startup accelerator 2014: finding, managing for high performance
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© 2012 ASPIRE. All rights reserved. Confidentiality: The concept and methodologies contained herein are proprietary to ASPIRE.
Duplication, reproduction or disclosure of information in this document without the expressed written permission of Aspire is prohibited.
Managing for Performance
Three Lessons at McKinsey
Lesson # 1: There is no HR. Everybody is HR
Lesson # 2: Hunger and Pride is a deadly combination
Lesson # 3: Patience Pays
FreeMarkets
Lesson # 1: Spend time building the team
Lesson # 2: People may not tell you the truth (e.g. Sales)
Lesson # 3: Patience Pays
Lesson # 4: Lead from the front
WNS
Lesson # 1: Spend time building the team
Lesson # 2: Patience Pays
Lesson # 3: Lead from the front
Lesson # 4: Measurement matters (KPIs / KRAs)
www.wnsgs.com
Confidential & Proprietary © WNS Global Services 2005 www.wnsgs.com 6
Put People First
Vision & Values
Communicate management values across the organization
Encourage employees to contribute to company vision and help achieve it
Communicate vision through every critical path – from hiring process to customer service
Rewards & Recognition
Ensure a benchmarking system that measures performance across the board
Ensure recognition and rewards for above average performance e.g. cash incentives
Encourage job rotation, internal promotions, skills upgradation, mentorship programmes
Fun Calendar Create social bonding e.g. annual
ball, monthly beer bash, regular dinners
Hold offsite events - training, seminars, meets, roundtable talks
Employee Satisfaction
Well defined career path, regular training programmes
Flexible work schedule, job enrichment
Open door policy, 360 degree quarterly performance appraisal
Customer Orientation
Inculcate the “Extending Your Enterprise” vision e.g. create client teams with client IDs
Encourage, enhance direct interaction between team leaders and clients
Create clear understanding of client work, relevance of team role and quality work to be achieved during the whole process
People Mix
Various age brackets, professional background and regional/cultural milieus
Source: WNS Global Services
October 29th, 2005
Unleashing Your Enterprise
Looking Back,Moving Forward
Money Can Buy Me Love
We Did It Our Way . . .
Flying Without Wings
Hard Night's Day
Key Messaging
Aspire
Lesson # 1: Tradeoffs: Skills versus Behaviour
Lesson # 2: Inspire. Inspire. Inspire
Lesson # 3: Measurement matters (KPIs / KRAs)
Lesson # 4: Mentorship versus Management
6th Employee Conference
Manesar, Haryana
3-6 June 2009
“No Looking Back,
Just Moving Forward”:
Three Months to Profitability
11 ©2009 Aspire. All rights reserved. Confidentiality: The concepts and methodologies contained herein are proprietary to Aspire. Duplication, reproduction or disclosure
of information in this document without the expressed written permission of Aspire is prohibited.
Right Compensation
Industry Leadership
Intellectual Stimulation
Learning & Success
Superior HR Processes
Fairness, Equity &
Meritocracy
Fast Industry Growth
Training &
Development
Promotions & Growth
Noble Mission
Start-up Challenge
Ownership & Stock
Professional, MNC
Environment
High Industry
Growth
Constant Touch &
Support
Social Acceptance
Reward & Recognition
Off-sites, Awards, Road
Shows
Personal R’ship w/CEO
ATTRACT
EXCITE
RETAIN MOTIVATE
Put People First (1 of 2)
Entrepreneurship
13 © 2010 ASPIRE. All rights reserved. Confidentiality: The concept and methodologies contained herein are proprietary to ASPIRE. Duplication, reproduction or disclosure of information in this document without the expressed written permission of Aspire is prohibited.
17 November, 2011
1. Start Small, Think Big
• We started Aspire as a national business (in 2007) from
Day 1 with four academies in all four parts of India.
Customers and Shareholders loved it. Big Mistake.
Advance orders and investor herd mentality misled us.
• Although successful, our “conversion rate” was wanting
across the board, due to insufficient product validation
•In 2008, with the global downturn reaching India, and job-
freezes / layoffs being announced, we were sandwiched
between aspiring candidates and customers reneging on
contracts. Student anger was scary.
