7 - 1

Chapter 7Exhibit 7.1

7 - 2

Exhibit 7.3

7 - 3

Exhibit 7.6

7 - 4

Entrepreneurial Influence Skills

• Interpersonal/teamwork skills• Create a climate and spirit conducive to high performance• Lead in those situations where it is appropriate• Generate consensus and share power / information• Recognize that high-quality decisions require a rapid flow of

information in all directions (* see HBR)• Accept that knowledge, competence, logic, and evidence need

to prevail over official status or formal rank in organization

7 - 5

Characteristics of Successful Managers

• Managers skilled at teamwork and people management• Encourage innovation and calculated risk rather than by

punishing or criticizing whatever is less than perfect• Expect and encourage others to find and correct their own

errors and to solve their own problems• Make heroes out of other team members and contributors• Generate trust among colleges and subordinates• Perceived as honest and direct, open and spontaneous

7 - 6

HBR

• Crafting strategies that work…

• All ventures require planning, yet too much time spent planning causes missed opportunities

• Screen quickly

• Analyze parsimoniously

• Integrate action and analysis (Kawasaki states this too)

7 - 7

HBR

• Crafting strategies that work…

• Most successful businesses were discovered through personal experiences: work or personal need…

• See page 60, HBR

7 - 8

Key Questions for the Lead Entrepreneur/Founder

• Is formation of a team desirable or necessary?

• Do I want to grow a higher potential company?

• What talents, know-how, skills, track record, contacts, and resources are currently available?

• What is needed to succeed?

• Who is needed to complement me?

7 - 9

Forming and Building a Team

• Three issues for consideration• Values, goals, and commitment• Definition of roles• Peer groups

7 - 10

Common Pitfalls

• Do not use the “honeymoon” period of start-up advantageously

• Do not answer the questions of who is in charge

• Do not address or recognize the deficiencies of the lead entrepreneur or the management team

7 - 11

Common Pitfalls

• Do not recognize that creating and building a new venture is a dynamic process

• Do not identify and defuse destructive motivations of investors, prospective team members, or the lead entrepreneur

• Do not value trust and integrity

7 - 12

Slicing the Founder’s Pie

• How much stock ownership should go to whom?• Share the wealth with those who help to create the value and

thus the wealth

• Realize a harvest of at least 5 to 10 times the original investment

• Make sure the company prospers and grows thus creating a huge, shared pie

7 - 13

Distribution Issues

• Differentiation• Reward system recognizes differences in contributions among

team members

• Performance• Reward is a function of performance (as opposed to effort)

• Flexibility• Reward system acknowledges and accounts for changes in

contributions of team members

7 - 14

Consideration of Value

• Idea

• Business plan preparation

• Commitment and risk

• Skills, experience, track record, or contacts

• Responsibility

7 - 15

Exhibit 9.1

7 - 16

Exhibit 9.3

7 - 17

Exhibit 9.4