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How to Align Your Startup Team for Execution

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According to Stanford research 92% of start-ups fail in the first 3 years. There are literally thousands of great ideas out there, but what separates successful companies is the ability to execute and get traction. Failure is guaranteed without execution.

Try to do everything and you will do everything badly – the key is to focus on one thing, do it well and do it until it’s done. Get this right and the whole team will be focused, working together to carry the load and your company will be on its way to being part of the 8%. Get it wrong and everyone will be spread paper thin, trying to do everything, doing everything badly and be en route to being a statistic.

The key is alignment. By using daily huddles, weekly/monthly problem solving and quarterly planning, high performing startups align what the team is doing (OKRs) day to day and week to week, with a quarterly theme, annual milestones, 3-5 year targets and the critical long-term fundamentals – purpose, BHAG, brand promise and core values.

Aged-care SaaS start-up KareInn (Seedcamp) and urban garden start-up Patch (Forward Partners) are both using these alignment tools to execute voraciously and are ahead of plan to their next financing milestones.

Clarity with a 1-Page Strategic Plan

At Forward Partners, we use a tool called the 1-Page Strategic Plan, developed by author and founder of the Entrepreneurs Organisation – Verne Harnish. The framework and the insights I discuss in this article, are in large part developed by his formidable organisation – Gazelles.

As your team grows from 3 to 10, 10 to 25 and 25 to 200, the organisation goes through cycles of change as you learn to manage communication, planning, execution and productivity.

A 1-Page Strategic Plan literally gets everyone onto the same page and allows you to harness the power of the team. Everyone knows that a 20-page business plan is obsolete the moment it is written. No one reads it and it sits on a file server! A 1-page Strategic Plan is a living document that captures on one-page the entire company’s strategy. In the short term, this captures what the team is doing day-to-day, week-to-week, with the top quarterly priorities (rocks) and a number one priority – the quarterly theme. In the longer term, the plan captures annual milestones, 5 year targets, and the really long-term stuff – purpose (mission), vision, your BHAG, and the stuff that binds you together as a team – core values.

Where to begin?

With venture funded startups, I like to focus the mind by getting clear about the founders’ personal objectives and the implications for a “liquidity event”. Most founders are primarily motivated by the passion to “do something” worthwhile, build and create.

For better or worse, the moment you decide you need to do this with the help of an investors money, rather than boot strap yourself, you become wedded to a second set of objectives. This means making sure you are aligned with your investors about what a successful “exit” looks like.

We do this by defining our 3-5 year targets. Most accept that 7-10 years is more realistic for an exit but 3-5 years focuses the mind.

  • What would success look like? What would be your gross revenue? EBIT margins? EV/market cap?
  • Where will your company be playing (your sandbox)? Which markets, products, geographies?
  • What are the 3-5 major capabilities that you will need to build to get there?

Have you done this explicitly with your investors? Surprisingly few companies do.

What next?

Having worked out where we want to be in 5 years, next we “go long!” – financial goals only go so far. The truth is, great organisations are motivated by things much more fundamental than money. It’s important for you to find your “north star” – purpose, core values, BHAG.

A company’s “purpose” is the distillation of what the company is really about. At its core, when your customer buys your product or service, there is really something much more fundamental that they are trying to achieve. It’s often a basic emotion or need. The objective is to get it down to one word, or at most a short phrase. To get to the root cause of a problem Toyota developed a tool called 5 Whys. It’s hard to do this well and it requires persistence, but an example is to be found here.

At Forward Partners we are “an early stage Venture Capital investor”. Why do we do that? Why is it important? Ask and answer that question five times and generally you get down to “to save the planet!” Back up one level and you will find your purpose. At Forward Partners our purpose is “real prosperity”. We are in the business of helping our portfolio company founders achieve their goals and “real prosperity”. Our portfolio companies are “real” businesses, making a difference and doing worthwhile stuff in the world. “Real prosperity” also applies to the limited partners in our fund (our investors) who in turn are trying to deliver better returns for their pension fund investors, and perhaps in turn your grandmother – “real prosperity”. Finally “real prosperity” also applies to our team who we want to have rewarding careers, develop their skills, do satisfying work to support our portfolio companies and enjoy rewarding compensation. All our team members participate in the carry – “real prosperity”.

