http://leanstartups.com Best practices in lean business operations, technology, and other areas pertinent to success of startups, small, and mid-market businesses. Mon, 26 Jul 2010 04:38:05 +0000 http://backend.userland.com/rss092 en 3 Problems With the Way Startups Manage Talent is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I am sure you folks have realized that I’ve been “off air” for awhile. The combination of helping out Daily Grommet and joining Pixability has shriveled my capacity for writing to zero. But, I am getting back on the horse and definitely have a lot of material from the “startup trenches” to share.So that all said, today I want to focus on some of the missteps many of us take in managing our most precious resource - people. I want to point out three major ones I have seen lately in the entrepreneurial community...]]>http://leanstartups.com/3-problems-with-way-startups-manage-talent.html?utm_source=rss&utm_medium=rss&utm_campaign=3-problems-with-way-startups-manage-talent Does Recruiting a Diverse Team Mean Discriminating Against the Majority? is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I recently had a conversation with a friend about the importance of building a diverse team. It is a subject I spend a lot of time on, since my own personal experience and countless research articles have shown that a diverse teams deliver better product and increased efficiency. If you are interested in this research, follow professor Vivek Wadhwa on Twitter. He usually has links to it that do not require journal subscribtion.Then my friend uttered something that I commonly hear – “are you saying you should engage in discrimination against the majority?” My answer that is: if that is what you call “discrimination”, then hell yes!Not only should we avoid hiring clones of our current employees, but we should shy away from building an environment and employee benefits based on the “hot” formula that is only appealing to the majority. Hiring “blindly” and on qualifications alone is no longer good enough! Bringing great skills and knowledge onboard is no longer good enough! Every new person you add should bring in a healthy dose of a unique perspective, experience, culture, personal story, etc. The truth is - people like to hire others who are like them. So you must make an effort to hire outside of your "comfort zone”.]]>http://leanstartups.com/should-we-discriminate-against-majority.html?utm_source=rss&utm_medium=rss&utm_campaign=should-we-discriminate-against-majority Putting Together a Strong Technical Team is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Introduction by Apolinaras "Apollo" Sinkevicius: this guest post by Paul Morgan might have the language directed at mid to larger size companies, but the vast majority of principles mentioned are highly applicable to the world of technology startups. Yes, according to my personal experience and widely available statistics, most of you will not make it past the team of 10 and this may not help you. But a good number will and strong technical teams will become a huge issue. Having had a chance to grow companies past the 100-employee mark, I know growing pains show up much earlier than expected.This will challenge most moderate to large companies involved in software development traditional views.  For the purpose of this discussion I will assume the technical team is involved in developing a web-based application. From the results you can pick and chose how you want to arrange your team.]]>http://leanstartups.com/putting-together-strong-technical-team.html?utm_source=rss&utm_medium=rss&utm_campaign=putting-together-strong-technical-team Defining the Difference Between (Business) Operations and Technology Operations is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I feel like I correct perceptions about what operations professionals are and are not at least 2-3 times per week. Most folks, especially from organizations in technology-heavy industries, automatically assume “operations” is purely systems management.  While an operations person may really just be a senior network administrator in some organizations, the true responsibilities of a (business) operations manager/leader are much broader. Unless one specifies they are referring to technology operations, people should always assume they are talking about business operations.]]>http://leanstartups.com/business-and-technology-operations.html?utm_source=rss&utm_medium=rss&utm_campaign=business-and-technology-operations Advice for Women in Technology and Other Male-dominated Fields is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I’m sure most of you have read my article “Time to end the frat house culture! We need more women in our midst.” I want to see more women in leadership roles and the ranks of techies, scientists, and entrepreneurs. This not only benefits society, but is also great for business (see my previous article for the data).This article was inspired by several months of conversations with successful female professionals about the subject. I also had the pleasure attending a great event organized by MITX and Girls in Tech called “Lessons Learned: Women’s Careers in Review”. Here are 7 “commandments” that summarize everything I’ve learned so far:]]>http://leanstartups.com/advice-for-women-in-technology-and-other-male-dominated-fields.html?utm_source=rss&utm_medium=rss&utm_campaign=advice-for-women-in-technology-and-other-male-dominated-fields How to Get It All Done with 2 People in Your company is a post from: Lean Startup Blog - rants and raves from the startup trenches.

