Tag Archives: Road Map

What is the CEO’s Job? Is It for Me? Four Recommendations

Situation: A CEO wants to significantly grow his company, either to prepare for an IPO or to become an interesting takeover target. However, he struggles with delegation. When responsibilities are delegated, the job isn’t done to the CEO’s satisfaction and he ends up doing the work himself. He asks: what is the CEO’s job? Is it for me?

Advice from the CEOs:

  • In order to grow the company to the desired level, it is necessary to hire competent people and delegate. The most important position will be a COO with deep experience organizing people and functions.
    • The CEO’s role is to provide the vision and strategic objectives for the company. The COO’s role is to assure that the right people are in place or hired to do the work necessary to realize the vision and operational objectives.
    • The CEO-COO relationship will be pivotal. If there are specific ways that the CEO wants to see things done, these must be clearly delineated in discussions with the COO.
    • The role of the COO will be to organize the company to reach the growth objective.
  • Hire a competent, talented HR person to plan the organizational development road map, and the positions that must be filled in stages to reach the goal.
    • The growth plans of the company are ambitious. Absent significant change, growth will be limited to a fraction of the current objective.
    • Working with the COO and HR person, build the organizational chart for the size company that the vision imagines. Fill the chart with current personnel where the fit is appropriate. Determine where the gaps exist and build a plan to hire these people in stages.
    • The E-Myth Revisited by Michael Gerber provides an exercise to accomplish this.
  • Hire a high-level assistant to help in areas where the CEO finds it difficult to let go. This will be another key relationship and will be important to learning how to let go.
  • Hire a CEO coach.
    • This will likely be an individual with significant experience who has achieved the growth envisioned by the strategic plan.
    • The CEO Coach will help to draw lines between delegating and micromanaging and will help the CEO to learn to effectively delegate to qualified people.

How Do You Structure an International Deal? Six Points

Situation: A CEO is evaluating a potential deal with an Asian company that is synergistic with the strategy of the CEO’s company. The structure would include a US entity, run by the CEO, and an Asian entity that would provide essential technology. How do you structure an international deal?

Advice from the CEOs:

  • Before you agree to a deal, raise your own level of trust with the key players of the Asian company so that you are comfortable with the investment of time and money that you will make.
  • Assure that you will have the focus and attention of talent that you will need within the Asian company. This is better done through mutual understanding and agreement than through contract. In Asia, relationships are personal, not contractual, though for legal reasons personal understandings must be backed by a good written contract. This will likely mean that you will have to travel to Asia to spend time with the key personnel upon whom you will rely.
  • Make sure that there is agreement on a clear road map for both the US and Asian entities.
  • You will need a solid bridge person who can speak both the language and culture of your Asian counterpart – not just someone who says that they can, but who can deliver. Test this relationship before agreeing to the deal.
  • Structure the deal so that the US entity owns exclusive rights to the technology world-wide with the exception of the home country of the Asian firm. Assure that you own an acceptable piece of the US entity.
  • Don’t complicate the exercise by creating additional shell companies in Asia. Shell companies can make it difficult to maintain accountability and assure that you gain the value that you seek.

What Process Do Use to Add a New Sales Person? Five Thoughts

Situation: A CEO wants to add a key person in sales. For a long time most sales have been handled by a long-term employee with a strong sales background in the company’s market, often working closely with the CEO. This sales person is nearing retirement. What process do you use to add a new sales person?

Advice from the CEOs:

  • Involve non-sales personnel in the interview process. These individuals are important to your company culture, and will necessarily be working with the sales person. They may bring insights to the interview process that you do not see. In addition, involving them in the selection process will smooth the on-boarding process of your eventual hire.
  • Work with current staff to create a 90-day on-boarding plan for the new person. This helps in two ways: it identifies important characteristics that you will want to see in a good candidate, and it provides an on-boarding road map that will help the new hire to succeed.
  • Consider going one step further and have current personnel identify and pre-qualify candidates for you.
  • Use creative as well as traditional methods to identify potential candidates. In the process, make sure that you are not misrepresenting your situation or creating legal or ethical problems.
  • Have your options in place when you are ready to move on a particular candidate.