Having distilled your purpose, next we look for a BHAG (Big Hairy Audacious Goal) a concept developed by author Jim Collins. There are lots of resources available online to help you better understand the concept, but the objective is to find a measurable goal that really raises your sights. If done well, it might result in a sharp intake of breath and the response “wow, if we really achieved that, that would be mind blowing!” The classic BHAG was Microsoft’s “a PC on every desk” (which for a time they basically achieved!)

Powerful also is brand promise – what are the three fundamental reasons why your customers would choose you over your competitors? We then look for three brand KPIs that measure how effective we are at delivering on those promises. Southwest Airlines is a great case study for a focused brand promise.

Finally we distil our core values. Before you roll your eyes, what we mean by core values in this context is definitely NOT the “motherhood and apple pie” that masquerades as core values at your average big corporate – honesty, integrity and team work. Within the context of the 1-Page Strategic Plan, what we are looking for is truth about the real values that define the organisation. Objectively, they can be “good” or even “bad”. Often we look to the founder for core values. What was their original motivation for starting a business.  Secondly we look to high performers in the team – who are those individuals that you wish you could clone? Often a core value lies in their conduct.

Bringing it back to the here and now

Having articulated the long-term vision for the business, it’s time to start bringing it back to the present. I often find myself using the analogy that your company vision (purpose, BHAG, Brand Promise and Core Values) is equivalent to “which mountain the company is going to climb”. The quarterly and annual milestones are like deciding to tackle the summit via “basecamp two and basecamp five”.

So next we determine where the company needs to be in 12 months time? For example, what milestones do we need to deliver to raise our Series A or Series B? We could define this in terms of:

  • Users
  • Subscriptions
  • Unit sales
  • Revenue targets and profitability.

We underpin this with 3-5 key initiatives or milestones and 1-2 critical numbers for the team to monitor; ideally one that is people or balance sheet related and a second that is process or P&L related.

Having determined where we need to be in 12 months, we then bring the focus back to the next quarter, more or less looking for a similar set of metrics to deliver in the next 90 days. Here we focus on the top 3-5 priorities or “rocks”. The term is borrowed from a fable about the most important things in life. If you are to fill a bucket with rocks, pebbles and sand, don’t put the sand in first as there will be no room left for the pebbles and rocks. Of the dozens of things that the company needs to do every quarter, the “rocks” are identified as the most important. A company’s rocks might include “launch a new product”, the pebbles are “make payroll” and the sand is “respond to my slack messages”. The analogy is used to focus the mind and carve out time to work “on the business” rather than just “in the business”.

Next we focus the team with a quarterly theme. Ideally this has everyone in the company focus on the most important (number one) of the top five priorities. When this process works really well companies will identify a theme that is humorous, a bit irreverent and fun. At Forward Partners this quarter our theme is “Unleash the Beast” – code for us documenting and clearly articulating the way we help our portfolio companies build their MVP. We have a scoreboard and while there is a core team, everyone in the company is contributing to the process. If we deliver on the theme the company will celebrate by going white water rafting together!

Finally, everyone in the company captures their own individual priorities and KPIs that underpin the company’s quarterly theme and quarterly rocks. At Forward Partners we use Google’s OKRs – objectives and key results.

Maintaining Alignment 

The process described above is conducted during a 1-2 day (!!) offsite. The whole team contributes to building the plan. This not only creates buy-in and team alignment, but often generates insights that senior management had not considered.

The key to using a 1-page Strategic Plan is to recognise that it is a process (run quarterly) and not a static output. Each quarter the team comes together and rebuilds the plan from the ground up. In between we take the plan out to the market and test it. Tzun Tzu says “no strategy survives first encounter with the enemy” and the same is true for strategic planning. Each quarter the team brings back learning and insight that helps refine the plan. Next quarter we may still be climbing the same mountain but this time we will “bypass basecamp two and go straight to basecamp three”.

Between quarterly planning sessions, alignment is maintained with Meeting Rhythm. The best teams huddle daily (no more than 15 minutes stand-up), problem solve weekly, assemble to work on strategy monthly and plan quarterly.

Summary

All together this is the process of executing well by maintaining alignment and using a 1-page Strategic Plan – huddle daily, meet weekly/monthly to problem solve and plan quarterly. In your planning, align what the team is doing (OKRs) day to day and week to week, with a quarterly theme, annual milestones, 3-5 year targets and the critical long-term fundamentals – purpose, BHAG, brand promise and core values. Simples.