EditMe is a two person startup. We consider ourselves a startup, because we're still searching for the product/market fit that can result in scalable growth. But, we're a bit different from your typical startup in that EditMe has bootstrapped every stage of growth by providing real value to customers who have validated (or not validated) the product through real dollars. In a world where most entrepreneurs spend a majority of the time refining their deck, it seems strange to ignore outside investors. Impossible even. Here's how we do it.]]>http://leanstartups.com/how-to-get-it-all-done.html?utm_source=rss&utm_medium=rss&utm_campaign=how-to-get-it-all-done What to Look for in a Chief Right Hand Person (COO, VP of Operations) is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Last week a founder of a software development company asked what to look for in a COO on answers.onstartups.com. Since this is a fairly common question to me, I decided to expand upon the answer I posted and further describe what attributes a great business operations leader/professional should possess.Bit of background: I have been in operations for almost my entire career and have had some incredible mentors along the way. I spent 2+ fun years as the heading operations for an awesome software development company that we grew to 120+ employees by the time I had to move. It was an honor serving some of the smartest software development professionals in the market.So here are the points one should consider when looking to add a Chief Right Hand Person to your team...]]>http://leanstartups.com/picking-chief-right-hand-person.html?utm_source=rss&utm_medium=rss&utm_campaign=picking-chief-right-hand-person Lessons Learned: 4 Rules for Making it as a Young Entrepreneur is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Six months ago, I was fresh out of a one year entrepreneurship master’s degree program and looking to join a startup or maybe start one of my own… I really didn’t know.  Finding your way when you’re a young, aspiring entrepreneur isn’t easy; there’s a lot of thrashing, uncertainty and mistakes.  Embrace this. Those scars will make you stronger and people will notice if you make things happen.Of all the advice anyone could give an entrepreneur getting started, the one I think matters most is to HUSTLE.As a young person, the best thing you can do is Hustle.  It’s the one advantage we have over those older than us that have that infamous word…Experience.  Hustle can make up for a lack of experience, especially if you hustle intelligently.Here are the rules I’ve learned for making it as a young entrepreneur:]]>http://leanstartups.com/4-rules-for-young-entrepreneur.html?utm_source=rss&utm_medium=rss&utm_campaign=4-rules-for-young-entrepreneur Perfecting Your Way to Irrelevance – Six Sigma in the Startup is a post from: Lean Startup Blog - rants and raves from the startup trenches.

In the late 90’s, the Six Sigma quality improvement process swept through the corporate world, led by early and vocal adapters such as Motorola and GE.  For those who are not familiar with Six Sigma, it is a process for making significant quality improvements through a rigorous five-step data- and statistical-based approach (Define, Measure, Analyze, Improve, and Control).  The siblings of Six Sigma, such as Design for Six Sigma (DFSS) and Lean Six Sigma, expand its applicability to new product design and manufacturing flow. You can immerse your products from cradle to grave in the Six Sigma process to achieve total quality control nirvana.While this may be great if you have the resources of a GE, and are involved with markets and products that are more mature and slow to change, I’m here to tell you that Six Sigma is anathema to the nature of the startup. ]]>http://leanstartups.com/six-sigma-in-the-startup.html?utm_source=rss&utm_medium=rss&utm_campaign=six-sigma-in-the-startup Avoiding the Need to Cut Costs is a post from: Lean Startup Blog - rants and raves from the startup trenches.

“Cutting costs” has been the buzz phrase for the last decade or so. In some cases, companies got drunk on cheap money and plentiful investors, and in others the unchecked management flaws of greed and vanity led to company bloat. Whatever the root cause, we seem to be only treating the symptoms of the problem. We first look at our staff for the “fat”, then our business process, then… well by then it is usually too late. Although I have mastered the art of cutting costs, I am very aware of the reality: you can’t cut/lose fat without cutting into muscle.So instead of treating the symptoms, how do we avoid the root cause of wasteful spending?]]>http://leanstartups.com/avoiding-the-need-to-cut-costs.html?utm_source=rss&utm_medium=rss&utm_campaign=avoiding-the-need-to-cut-costs Earned vs. need-based loyalty is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Call me old fashioned, but I cringe every time I hear another claim about how we are moving into the age of “careerism” and “just in time staffing”. Why? Because we always hear about this fad right at the tail end of every downturn.  It’s like herpes spread by some “experts” who never had to operate a company.I am yet to see a substitute for a loyal team - during bad and good times. Earned loyalty takes time to build, compared to need-based loyalty, so you must build a strategy to foster earned loyality long before you need to “cash it in”.What do I mean by earned loyalty vs. need-based loyalty?  Many people are staying with their current companies right now because of need-based loyalty – they have mortgages and car notes to pay. But this type of loyalty has no longevity because the company did not earn it. Yes, I said it: earning the loyalty is completely the job of the company and its leadership.Progress is a #1 motivator for knowledge workers (money is not even in the top 3) and I think it is what helps keep people loyal. Here are some methods that could help build that earned loyalty...]]>http://leanstartups.com/loyalty-types.html?utm_source=rss&utm_medium=rss&utm_campaign=loyalty-types Dangers of big titles is a post from: Lean Startup Blog - rants and raves from the startup trenches.

