The Entrepreneur Life

Month: August 2008

Capt Kirk’s Leadership Style – Is it right for entrepreneurs?

Capt Kirk

Photo: pds209 cc

A casual search of the blogosphere, with the words “Capt. Kirk” and leadership spews a long list of largely positive descriptions of Capt. Kirk’s leadership style. In fact, a secondary school principal, has actually written a referred article on Captain Kirk, His Leadership Style as a Model for Principals in the National Association of Secondary School Principals (NASSP) Bulletin!

For those of us old enough to have caught William Shatner as Capt. Kirk, admiration is usually the first response (especially if we were lucky enough to miss the priceline.com ads – I had to move out of the country for this). Capt. Kirk cut a dashing figure – a man who surrounded himself with smarter folks (Spock the scientific officer, Bones the Doc and Scotty the engineer), always prepared to lead from the front and always got the girl! I am sure I am not the only 40+ fella who wished he were in Capt Kirk’s shoes, when we first encountered him.

Albert J. Bernstein and Sydney Craft Rozen, in their book “Dinosaur Brains – Dealing with All Those Impossible People at Work” speak of cheering Capt. Kirk as he staved off an attack by the Romulans, even as he just recovered from a problem of rapid aging. “What a manager!” was their first feeling. Then they began wondering “Or was he?” They go on to say:

In our culture there is some confusion between management and heroics. The distinction is quite simple: The hero handles everything single-handedly; the manager delegates. If a manager is indispensable, is he or she really managing?

What is true for managers is truer (in spades) for entrepreneurs, who inevitably are in leadership roles which they play all too often from Capt Kirk’s heroics’ handbook! I am certainly competent to speak, having been an adrenaline junkie till recently (others may argue I still am) – always charging off (in my strapped sandals, we don’t have much use for steeds, white or any other color) to solve problems. Luckily having great people around me, who were neither shy nor too polite, cured me off this, I’d like to think. However, as Capt. Kirk himself has shown, having good people (“Dammit Jim, I’m a doctor not a miracle worker!”) around is not a sufficient reason for not falling into the “I’m here and will take care of everything” habit.

So stop for a moment and take a look at the ol’ mug in the nearest mirror and ask yourself “Am I a leader or merely a hero?

Mentoring folks – can start-ups afford to not do it?

“Maybe you can tell your team about your desire to partner with us.”

As soon as these words left my mouth, I realised that I had made a major faux pas. The words were addressed to the visiting CEO of one of our major prospects; one we had been trying to get interested in our products and services for nearly a year.

I was young and probably viewed myself as the hotshot marketing guy and the words had rushed out due to my frustration at dealing with the lack of coherence within their company.

Our chairman, who had put his personal credibility on the line to bring this gentleman in, was still reeling from the shock and the look on the face of our CEO made his desire to eviscerate me amply clear. In this instance, except for some ruffled egos, no permanent damage resulted from my inopportune directness. It could have been a lot worse.

It is through such avoidable mistakes that many of us learn the nuances and subtleties of doing business. In this particular instance, our chairman — luckily — did not confine himself to dressing me down (in private), but counselled me on what I had done wrong and how it could have been handled better, even while getting my message across.

I wish I could say such specific feedback and mentoring happens all the time in companies, let alone start-ups, but this seems to be the exception rather than the rule.

A common excuse in most start-ups is that “We are running at a hundred miles an hour, you just have to dive in and swim.”

So training, if at all, is mostly confined to a quick orientation session: “This is where the bathrooms are, here is where the hardware team sits and finance is over in that corner and oh, here’s your team and your desk. Good luck!” But it is in start-ups that we need to pay attention to mentoring.

The very word with its connotations of ongoing and consistent, if not continuous, investment of an already overworked person’s time seems such a luxury — which explains why most of us fail to give mentoring its due. Big mistake! Particularly since start-ups, with a small group of people, try to hire the best, and that Linux guru or penny pinching accountant we hired are often worth their weight in gold for their technical skills, but are often just not fit for normal human company.

When you have taken the trouble to hire the best, you often find they have come with as large a set of challenges to overcome as they have key skills.

And if they happen to be fresh graduates, then you have your work cut out!

Who mentors whom?
You have resolved that mentoring is the way to go to take your company to the next level. Now all you have to figure out is who needs to be mentored. This may not always be an easy thing to figure out. A simple rule of thumb I’d suggest is that anyone who has moved into a new role, particularly if he or she is being promoted, needs to be mentored. While this is true even for lateral moves such as the engineer who moves into marketing or the finance guy who wants to move into sales, all individuals you hope to grow into a leadership role have to be mentored. Lest you groan loudly or at the very least roll your eyes at the thought of all that overhead, mentoring, while very important, if done right need not be a major time drain.

Who should do the mentoring?
Conventional wisdom (or if we are to believe Hollywood) paints a mentor as middle-aged guy, greying if not balding, teaching the young buck a thing or two. Experience matters, not just to be knowledgeable, but for credibility as well. Such experience could reside in a young but proven manufacturing supervisor who has managed a unionised workforce, just as easily it could in a white collar vice-president of engineering. So knowledge that stems from direct experience, a willingness to share and patience are key attributes that a mentor should possess for the whole mentoring programme to work. It certainly helps if the mentor is well thought of in the organisation and experienced in multiple domains if not in multiple departments. Many a time, a mentor may come from outside the organisation — for instance, an up and coming woman manager may only find a mentor who has both the experience and empathy outside her company. An executive staff member may look to a member of the board for guidance and mentoring. The key to successfully mentoring your future stars is for such mentoring to be sought by the employee rather than it being prescribed like medicine! Of course, your actions and culture will have a good deal to do with whether people seek such mentoring.

