive in helping other members of the team grow, as well as ourselves.

Listed below are five ways to become a better team member and help the rest of your team follow suit as well.

1. Playing to your Strengths: Understanding and playing to your strengths is a process that takes time. It is important that we start this process as early as possible. There is  much trial and error involved in this discovery process. Often, we realize our choice is not showcasing our true potential. No problem! Use the experience as feedback and move forward. To learn more about playing to your strengths please click here.

2. Being Action Oriented: Team members, customers, suppliers and investors look for people who can deliver what they commit to. This trait is common in successful people, they do not over think things, they, just do it. The concept of “Ready, Fire, Aim” is one I believe in, it has has served me well over the last couple of years. It certainly accelerates the learning process, helps you add tangible value to business, and gets you the reputation of being the guy who gets things done. To read more about becoming action oriented please click here.

3. Giving and Asking for Feedback: The art of successfully giving feedback comes with experience and time. By providing feedback you add value to the team and all of its members. There will be times when feedback will be uncomfortable and these are situations you need to learn to manage. Suffering in silence is not a smart strategy, it is one where both the team and individual lose out. To learn more about giving and asking for feedback in an effective manner please click here.

4. Being Sensitive: Being sensitive is commonly associated with weakness and insecurity in business. I do not believe this, I believe, this is an essential personal characteristic, specially one that entrepreneurs must possess. Being sensitive to the feelings of others, situations and circumstances allows you to focus on larger issues in a more comprehensive manner. Highly effective team members understand the need for sensitivity when dealing with issues which impact the entire team. To learn more about sensitivity in team dynamics please click here.

5. Paying the Price: Every team member has to pay a price when he/she becomes part of a larger entity. For a team to work effectively together, they need to reach a stage where there is price equilibrium. This creates a situation where everyone on the team has similar vested interests and are fully committed to its success. The price of being a team member consists of many elements, two of the most prominent ones are, time and sacrifices. It is critical that all team members find a balance to maintain stability within the team. To learn more about the price of being a team member please click here.

Being the best team member that you can be, is each team member’s responsibility. We have to continuously focus our energies on bringing increasing value to our organization. This may, sometimes be at the cost of your own personal goals, time and other opportunities. When you make a commitment to be part of a venture, remember, to identify the price of entering into the agreement beforehand. This is something to keep in mind when embarking on any entrepreneurial journey. Usually the price for entry is steep, by the same token, so are the rewards. Success is the result of consistent action towards identified goals. The better you perform as a team, the faster you can reach those goals.

Paying the Price

“There’s a difference between interest and commitment. When you’re interested in doing something, you do it only when circumstance permit. When you’re committed to something, you accept no excuses, only results.” Anonymous

Every team member has to pay a price when he/she becomes part of a larger entity. For a team to work effectively together, they need to reach a stage where there is price equilibrium. This creates a situation where everyone on the team has similar vested interests and are fully committed to its success. Reaching such a level is a difficult process, because “price” is relative. If a team consists of 2 junior partners along with 2 senior partners should each member be paying the same price? If a team consists of 3 partners out of which 2 have sacrificed their social life should the third follow suit? I have debated this topic with a lot of people and am always surprised when I hear unique responses to some of the questions asked above.

At the end of most discussions however, there is a consensus that “price equilibrium” needs to exist in every team, it just varies according to the circumstances. Two key aspects of the price one needs to pay, to be part of a team are:

1. Time: Time is a vital and required input into an organization, majors rifts are caused in the team if this is not done seriously. Team members need to dedicate the time they have committed to. For example, if you have a partner who is assisting you while keeping his day job, it is his/her responsibility to be contribute to the team during nights and weekends. When one of the team runs multiple businesses, it is essential to demarcate time commitments according to your level of involvement. Without contributing time an individual is causing a disequilibrium and it usually has nasty consequences.

2. Sacrifices: When you embark on an entrepreneurial venture, get ready to make serious sacrifices. Building a business is not an easy task, it requires all members of the teams to sacrifice their own personal goals for team goals. Many find this difficult to do, some have lifestyles which they want to maintain and others may not be ready to give up personal goals. The fact of the matter is, if you are not ready to sacrifice your time, money and opportunities, do not join a startup. If you are part of the team and you are not sacrificing, in comparison to other members, it is time to step up.

In order to become a valued and key member of your team, it is essential that you are willing to pay the price required. If you find the price too steep, let all your team members know. It becomes challenging to keep paying out and not receiving anything in return during the early stages of your organization. Therefore it is critical to find out more about the team you want to join, before, you sign up. Find out what sort of price you are going to have to pay and whether you are going to be willing to do so. Doing this will make both your life and those of the other team members a lot simpler.

Being Sensitive

“It is… axiomatic that we should all think of ourselves as being more sensitive than other people because, when we are insensitive in our dealings with others, we cannot be aware of it at the time: conscious insensitivity is a self-contradiction.” W. H. Auden

The topic of discussion today is not a subject you usually find on business blogs. Being sensitive is commonly associated with weakness and insecurity in business. I do not believe this however, I believe this is an essential personal characteristic, specially one that entrepreneurs must possess. Understanding this, is the result of interactions with my mentors, who have constantly impressed upon me the importance of being sensitive to your team members, customers and suppliers. I have seen and experienced this in my own interactions of working with several teams over the last couple of years. Being sensitive to the feelings of others, situations and circumstances allows you to focus on larger issues in a more comprehensive manner.

Being a team member will inevitably result in times when the situation requires compromise and taking action in ways you may not always be comfortable with. Reactions to such situations can often be the ‘make or break’ factor for some teams. The key factor in all of this, boils down to balance. Being either overly sensitive or insensitive, bring their own share of difficulties. Maintaining a balance between both extremes requires discipline, an open mind and flexibility. I have worked with several people who have had trouble maintaining this composure, it has invariably led to difficult situations. 

Highly effective team members understand the need for sensitivity when dealing with issues which impact the entire team. Some areas requiring sensitivity are:

1. Dealing with conflict: The manner of handling conflict is a telling sign of whether balance can be maintained between extremes. For example, an individual is in a conflict with another team mate for not contributing adequately to the team. If you were the person who brought up this issue with your team member, your tone, rationale and way of handling this issue is critical.

2. Dealing with change: Whenever an organization undergoes a structural change process, substantial friction is created. This could be when individuals are required to move out of their comfort zone. As an effective team member, it is our responsibility to ensure that everyone on the team is given enough support during this transitional period. Focusing selfishly on yourself or how this change process will impact you alone, is not a winning attitude.

3. Dealing with loss: Every organization has its share of ups and downs. It is during down periods that a team is required to come together and figure out how to fix the situation. I have learnt, dealing with organizational loss tends to bring out the ugly side of people. The fact is, no one likes to lose, but it is a part of life. The success of a team comes down to, how we react to such situations and whether we are able to handle it well collectively as a team.

I agree entirely that some people are more sensitive than others. It is important however, that everyone on the team does their best in dealing with difficult situations and individuals, with an open mind. This attitude will not only help create stronger bonds between all team members, it will also make you stronger as a person. The next time you find yourself in a difficult situation, do your best to understand where the other person is coming from as well. Always remember to treat others in the same manner you would like to be treated yourself.