Finally, a word from one of our highly talented founders at Forward Partners – Freddie Blackett at Patch

“For Patch, the 1PSP has been great because:

  • It’s a simple, not-too-scary way for a startup to get down on paper their Strategy 1.0. Tools like the lean canvas are super at first but they can be inferred as static. LC is a portrait of the business’ proposition as it is/wants to be. 1PSP is a portrait of the business, where it is headed and how it’s going to get there, with clear implications for everyone involved.
  • Consulting tools can feel a bit daunting and consulting-y but what’s been great for Patch is that the shorthand for our quarterly theme has been deliberately light-hearted and catchy, for example “BIGKEN65” and “Barbara Windsor”. That might sound flippant but actually it’s been really important for it to catch on across the team.
  • We had a great facilitator! Like with all things strategic, it’s vital to have someone asking the right questions of you to draw your team out of the day-to-day and into the bigger picture. Unless you have someone experienced in group facilitation, it’s difficult to get that. The obvious risk being that you might end up with the wrong plan.”

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About the Author

Written by Steven Gledden of the Path Forward. The Path Forward was developed by Forward Partners, a VC platform that invests in the best ideas and brilliant people. Forward Partners devised The Path Forward to help their founders validate their ideas, build a product, achieve traction, hire a team and raise follow on funding all in the space of 12 months. The Path Forward is a fantastic startup framework for you to utilise as an early stage founder or operator.

Entrepreneurship

Women on Top in Tech – Daphne Ng, CEO of JEDTrade

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(Women on Top in Tech is a series about Women Founders, CEOs, and Leaders in technology. It aims to amplify and bring to the fore diversity in leadership in technology.)

Daphne Ng is the CEO of JEDTrade, a blockchain technology company focused on trade, supply chain, and financial inclusion projects in ASEAN. She is also the Scretary-General at ACCESS and Exco. of Singapore Fintech Association

What makes you do what you do?
I was introduced to blockchain technology in 2016 after I left my corporate banking career after 10 years. It was my mentor who first got me interested in this technology, which I then went on to delve further into, on its potential applications in the lending and trade finance space – domains where I came from.

How did you rise in the industry you are in?
Being in the space for 2 years and actively involved in the ecosystem, I was able to bring on the projects, network and a good degree of thought leadership in this vertical. Early on in the startup journey, our team faced many challenges. And to me, the key to rising above failures are two essential factors – resilience and support. While resilience is innate, I received a lot of help be it in terms of connections or advice. ‘Nobody succeeds without help’ rings very true for me.

Why did you take on this role/start this startup especially since this is perhaps a stretch or challenge for you (or viewed as one since you are not the usual leadership demographics)?
From the start, I focused on my domain expertise in trade finance and the application construct of how blockchain and DLT can be applied to these use cases. Also, my strategy from the start was to build a technology company made up of 80% tech and engineers, which is also our key competitive advantage today. At the end of the day, deliverables are about strategy and execution, which includes building and leading an ‘A’ team.

Do you have a mentor that you look up to in your industries or did you look for one or how did that work?
I have many mentors, which includes our company advisors (all of whom are well-known in this industry) and mostly informal mentors I meet via my connections, and on various occasions and circumstances. Creating opportunities also means putting myself in the right place, at the right time. And in my case, these were mostly organic and genuine friendships formed from the initial connection.

How did you make a match if you and how did you end up being mentored by him?
To me, a match in values is very important. It also takes humility to ask for help and be willing to listen to advice, which is important in order for mentorships to be successful – be it formal or informal.

Now as a leader how do you spot, develop, keep, grow and support your talent?
I love this question! I am passionate about building strong teams and helping my people grow. I abide by the 3Rs when identifying talents: resourcefulness, resilience and right values. And then I invest in the ‘potential’ and this means giving them room to lead, make decisions and take risks.

Do you consciously or unconsciously support diversity and why?
My support of diverse talents, skillsets and characters can be seen in the make-up of our core team – all helming specific roles and each bringing their own value to the table. We need the sum of all parts to build a great company.

What is your take on what it takes to be a great leader in your industry and as a general rule of thumb?
Great leaders emerge in times of failures and challenges, never abandoning the team, and always putting the team’s interests before her own. And I consciously live by these mottos every day.

Advice for others?
My advice to other entrepreneurs: be resolute and dare to be different. If you are going to follow others, then you will end up on the same path as them. No right or wrong; but I would rather chart my own path. This June, we are officially launching our blockchain project, Jupiter Chain (www.jupiterchain.tech), which have garnered much interest in the industry, even before we made it public. We believe this project is the epitome of marrying innovation with practical implementation, and we want to be the first to truly operationalize blockchain for our ecosystem projects in this region.