• We had to shut down all academies, return fees and
took a big financial write-off
• Moral of the story: Never mind the advise. Start small,
think big. Else, all VC/PE metaphors will come true:
•Put the horse before the cart
•Don’t shoot the elephant
•Don’ t wear the Emperor’s new clothes
•Fools rush in where Angels fear to tread
•If it’s too good to be true, it’s probably not true
14 © 2010 ASPIRE. All rights reserved. Confidentiality: The concept and methodologies contained herein are proprietary to ASPIRE. Duplication, reproduction or disclosure of information in this document without the expressed written permission of Aspire is prohibited.
2. Put People First
17 November, 2011
•Know who’s on the bus (in Jim Collins’
famous words) even if I can’t agree with his
“Good to Great” tenet 100%
•As things went wrong, we ran a very high
attrition rate, often as high as 25% every
quarter! I felt isolated as I lost founding team
members, senior executives, etc.
•It is ok to trade some capability with trust OR
merit with commitment: It is important that the
team not only has the right mix of energy &
experience but even more importantly, there
must be commitment and trust.
•From Day 1, “Till IPO, us do part” maxim
must apply
15 © 2010 ASPIRE. All rights reserved. Confidentiality: The concept and methodologies contained herein are proprietary to ASPIRE. Duplication, reproduction or disclosure of information in this document without the expressed written permission of Aspire is prohibited.
3. Stick to the Knitting
17 November, 2011
TECHNOLOGY ILLUSTRATION
•First Hire: Product Development Head. our ivory tower
was built because we had Blind lead the Blind. We did not
have an established business model, processes and
requirements. Writing specifications for a business model
which kept changing turned out to be our waterloo.
•Caveat Emptor: We quickly bought “Rapid Application
Development” using our vendor’s proprietary BPM
(business process management) engine on .NET, assured
that it will take a fraction of time and cost.
•Diversify Risk: We decided to outsource development,
hosting, administration, support and maintenance to one
Firm to make it attractive for him to serve us. Despite being
a management accountant, I forgot the basics of audit and
put all our eggs in one basket.
•Keep it simple; do not over-engineer: Several of our
features like Video CVs, Online scheduling of assessments,
Weekly candidate progress report inside Training
Academies, etc. were never used by our customers, who
preferred Excel spreadsheets. In six months, we had 20
pages of over-engineered specifications, never to be used
in real life. Ignorance is bliss.
TracHire: our Ivory Tower
16 © 2010 ASPIRE. All rights reserved. Confidentiality: The concept and methodologies contained herein are proprietary to ASPIRE. Duplication, reproduction or disclosure of information in this document without the expressed written permission of Aspire is prohibited.
4. Stay Asset Light
17 November, 2011
• Aspire’s decision to build four large academies and
tens of Career Centres for sourcing turned out to be
disastrous within 12 months
• On hindsight, a Services business must stay as
Asset Light to be able to extend the life of each dollar
• The writeoffs cast perpetual shadow on future
financials and undermine ability to raise future money-
for “Doubt” is sufficient to scare the investor
17 © 2010 ASPIRE. All rights reserved. Confidentiality: The concept and methodologies contained herein are proprietary to ASPIRE. Duplication, reproduction or disclosure of information in this document without the expressed written permission of Aspire is prohibited.
5. Raise Professional Money
17 November, 2011
• Professional Money puts the right business pressure, Family
& Friends money puts additional moral pressure; always raise
professional money
• Our success with Angel Round, including returning money,
got into our heads
• However, even if you are riding the wave (as Aspire did),
never overvalue the company despite temptations. The
disappointment of “future down-rounds” can overshadow the
initial excitement of high valuations
• Time both Angel and VC capital well
• Remember, shareholders must always make money
• Also remember, Investors, despite their pitch, will always be
“fair weather friends”- they have a job to do, it is not their
money. Boardrooms will be hot if business does not perform
financially !
• Finally, despite everything, more money raised is better
18 © 2010 ASPIRE. All rights reserved. Confidentiality: The concept and methodologies contained herein are proprietary to ASPIRE. Duplication, reproduction or disclosure of information in this document without the expressed written permission of Aspire is prohibited.
6. Keep the faith!
Commit for Passion, not Wealth- If you just chase the pot of gold, chances are we won’t get there
Choose Profits over Scale- Demonstrate to yourself and others that the business model works. Remember, investor views change over time
Develop a thick skin. Keep a conscientious heart- Especially in social entrepreneurship, as you run into issues of for-profit companies- face issues head-on. Focus on improving outcomes for the disadvantaged customer- who need help
Never Give Up- Thomas Edison said “Our greatest weakness lies in giving up. The most certain way to succeed is to try just one more time”
31 May, 2012
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