Copyright © 2015 by the Board of Trustees of Stanford and Stanford Technology Ventures Program (STVP). 

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Session 12: Team Dynamics Exercise

E 1 4 5 | F A L L 2 0 1 5

Tom Byers and Chi-Hua Chien

e145.stanford.edu

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© Mark P. Rice, Babson

P R O D U C T O R S E R V I C E M A R K E T

P E O P L E A N D O R G A N I Z A T I O N

R E S O U R C E S A N D C A P I T A L

P U R S U I T O F O P P O R T U N I T Y

O P P O R T U N I T Y R E C O G N I T I O N

Idea Vs. Opportunity(module 1)

Realities ofBusiness

Operations(module 2)

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A . R E C R U I T I N G T H E T E A M

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•  Issues and trade-offs:•  motivation and character traits vs. qualifications? •  experience vs. passion and energy?•  when to hire?

✓  Founders, CEO and VPs✓  Designers, Developers, “Architects”,

and Product Managers✓  Sales and Marketing✓  Operations and Admin✓  Any Others?

•  Issues and trade-offs:•  how to find and

select?•  how best to

manage?

✓  Board of Directors✓  Investors✓  Advisory Boards✓  Professional Services and Suppliers✓  Any Others?

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T E A M R E C R U I T I N G

A

C O M P E N S A T I O N & R E W A R D S

B

C U L T U R E

C

•  Status Determined by Contributions to Improving Culture and Increasing the Value of the Company

•  Rewards Tend to be Value-Enhancing such as Stock Options (Equity Ownership)

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B . U N D E R S T A N D I N G C O M P E N S A T I O N A N D R E W A R D S

•  Cash: o  Salary and Bonus

o  Benefits

•  Equity:o  Common Stock Plans (Incentive Stock Options

Have Favorable Tax Rates)o  Vesting Schedule and Stock Budget

o  Tax Implications (IRS in USA) and Security Laws (SEC in USA)

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C O M P E N S A T I O N C O M P O N E N T S

T Y P I C A L R A N G E S O F O W N E R S H I P

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Position Pre-Rev Post-Rev

CEO 5-10% 3-8%

VP Engineering 3-5% 1-3%

VP Marketing 3-5% 1-3%

VP Sales 1-2% 1%

CFO 2-3% 1-2%

Other VPs 1-2% 1%

Key Individuals 0.5-2% 0.3-1%

“A strong system of informal rules that spells out how people are to behave

most of the time.”

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C . C U L T U R E

1.  Develop Sense of Teamwork 2.  Understand the Personalities of Key People3.  Develop Open Internal Communication4.  Remain Open to Ideas from Anywhere5.  Be the Customer6.  Be Willing to Experiment7.  Include Creative and Unusual People8.  Address the Autonomy Balance

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G O A L : A C U L T U R E O F I N N O V A T I O N

Source: Collins & Lazier

I N N O V A T I O N = ƒ ( C R E A T I V I T Y , T E A M W O R K )

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C R E A T I V I T Y

C H A N G E A N D G L O B A L I Z A T I O N

O P P O R T U N I T Y E V A L U A T I O N

D E C I S I O N M A K I N G

T E A M W O R K

C O M M U N I C A T I O N

P E R S U A S I O N A N D I N F L U E N C E E T H I C S

B A S I C S O F F I N A N C E

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N A M E A S U C C E S S F U L G R O U P E F F O R T T H A T W A S S U C C E S S F U L A T I N N O V A T I O N .

W A S I T R E A L L Y C R E A T I V E O R W A S I T G R E A T

A T T E A M W O R K O R B O T H ? W H Y ?

Pop-up Exercise:

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•  Chance to improve the productivity and effectiveness of your team

•  Reinforce the importance of teamwork in new ventures

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T E A M D Y N A M I C S E X E R C I S E O B J E C T I V E S

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B U T W H A T I F T H I N G S O R G O I N G G R E A T ?

O R W H A T I F T H I N G S A R E G O I N G P O O R L Y ?

T E A M D Y N A M I C S E X E R C I S E

•  Step #1: Team Process Evaluation Sheet

•  Step #2: Preparation for Team Exercise

•  Step #3: Team Exercise on Your Own

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S T E P # 1 : R E V I E W T H E “ T E A M P R O C E S S E V A L U A T I O N S H E E T ” I N D I V I D U A L L Y

S T E P # 2 : P R E P A R A T I O N F O R E X E R C I S E

•  Circle 1 or 2 of the highest scores (for “I Like…”)

•  Circle 1 or 2 of the lowest scores (for “I Wish…”)

•  Write down one thing that you can do differently or better to improve the functionality of your team for the rest of this course Hints: focus on root causes, not symptoms; celebrate the common “I Like …”; address the common “I Wish …”; say thank you a lot.

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S T E P # 3 :

•  Meet with your team to compare each of your “I Like…” and “I Wish…” lists

•  Then share what you wrote as your personal commitment to improve the team’s performance for the rest of the term

•  Send one simple confirmation that the meeting took place to the E145 homework email list

•  Please always keep this in mind … how to make this exercise relevant and helpful to your team?

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Thank you! Q u e s t i o n s ?

e145.stanford.edu