If you’d like to get in touch with Daphne Ng, please feel free to reach out to her on LinkedIn: https://www.linkedin.com/in/daphne-ng-%E9%BB%84%E7%91%9E%E7%8E%B2/

To learn more about JEDTrade, please click here.

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Callum Connects

Jace Koh, Founder of U Ventures

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Jace Koh believes cash flow is the lifeblood of your business. Understanding it will enhance your ability to run and manage your business.

What’s your story?
My name is Jace Koh and I am the Founder of U Ventures. I’ve always been inclined towards investment and entrepreneurship. I’ve played a hand in starting businesses across these industries – professional services, cloud integration, software and music. I believe that succeeding in business is tough, but that’s what makes the rewards even sweeter.

What excites you most about your industry?
Everything excites me. These are my beliefs:

  • Why is accounting important?
    The accounting department is the heart. Cash flow is like blood stream, it pumps blood to various parts of the body like cash flow is pumped to various departments and/or functions in a business. It is vital to the life and death of the business.
  • Is accounting boring?
    Accountants are artists too. They paint the numbers the way they want them to be.
  • What makes a good accountant?
    A good accountant can tell you a story about the business by looking at the numbers.
  • Why is budgeting and projection important?
    Accountants are like fortune tellers, they can predict the numbers and if you wish to understand your business and make informed decisions, feel free to speak to our friendly consultants to secure a meeting.

What’s your connection to Asia?
I was born and raised in Singapore, and here’s where I want to be.

Favourite city in Asia for business and why?
Singapore is my favourite city. We have great legal systems in place, good security and people with integrity. Most importantly, we have a government that fosters a good environment for doing business. I recently went for a cultural exchange programme in Hong Kong to learn more about their startups. I found out that the Hong Kong government generally only supports local business owners in terms of grants. They’ve recently been more lenient and changed the eligibility to include all businesses that have at least 50% local shareholding. But comparing that to Singapore, the government only requires a 30% local shareholding to obtain government support. In the early days of starting a business, all the support you can get is precious. It’s great that we have a government that understands that.

What’s the best piece of advice you ever received?
The best time ever to plant a tree was 10 years ago as the tree would have grown so big to provide you with shelter and all. When is the next best time to plant a tree? It is today. Because in 10 years time, the tree would have grown big enough to provide you shelter and all.

Who inspires you?
Jack Ma. His journey to success is one of the most inspiring as it proves that with determination and great foresight, even the poorest can turn their lives around. I personally relate to his story a lot, and this is my favourite quote from him, “If you don’t give up, you still have a chance. Giving up is the greatest failure.”

What have you just learnt recently that blew you away?
I’ve faced multiple rejections throughout my business journey, and recently came across a fact on Jack Ma about how he was once rejected for 32 different jobs. It resonated very deeply and taught me the importance of tenacity, especially during tough times.

If you had your time again, what would you do differently?
Nothing. I live a life with no regrets. Everything I do, regardless of whether it is right or wrong, happy or sad, and regardless of outcome, it’s a lesson with something to take away.

How do you unwind?
I love to pamper myself through retail therapy and going for spas. I also make a conscious effort to take time off work to have a break outside to unwind as well as to uncloud my mind. This moment of reflection from time to time helps me see more clearly on how I can improve myself.

Favourite Asian destination for relaxation? Why?
Taiwan! Good food with no language barriers and the people are great!

Everyone in business should read this book:
I don’t really read books. Mostly, I learn from my daily life and interactions with hundreds of other business owners. To me, people tell the most interesting stories.

Shameless plug for your business:
We’re not just corporate secretaries, we’re “business doctors.”
U Ventures is a Xero certified advisory firm that goes beyond traditional accounting services to provide solutions for your business. You can reach us on our website: http://uventures.com.sg/

How can people connect with you?
Converse to connect. You can reach me via email at [email protected] or alternatively, on LinkedIn here: https://www.linkedin.com/in/jacekoh/

This interview is part of the ‘Callum Connect’ series of more than 500 interviews

Callum Laing is an entrepreneur and investor based in Singapore. He has previously started,
built and sold half a dozen businesses and is now a Partner at Unity-Group Private Equity and Co-Founder of The Marketing Group PLC. He is the author two best selling books ‘Progressive Partnerships’ and ‘Agglomerate’.

Connect with Callum here:
twitter.com/laingcallum
linkedin.com/in/callumlaing
Download free copies of his books here: www.callumlaing.com

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