Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter chapter Building and Managing a Winning Team 12 Prepared by Ron Knowles Algonquin College

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Business Plan Building Block Chapter 12 will help you:  Develop your leadership strategy.  Chart your organizational structure.  Prepare to organize and manage your business.  Develop a team that shares your vision and enthusiasm.  Prepare the management and personnel sections of your business plan. chapter 12

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Learning Opportunities  Understand the basic management functions of leading and organizing.  Chart your organizational structure.  Consider the benefits of a virtual or network organization.  Evaluate the skills that you and the members of your founding team possess.  Understand the value of an advisory board and external advisors …continued

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Learning Opportunities  Take another look at yourself and identify your strengths, weaknesses, and business needs.  Use the idea of balance to brainstorm your ideal team and scout potential team members.  Consider the merits of the just-in-time team, partnerships, and strategic alliances.  Realize the need for a mentor.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Leadership Motivating others to do what is expected of them because they believe in what you are doing and share your vision. Transformational leaders inspire exceptional performance through: –Visioning –Inspiring –Stimulating –Coaching –Team-building

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Organizing The organizing function deals with such questions as:  What tasks are to be done?  Who does them?  Who reports to whom?

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Virtual Structure Consider the benefits of a virtual or network organization:  Customer-driven  Flexible  Relies on mutual trust and teamwork  Promotes supplier competition  Delegates selling duties to selling agents, not staff  Offers a web of associates or partners  Relies on outside expertise

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter The Founding Team Three areas you should focus on are : –Management team profiles and ownership structure. Identify the people who are capable of assuming management roles when necessary. –Board of directors or advisory board. Think about forming a board of advisors that provides true guidance and advice to your company. –Human resources requirements Think about employees or independent associates your business may need and what their functions will be.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Building Balance Into Your Team You cannot do everything yourself. You’ll need a team with different skills and personalities. The key is balance.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter The Just-in-Time Team The just-in-time team is:The just-in-time team is: –Customer driven and opportunity focused. –Flexible. –Team-oriented. –Made up of partnerships, joint ventures, or strategic alliances. Benefits of the virtual team include:Benefits of the virtual team include: –Ready access to skills and experience. –Paying only once for services rendered. –Reduced administrative costs. –Higher reliability. –Improved quality and consistency. –Lower internal costs. –Having customers who are pre- sold. –Flexibility to address new market opportunities.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Consider Partnerships and Independent Contractors Joint ventureJoint venture –A partnership formed for a specific undertaking that results in the formation of a new legal entity. Strategic allianceStrategic alliance –A goal-oriented partnership formed between two or more companies to create a competitive advantage. Two common types of partnerships are: If employees are required, consider the benefits of the near employee or the independent contractor.

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Get a Mentor For independent business, mentoring is:  A mutually beneficial partnership between a more experienced entrepreneur or businessperson and an entrepreneur who is in the start-up phase. Qualities of an effective small business mentor include: A desire to help Positive past experience A good business reputation Time and energy to help Up-to-date knowledge in the field A learning attitude Demonstrated managerial and mentoring skills

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter The First Employees Think about hiring part-time or temporary workers Consider profit sharing Have a written job description When hiring, ask appropriate questions, such as: –How did you prepare for this meeting? –Why do you want to work for us? –How do your skills match the job description? –What would you do in the following situation? –What type of training do you think you need? –What are some obstacles you have overcome?

Copyright © 2007 by Nelson, a division of Thomson Canada Limited. Chapter Plotting Your Future Checklist qWhat major human resource issues does your business face, and how does your plan address these issues? qHave you included an employment schedule and wage costs in the appendix of your business plan? qHave you allowed for benefits in your labour plan? qDo you have job descriptions in place and plans to conduct annual performance appraisals? qDo your wage rates fit within the industry norms? qOutline your leadership style and your strengths and weaknesses. qHow might a “virtual organization” work for you? qIf you are starting out, at what point will you add a second or third person?