Tag Archives: Rainmaker

How Do You Build and Develop the Right Team? Four Points

Situation: A CEO has two issues. One concerns her COO about whom she is receiving complaints from staff as new processes are implemented, and the other is beefing up the sales team. On the latter issue she is concerned about both her ability to pay the high-level seller-doers that are needed to support growth and potential turnover. How do you build and develop the right team?

Advice from the CEOs:

  • The COO has already put the right process in place. Coach this individual to lighten up and allow everyone to adapt to the new regime.
    • As new processes are implemented coach him not to implement them rigidly at first. Allow people time to get used to the new process. Allow some flexibility in implementation so that the new processes can be adapted to the individual styles of the key players.
    • Over time tighten expectations gradually until each process is fully in place and running smoothly.
  • Have the COO communicate to the company that it’s growing, the focus is now on hiring, and the task facing the company is revenue growth.
  • For new salespeople, the investment cycle can be 6 months to full function.
    • In the mix of salary and bonus, weigh the bonus side heavily – the side that won’t become payable until the new individual produces.
    • This becomes an incentive for new salespeople to get up to speed quickly. It also helps to weed out those whose talents aren’t as sharp as they represented in the hiring process.
  • The salespeople are the key marketers for this company as well as the rainmakers and producers. It may be necessary to commit to this investment to ensure future growth and adjust the company’s annual earnings forecasts accordingly.

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How Do You Develop the Next Level of Leadership? Two Points

Situation: A CEO finds that it is time to develop the next level of management and leadership to support the company’s planned growth. She has received input from several sources but is curious as to how other CEOs have taken their staff to the next level. How do you develop the next level of leadership?

Advice from the CEOs:

  • Consider as an example how a law firm typically grooms and grows new partners:
    • Give them an area of responsibility.
    • Provide targets (expectations and metrics) and give them the opportunity to produce results.
    • Put the highest performers on track for promotion.
    • As is the case in a law firm, the candidates for management and leadership for will be a combination of rainmakers and the best talent in critical performance areas.
  • What should be budgeted for professional growth and development?
    • One example – provide up to 10% of hours per week for an individual who shows a true desire to improve their skills. Watch how the individual performs, but make sure that there is a measurable return before continuing this beyond a certain point.
    • Another alternative: let the candidate decide by matching 50% of what they are willing to spend on training and education. Require proof of completion of the course and likely an acceptable grade average if the training is academic and reimburse after the fact.
    • Ask the candidate to demonstrate the ROI for the training for which was reimbursed 50% before agreeing to continue to support additional education. Let them develop the calculation but insist on final review and approval of their analysis before continuing to fund additional education.

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How Do You Free Up More of Your Time? Four Observations

Situation: The CEO of a successful small software company is snowed under by day to day tasks. She wants to focus more of her time on business and infrastructure development. However, the company’s departments are not strong enough to run without her supervision. How do you free up more of your time?

Advice from the CEOs:

  • The first priority is to develop infrastructure that will allow the CEO to focus on strategic development.
    • To build this the company needs the right people to do the work.
    • Look at the daily task list and develop or hire new managers to oversee day-to-day non-strategic functions.
    • For example, offload payroll and back-end accounting to a bookkeeper.
  • Look at the gaps between where the company is now and where you, as CEO, want to be in terms of your time and responsibilities:
    • In addition to a bookkeeper, hire an experienced executive assistant – to keep you focused as CEO.
    • The company is growing rapidly. It is time to hire a human resources manager.
  • The company’s cash flow projection for the coming year indicates a substantial surplus.
    • Use this surplus to hire infrastructure.
    • In front of key clients, keep the impression that you are available to them; however, this is primarily for client relations. The CEO doesn’t have to do all the work demanded by clients.
    • Use the lawyer / rainmaker model. The rainmaker maintains key client relationships; however, the rainmaker has staff do 90% of the work.
  • The 7 States of Enterprise Growth Model indicates that the company is now in what’s called a Wind Tunnel. The critical activities in a Wind Tunnel are:
    • Letting go of methodologies that no longer work and acquiring new methods that do work, and
    • Hiring and training additional staff.

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How Do You Transition from Doer to Leader? Four Suggestions

Situation: The Founding CEO of a professional services company has always been deeply involved as a service provider and rainmaker in addition to his role as CEO. As the company has grown he sees the need to spend more time as leader of the company instead of being a doer. What can be done to facilitate this transition, and what expectations need to be created? How do you transition from doer to leader?

Advice from the CEOs:

  • Another CEO removed himself from day to day business development activity by bringing in a new rainmaker. These were the adjustments made to facilitate the process.
    • During the first year he worked with the new individual in a team or partnership role.
    • Compensation was results-based. Discussion of equity consideration was deferred until the individual proved herself.
    • The CEO moved himself out of the individual contributor role except as needed to support the new rainmaker’s efforts.
    • All of this was accompanied with clear communication to clients: “this adjustment will provide better service to you; here’s my number if you need help.”
    • Rainmakers are a different personality type. To be most effective, they must be able to say “my team.” Allowing this will ease the transition and improve the relationship.
  • Create teams to deliver solutions that have traditionally been provided by the founder.
    • Identify skill sets behind the roles that are being delegated.
    • Build an organization that will fill these roles.
    • Participate in team meetings, but as an advisor rather than as principal decision-maker.
    • Adapt role and behavior in phases to ease the pressure of the change on both the CEO and the team.
  • How does the CEO manage his own expectations as well as those of the company as he makes this transition?
    • Delegation initially takes more time and effort than doing the work yourself. Be patient and let the investment pay off.
  • Larry E. Greiner of USC was an expert on the study of organizational crisis in growth. Per Greiner’s model, the company is currently at stage one – moving from principal and founder to initial delegator. It may be a useful to study this model.

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How Do You Set Limits on Demand for your Time? Eight Tactics

Situation: A company’s CEO wants to segue from rainmaker-project manager to leader, with others taking the lead on projects. He has tried raising prices on his time, but clients are willing to pay the higher price so this hasn’t worked. How does the CEO set boundaries so that he is not involved in day-to-day project management?

Advice from the CEOs:

  • The most important question is: where’s the real battle – is it in the client’s or your own head? Is this really a client problem, or are you unwilling to let go? You need to answer this question before alternate strategies will work.
  • Look for the right project managers. You will change your hiring when the goal is for you to not be deeply involved.
  • Hire people who are better than you.
  • Gradually phase existing relationships to others.
  • In early work with a new client, set expectations so that your involvement is at the appropriate level and your team handles the heavy lifting.
  • Instead of attending meetings in person, use electronics – video conferencing. This saves the travel time for the meeting.
  • Don’t respond to client emails too quickly when you are copied – let others respond.
  • As one company grew, they invented new roles with high profiles but little work. These roles were figureheads for project leadership.
    • Project emails were set up so that all client emails went to the team, as well as the CEO, but the team would then respond to client questions.
    • Over time, the CEO was able to “just say no.”

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