Sustainable Technology Entrepreneurship for Scientists and Engineers

Anthony Marchese, Dept. of Mechanical Engineering

WEEK 15: THE NEW ENTERPRISE ORGANIZATION

Readings for today Thomas Byers, Technology Ventures, 2010

Chapter 12 “The New Enterprise Organization”

The New Venture Team (i.e. the founders)

The Two Pizza Rule Jeff Bezos, Founder of Amazon.com argues that team size should follow the “two pizza rule”: just 2 pizzas should feed the entire team (i.e. 2 to 6 people).

The New Venture Team (i.e. the founders)

Envirofit: Willson, Hudnut, Lorenz, Bauer

Apple: Jobs (charismatic leader) Wozniak (engineering leader), Markkula (business and marketing)

Sprig Toys:

Abound Solar:

Characteristics of Effective Teams1. All members share leadership and

ownership

2. Communication is continuous

3. Tasks and purposes are well understood

4. People listen to each other

5. Most decisions are reached by consensus

6. Feedback on performance is frequent

7. Division of tasks is clear

8. Collaborative effort is the norm

9. Rely on each other and hold each other accountable

Leadership

Supporting Coaching

Delegating Directing

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Directive Behavior (Telling How)

low

high

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Leadership

Supporting Coaching

Delegating Directing

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Directive Behavior (Telling How)

low

high

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Target Area

Seven Traits of Leaders1. Authenticity. Consistent actions and words2. Decisiveness. Willing to act on imperfect

information3. Focus. Create a priority list and stick to it.4. Care. Build relationships and social capital5. People Skills. Offer feedback and coaching

to team members.6. Communication. Stimulate conversation and

communicate vision. 7. Continuous Improvement. Keep learning

and energy flowing within the firm and retain optimism.

Board of Directors vs. Board of AdvisorsA Board of Directors is a group composed of key

officers of a corporation and outside members responsible for general oversight of the affairs of the corporate entity.

Overseer of corporation Select and approve appointment of CEO and other

officers Fiduciary responsibility: legal duty to act in the best

interests of the corporation and its stockholders.

A Board of Advisors is a group that might be formed to provide the firm with advice and contacts.

Members should have extensive skills and knowledge of field (technology or business)

Non-fiduciary and does not engage in legal or official actions of the corporation.

Free from liability.

Examples of Boards of Directors

Solix Biosystems

Ventria Biosciences

Firefly Medical

Organizational DesignThe 9 Elements of an Organization 1.Mission and vision2.Goals and objectives3.Strategy4.Capabilities and resources5.Processes and procedures6.Talent7.Leadership and management8.Shared values and culture9.Structure and Style

Organizational DesignThe 9 Elements of an Organization 1.Mission and vision2.Goals and objectives3.Strategy4.Capabilities and resources5.Processes and procedures6.Talent7.Leadership and management8.Shared values and culture9.Structure and Style

Elements of Organizational Design

Organizational CultureOrganizational culture is the bundle of values, norms and rituals that are shared by people in an organization and govern the way they interact with each other and with other stakeholders.

Closing Remarks: Strength of a TeamStrength of a Team: Vinod Khosla