Building and Keeping Great Teams : Building and Keeping Great Teams Small Business & Entrepreneurship Council (SBEC) & Grow Fast Grow Right Enterprises, LLC
Webcast: May 22, 2007 1:00 p.m. to 2:00 p.m. (EDT) Andrew J. Sherman
Co-Founder & Legal Educator
Grow Fast Grow Right
http://www.growfastgrowright.com Andrew J. Sherman, Esq.
1825 Eye Street, N.W.
Washington, D.C. 20006
ShermanA@dicksteinshapiro.com Andrew J. Sherman : 2 Andrew J. Sherman Mr. Sherman is a senior partner with Dickstein Shapiro LLP (Dickstein Shapiro), an nationwide law firm with over 350 lawyers nationwide.
Mr. Sherman is also the founder of Grow Fast Grow Right, an education and training company for executives of middle market companies (www.growfastgrowright.com).
He is the author of 17 books on business growth, capital formation and the leveraging of intellectual property. He has appeared as a guest and a commentator on all of the major television networks as well as CNBC’s “Power Lunch,” CNN’s “Day Watch,” CNNfn’s “For Entrepreneurs Only,” USA Network’s “First Business,” and Bloomberg’s “Small Business Weekly.” He has appeared on numerous regional and local television broadcasts as well as national and local radio interviews for National Public Radio (NPR), Business News Network (BNN), Bloomberg Radio, AP Radio Network, Voice of America, Talk America Radio Network and the USA Radio Network, as a resource on capital formation, entrepreneurship and technology development.
He has served as a top-rated Adjunct Professor in the Masters of Business Administration (MBA) programs at the University of Maryland for 18 years and at Georgetown University for 12 years where he teaches courses on business growth strategy.
He has served as General Counsel to the Young Entrepreneurs’ Organization (YEO) since 1987. In 2003, Fortune magazine named him one of the Top Ten Minds in Entrepreneurship and in February of 2006, Inc. named him one of the all-time champions and supporters of entrepreneurship. Human Capital – Leadership and Governance : 3 Human Capital – Leadership and Governance “In every single business failure of a large company in the last few decades, the board was the last to realize that things were going wrong.” The (late) Peter Drucker, 2002
Leadership and governance best practices in 2006 and beyond
What has changed
What has always been
What do stakeholders expect from their leaders
Best practices for today’s boards of directors Corporate Governance Structure : 4 Corporate Governance Structure Shareholders Active
Passive Directors Chairman
CEO to avoid “not my job” syndrome Titles
Delegation Senior Management Teams Managing Relationship with Non-Equity Stakeholders Human Capital – Recruiting, Retaining, Motivating and Rewarding Teams : 5 Human Capital – Recruiting, Retaining, Motivating and Rewarding Teams Successful companies are those whose leaders are focused on creating the conditions and the systems to allow their employees to do their best work
Sometimes the solution is right under your nose
How are your recruitment practices facilitating growth objectives?
Do motivational and reward systems align with growth plans?
Creating clear and concise goals
If you keep doin’ what you are doin’, then you’ll keep gettin’ what you are gettin’
Do you have customer-driven and customer-focused recruitment and hiring practices? (e.g. do you hire people around opportunities that can be met if/when this person or team is hired?) How will your customers perceive or value the skills of the person or team you are about to hire?
Have you clearly articulated the value proposition from the prospective employee’s perspective? Recent Washington Business Journal Survey : 6 Recent Washington Business Journal Survey In a recent Washington Business Journal survey on the Best Places to Work, employees were asked to evaluate their companies based on the following criteria:
Retention Risk and Turnover Record
Alignment with Goals
Trust with Coworkers
Recognition of Individual Contribution
Trust in Senior Leaders
Fairness of Compensation Systems
HR Practices and Policies Key Question: How would your employees rate your company on these variables? Commitment to Business Growth Fuels HR Objectives : 7 Commitment to Business Growth Fuels HR Objectives Companies committed to an appropriate strategy for growth create career and personal advancement opportunities for their human capital – growth enables companies to recruit the best people and retain them
Employees who perceive personal growth opportunities have more energy, better morale and greater enthusiasm – a deeper commitment to teamwork and enhanced self-confidence – which leads to a culture of innovation, productivity and sustainable growth
Companies on a path of flat or negative growth (or founder focused selfish growth) suffer from a negative psychology that permeates the organization. The most talented human capital devotes a significant portion of their time looking for a better opportunity and will usually leave once they find one … those that remain are infected by a slow growing cancer that is manifested in cost-cutting, in-fighting and turfmanship Successful Business Growth-Focused Teams Possess These Characteristics : 8 Successful Business Growth-Focused Teams Possess These Characteristics Balance of complementary talents, styles (dreamer, schemer, reamer) and ability to wear multiple hats (general utility infielders)
Truly shared vision and core values with a genuine sense of loyalty to the team
Communication channels that foster open dialogue, room for disagreement and methods for resolving conflicts (without fear of repercussion or a culture of revenge for speaking one’s mind)
Accountability and willingness to share in the fruits of success and be responsible for errors in judgment
Collaborative and empowered process for establishing (and modifying) goals and objectives Successful Teams Possess These Characteristics (cont’d) : 9 Successful Teams Possess These Characteristics (cont’d) 6. Egos parked at door
7. A track record of success (longer together is better) that builds “tacit” knowledge and confidence in each other (as long as it does not lead to complacency or a lack of long-term creativity)
8. Integrity, trust, fairness, and respect by and among team members
9. Strong, cooperative work ethic (imbalances in commitment lead to jealousy, in-fighting and dysfunctional compensation systems)
Compensation and reward system which balances the need to reward the team for teamwork without defeating the need/benefit of recognizing individual accomplishment (Note: The relationship between the “star” of the team and the other players will ultimately define the team’s overall and sustainable success) Keeping Workers at Your Growing Company: It’s More Than Just Money : 10 Keeping Workers at Your Growing Company: It’s More Than Just Money Keeping your team focused on business growth goals means finding the right mix and balance of the following components: Recruitment Strategies and Best Practices : 11 Recruitment Strategies and Best Practices Traditional Channels for Recruitment
Use of the Internet
Employee and Customer Referral Programs
Outsourcing Solutions Guest Panelist: David Lodato Oasis