Finding and Hiring A+ Talent Dan Howell | Justin Kent

HR: Metamorphosis Startups begin like most organisms, a single cell that begin to divide and multiply until it grows into a mature, functional organization There is only one main function that needs to be done at the beginning, which is to grow the idea

Division Responsibilities As the idea grows, other functions begin to take form, which require more than the bandwidth of the initial founder. Tasks are easily correlated, because whatever you can’t do, you delegate to the other person.

Fundamental Shift 1: Doing vs. Managing As ideas grow, more and more demands on time require an increase in management responsibilities in proportion to implementing those ideas. % of Employees

Further Divide Responsibilities In addition to building out the founding team’s ideas, certain tasks and creative energy has to be delegated to others in the organziation Project management in a startup is still pretty homogenous; i.e. everyone is trying to just grow the business.

Fundamental Shift 2: Specialization of tasks When the company begins to grow, special skills are needed to perform tasks within the organization. E.g., Sales, Biz-Dev, Coding, etc… % of Employees

Even More Subdivision More and more people cram down the founder’s control of operations and development Project management begins to diversify, meaning that people are not all marching in the same direction. E.g., things like feature requests and account management are no longer in the same cubical

Fundamental Shift 3: Sloan takes over the organization The company, by nature, has to transition into an efficient (and redundant) organization that manages and implements daily operations. This usually begins to happen around 50+ employees These guys have never met!

A piece of the action. Not everyone knows each other and their roles in the company. Trust and delegated authority are institutionalized Project management is complex enough to require redundant positions and large amounts of management overhead

A closer look: Finding the right people It takes a blend of entrepreneurial spirit and management skills to be able to ride this complex growth. But how do we find people who will fit in this kind of organization?

Finding the Right Person Understand the Job Description – What critical roles will the person have? – Where will they fit within the organizational structure? – What skills and attributes are necessary for an employee to fill the job requirements successfully?

Finding the Right Person Search for Well Qualified Applicants Use existing networks of founders and employees – Personal referrals are the best way to find great employees Online Job postings Temp agency Headhunters SELL THE BUSINESS TO POTENTIAL EMPLOYEES AS YOU WOULD AN INVESTOR OR CUSTOMER!!!!

Finding the Right Person Interview and Offer – Create behavior-based interview questions that measure the skills and attributes needed for success. – Objectively evaluate each applicant – Complete due diligence by conducting background checks and checking references – Sell the business and their role when offer is extended

Summary Organization undergoes three fundamental shifts in organizational structure 1.“Managing” slowly replaces “Doing” 2.Functional experts slowly replace Jacks-of-all- trades 3.Classic corporate organizational structure grows naturally as a startup matures

Summary Understand the job description Search for well qualified applicants Interview (sell) Offer (negotiate)