Tag Archives: Operation

How Do You Build Teamwork Across Account Teams? Four Observations

Situation: A CEO is concerned that there is a lack of teamwork across the company’s account teams. Often, they compete with each other rather than sharing knowledge and information. While some competition is good, too much can stifle growth. How do you build teamwork across account teams?

Advice from the CEOs:

  • It looks like the company needs to change its account management culture. There is a need to review the entire operation and rethink how the account teams interact with each other.
    • Schedule meetings with the full account staff – attendance required – describe the concern and encourage teams to share ideas and resources.
    • The commission structure drives performance. Tie financial incentives to collaboration. Reward the teams on collaborative efforts disproportionately to individual team effort – Y% commission for individual team effort vs. 1.5 x Y% commission for collaborative effort.
    • Increase monitoring of revenue and client acquisition – for the full group as opposed to individual account teams.
  • To keep a manageable level of competition among teams, group them into “leagues.” The leagues compete against each other for production and financial rewards. Encourage them to develop social interaction to build the league spirit.
    • A twist on this is temporary “leagues.” Shift team and league groupings from time to time to share best practices and resources. Measure the results. Track and reward the best league performance over time.
    • Be sensitive to the possibility that individuals may respond differently to league vs. individual team incentives. Those who respond more positively to the league concept can become the collectors and disseminators of best practices among the teams. This creates a status incentive to complement the financial incentives.
  • Consider the peer-programming model from the software industry. In this model, two people are occasionally teamed with one as lead and one as back-up. Let them learn from each other for a period and then return to normal operation. The same can be done with teams.
  • Does the company really have a problem? If the corporate competition leaves at 5:00PM but the company’s staff are working weekends to produce, maybe things are OK!

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How Do You Prepare to Sell a Company? Seven Suggestions

Situation:  A CEO has hired a banker to advise on the potential sale of a privately-held company. What else should she be doing in advance of the sale? How do you prepare to sell a company?

Advice from the CEOs:

  • Prior to moving forward with a banker, it is necessary to prepare a privately-held company for sale. Get an advisor – not a banker – to assist you. Search online for a good mergers and acquisitions advisor. If you know CEOs from other local companies, network with them to discover high quality advisors.
  • In selling a company, the final deal must provide for the survival and continuing effective operation of the company. A buyer may want assurances from you, or assistance in the transition. This can have a significant impact on your final payout.
  • Be prepared for the reality that you or someone else within the company will have to remain with the company post-sale. If this is to be another person, this individual will be very important to you during the negotiation process with potential buyers. Keep this individual up-to-date with your intentions and plans.
  • A company is more than numbers – it is a story. The story must be very crisp and compelling.
  • The buyer will want to perform due diligence before offering you a price and setting conditions on a purchase. This may involve more than you and your top managers. Communications within the company will be critical to keeping managers and employees informed and on-board.
  • You will want to have two or three potential buyers, both in case a top prospect fails, and to assure competition and a higher sale price.
  • Think carefully about your next move from a personal standpoint. Being at leisure may not fulfill you. What do you really want to do for the next segment of your life? This is far more important for you, personally, than you may estimate.

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How Do Get a Shanghai Office Up to Speed? Six Suggestions

Situation: A company recently set up an operation in Shanghai. An immediate shock has been that that the Chinese engineers have not been able to solve problems creatively. To date their solutions are limited to following an outline provided by the home office. How does the company address this? How do you get a Shanghai office up to speed?

Advice from the CEOs:

  • Current Chinese culture is to do what you’re told, and not to vary from the direction given by those to whom you report. However, these are smart people. Given time and training they will get through this. Can you be patient enough to allow this to occur?
  • The most important role in your Shanghai location is a trusted, competent Chinese General Manager. This individual can get you where you want to be the fastest. It is also the hardest position to fill in China.
  • One option is to investigate connections through the SCEA – Silicon Valley Chinese Engineers Association. Many SCEA members are Chinese who have been educated in the US but want to return to China. You may find good candidates here.
    • The best candidates have bi-cultural exposure – they understand Chinese culture, but also understand US standards, expectations and operations.
    • Be sure to check US references of any candidates who are currently in the US.
  • Early operations and adaptations are the most difficult. Talk to people in Shanghai who have solved this problem.
  • Develop a separate project selection / development methodology for projects you want to transfer to China. This will change as the Chinese employees begin to approach US standards.
  • As you hire new Chinese employees, look for individuals who play and write music. They are naturally more creative. Microsoft has used this approach successfully in China.

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