How do you mentor?
In one word, gingerly. Mentoring has far too much in common with parenting, most of all in that there are many ways to mess it up, calling for therapy for all concerned! As this has not stopped us from having children, clearly it is not sufficient cause to avoid mentoring.

Albert J. Bernstein and Sydney Craft Rozen in their book Dinosaur Brains – Dealing with All Those Impossible People at Work talk about the rules of a mentoring relationship. They advise prospective mentors to think in terms of a contract and ask “What would you like me to do,” so that a mentoring relationship doesn’t fall into a parent-child role or a courtship role in the case of people of opposite genders. As a mentor, they warn, if you don’t consciously think and state your expectations, you may end up with vague emotional ties that result in anger or guilt from unmet expectations.

Once all the parties have stated their expectations, mentoring can be a very enlightening, fulfilling and rewarding experience. For practical reasons, it is important to have some regularity (monthly, quarterly) to your interactions and sustain these meetings, whether in person or on the phone, even when there seems to be “nothing” to discuss. Being available in times of crises certainly helps, but there is a fine line between being helpful and becoming a crutch, that you should not cross and must monitor to keep both of you honest. Asking questions, open-ended ones at that, is a sure fire way to do this, rather than providing the solutions that you know will work.

Mentoring Successfully
If mentoring at times seems like crossing a minefield, you need only to talk to parents of adolescents to know you have the easier job. With all the energy and emotions that need to be expended, mentoring, when done well, pays off in spades. Otherwise, every one of your promising employees is learning all the lessons the hard way. Mentoring with its real life coaching, the occasional nudge and shove will make it a lot less painful and a lot more productive. The hard part of mentoring is resisting the urge to act yourself when decisive action is called for; for the person being mentored, these are the best opportunities to learn, so allow them to do so by cajoling, pleading or where required threatening if plain old reasoning doesn’t work. The harder part is knowing when the bird is ready to leave the nest and providing the autonomy and respect for them to do just that. Mentors who can do that are the ones who are truly successful.

This article first appeared in the Hindu BusinessLine in August 2008.

 

Is a Board of Advisors important for a startup?

Photo: Esthr via Compfight

Photo: Esthr via Compfight

“I am trying to hire a CEO for my manufacturing business. If I give him equity, what should I do for my existing GMs?” One of my early-morning jogging partners shot this at me recently. Mine was a group of men, all in their early- to mid-forties. Many members of the walking (some ambling) group run their own businesses. Many a morning, we end up discussing the challenges someone in the group faces that week.

It surprises me to see that many firms lack a truly functional board of directors or, at the very least, an active board of advisors, though they have become reasonably successful. Each of these firms fulfils the mandatory requirements for the appropriate number of directors and periodic board meetings and minutes—often honoured more in the breach than in the observance. Ironically, this state is probably truest in entrepreneurial firms that would benefit the most in having such a functional board of directors or advisors.

Many entrepreneurial firms start off as proprietorships. They do so for a number of reasons, which range from the simplicity of the business to a founder feeling uncomfortable having partners or other equity owners. As the business grows, the more successful ones—even while staying private and closely held—end up having additional partners, external investors or employee shareholders. The ones that go public are beholden to a new set of statutory and practical rules of operations. However, proprietorships, partnerships and most limited companies are run far too long with little external help or advice, let alone oversight, that a well-constituted board of advisors or directors can provide.

Company Law and the law of the land recognise, empower and hold responsible the members of a company’s board of directors, to stringent legal and statutory criteria; for all intent and purposes, it doesn’t recognise any locus standi for a member of the board of advisors. For this very reason, people who don’t want to deal with the legal liabilities of being board members may be open to being a member of a company’s board of advisors.

The reason why am I so bullish on a board of directors or advisors is that I see a board playing the same role for a company that a good mentor would play for an individual. In other words, it acts as a sounding board, an experienced hand to guide through the shoals of business and someone to keep honesty intact.

In the case of my friend who wondered whether to give his CEO-candidate equity in the company; and if so, how to structure the vesting or earn-out of the equity, and how to handle equity to his current general managers, he sought help from us, his peers, as well as an HR consultant from the local management institute. Consultants can bring value with their external viewpoint, domain expertise and articulate the options available. But they do this with little context about the business.

On the other hand, a board member would have the larger context of a business, the history of the key staff and the challenges the business faces. So, when they bring their expertise of having seen and handled equity structuring in other companies and make recommendations, they do so within the specific context of your business.

Such a context may include constraints that one has, commitments one has already made, and contributions other long time employees have made. They may also understand the blind spots, prejudices and weaknesses, and be in a position to champion a course of action in a far more an effective manner than a consultant.

As business operational heads, most of us don’t think twice about seeking external expertise, like hiring an IT or a PR consultant or an intellectual property lawyer. We would be better off constituting an operational board of advisors, who can not only bring in such subject-matter experts, but can also provide a sustained, steadying hand over time to our businesses and ourselves as leaders.

This article first appeared in Outlook Business in August 2008.

Hiring for a startup

From my latest article, the first in the second phase of the Start-up Logic entrepreneurship series in the Hindu BusinessLine.

Her father is in the lobby, waiting to meet you,” I was told. I wasn’t sure I had heard right, so when I stepped out into the little passage that served as the “lobby” of our start-up, there was indeed a gentleman, probably in his late fifties, waiting there. Granted it’s not every new employee’s father who travels 2,000 km to meet her prospective employers, but as a start-up you should expect the unexpected. More importantly, be prepar ed to do the unexpected to find, hire and retain the right people.

Read the rest here.

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