1. Building The Management Team In the Early Stages
Presented at: “Soup to Nuts Advanced Survival Strategies --
Building and Managing a Tech Startup in Volatile Times”
By the Software Development Forum, San Jose, CA, January 19, 2002
David R. Mather
Managing Director,
Technology & Venture Practice
Christian & Timbers
2/25/2019

2. Building the Management Team in the Early Stages
David R. Mather
13 years management & consulting experience
(Ford Motor Company, Sara Lee Corporation,
Warner Communications, Booz•Allen & Hamilton)
16 years executive search
Christian & Timbers
Established in 1980
Top 10 in U.S.
Top 15 Globally
Focus in CEO, Board director and senior level search
Fastest growing search firm in the industry for the past 5 years
2/25/2019

3. Building the Management Team in the Early Stages
Recruiting Strategy
Timing
Position Specifications
The Recruiting Process
The Selection Process
Compensation
Team Integration
2/25/2019

4. Building the Management Team in the Early Stages
Recruiting Strategy
People are the key element in building any company -- product or service
Quality of management is a “Top Three” criteria for investors
Recruiting strategy is a key element (often neglected) and an outgrowth of business strategy and organization strategy
2/25/2019

5. Building the Management Team in the Early Stages
Business Strategy (the “What”) 
Organization Strategy (the “How”)
Recruiting Strategy (getting to the “Who”)
2/25/2019

6. Building the Management Team in the Early Stages
Timing
The timing of adding specific management positions varies widely -- there is no formula
The timing is affected by the depth of experience of all members of the team
Timing is affected by the success of the business
Remember -- it takes time to recruit, so factor that into process
Often better to think “start date”to “effectivity date” days later
Usually better to be “early” than “late”
2/25/2019

7. Building the Management Team in the Early Stages
Position Specifications
Know what you’re looking for… and why
Characteristics of the position • Expectations • Scale • Skills • Knowledge • Human Qualities
Motivators
Understand the value proposition -- internal/external factors
Clarity is key
2/25/2019

8. Building the Management Team in the Early Stages
The Recruiting Process
Have a Process -- and a leader for the process
Understand how best to find and approach prospective candidates
• Direct Approach • Referrals • Advertising • Job Boards • Employment Fairs • Contingency Recruiting • Executive Search
2/25/2019

9. Building the Management Team in the Early Stages
The Recruiting Process
When thinking about “costs”, make sure you understand “opportunity cost” of time
Encourage Diversity
Utilize all resources -- investors, board members, customers...
2/25/2019

10. Building the Management Team in the Early Stages
The Selection Process
Designate a key contact for candidates
Designate an interview team -- enough but not too many
Structure the interviews -- evaluate, give information and sell, (the “onion” approach)
Momentum is key
Make crisp decisions
Do references degree view
Close hard
Remember -- despite what you hear, there still is a talent shortage
2/25/2019

11. Building the Management Team in the Early Stages
The Selection Dilemma
Experience vs. Human Qualities
The Normal Technique
HIRE FOR EXPERIENCE
Later
FIRE FOR HUMAN QUALITIES
2/25/2019

12. Building the Management Team in the Early Stages
However, a caution…
2/25/2019

13. Building the Management Team in the Early Stages
Compensation
Cash compensation is important again
Equity is more realistically viewed
Overall “opportunity costs” are being weighed… job content and career progression
A “pendulum swing” on risk… particularly for sales executives
2/25/2019

14. Building the Management Team in the Early Stages
A Note on Compensation
If you pay peanuts…
you get monkeys!
2/25/2019

15. Building the Management Team in the Early Stages
Team Integration
Develop an “employee integration plan” -- different from an “orientation”
Communicate expectations -- individual & team
Evaluate and communicate often -- with clarity
Recognize individuality within the team
Find ways to integrate team outside of work… it helps!
2/25/2019