In 2007, I was interviewing with a later stage stealth startup in Boston. During my conversation with one of the co-founders, I asked about her title. Her answer has stuck with me to this day. She said: "if you are in a startup and have a title, you are not doing enough work"! This sentiment resonated with me and made me think about why big titles are so dangerous.I have worked for several very innovative "flat hierarchy" companies, where titles were irrelevant, that had rapid growth fueled by passionate employees who always went above and beyond to make customers happy. It is no surprise that at one company we had a 95% customer referral rate and the most loyal customers I have seen in my entire career. I also made the mistake of joining several companies that developed org-charts before they fully figured out what their customers wanted. The result was an environment of heavy office politics, innovation-squashing dictatorships, and clients leaving not too long after discovering the dysfunction. No amount of effort could turn these companies around and two out of the three went out of business.So why are big titles so dangerous?]]>http://leanstartups.com/the-operations-guy-big-titles.html?utm_source=rss&utm_medium=rss&utm_campaign=the-operations-guy-big-titles Change is in the air! Time to pivot. is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I’ve recently been thinking about how I can further help the readers of this blog and earn even more good “business Karma”. Several of you have mentioned that you’d like a broader range of topics covered on this blog, so I have decided to take LeanStartups.com to the next level by expanding it and adding guest bloggers to my team. As we like to say in the world of startups – time to pivot.I am actively looking for passionate practitioners of marketing, finance, accounting, recruiting, and staff development to share their expertise to help capital efficient lean startups increase the odds of surviving.]]>http://leanstartups.com/time-to-pivot-change-is-in-the-air.html?utm_source=rss&utm_medium=rss&utm_campaign=time-to-pivot-change-is-in-the-air How a foosball table can kill your startup – part two is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Since an article I wrote in June of 2009 called “How a foosball table can kill your startup” is still sparking attention and conversation, I think the time is ripe for me to expand on the topic. Yes, I still believe that tchotchke “benefits” do nothing but waste money.  Instead, use your resources to attract new, retain your best talent, and improve your team’s happiness.Here are additional issues for us to consider...]]>http://leanstartups.com/how-foosball-table-can-kill-your-startup-part-two.html?utm_source=rss&utm_medium=rss&utm_campaign=how-foosball-table-can-kill-your-startup-part-two Beefing up your lean marketing is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Guest blog post by Greg Strosaker As the Lean Startups blog grows, I want to start bringing in other subject matter experts to help better serve my readers. Therefore, I am very excited to introduce Greg Strosaker as my first guest contributor. Greg, who previously worked for 13 years with General Electric as an engineer, has spent the past four years heading up marketing at several small- to mid-size material and industrial equipment firms.  Greg also runs the Constant Cogitation blog, where he discusses marketing, strategy, and leadership topics.Since my last post drew some attention from the marketing folks (and struck a nerve of those who refuse to grow and evolve), I wanted to bring in the perspective of someone in a different industry who makes a living from marketing.]]>http://leanstartups.com/beefing-up-your-lean-marketing.html?utm_source=rss&utm_medium=rss&utm_campaign=beefing-up-your-lean-marketing We don’t need marketing – we need customer anthropology is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I wasn’t able to make it to LaunchCamp Boston today, but was still able to virtually participate via the live video and Twitter streams. During a discussion on Twitter with two great marketing folks, Bobbie Carlton and Rachel Levy, I made several remarks...]]>http://leanstartups.com/we-need-customer-anthropology-not-marketing.html?utm_source=rss&utm_medium=rss&utm_campaign=we-need-customer-anthropology-not-marketing Customer service in the age of the social media is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I can’t claim I was early social media adopter, but I have been on Twitter, Facebook, and LinkedIn for a while now and built a following.  I have met the majority of my followers in person. I am also not shy about reviewing businesses on Yelp and other sites, because I believe both positive and (especially) constructive negative feedback can improve businesses.We have seen some massive changes in the last decade as the impact of word of mouth has grown exponentially as each new communication platform became mainstream. While a story of poor customer service experience used to rarely travel beyond a close circle of family and friends, everything has changed now that we have entered the age of social media. The tables have turned and the transparency and the accountability levels of the businesses are way up (intended or unintended). If you screw up, there will be video parodies of your business on YouTube and Yelp reviews containing the gory details - your (now former) customers will freely share their displeasure with thousands of their friends and followers before the dust has settled. Talk about a ripple effect!]]>http://leanstartups.com/customer-service-in-the-age-of-the-social-media.html?utm_source=rss&utm_medium=rss&utm_campaign=customer-service-in-the-age-of-the-social-media How to be an entrepreneur/intrapreneur and not ruin your marriage is a post from: Lean Startup Blog - rants and raves from the startup trenches.

The associated risks of starting a company are hard enough when you are young and unattached (though lack of experience and naïveté keeps you brave and motivated). But being in a long-term relationship, married, or a parent adds a whole new level of complications, risks, and motivations.It is not surprising that VCs like investing in companies led by young, single, male entrepreneurs (some think this is because it is easier to control them and make them work 24x7).  But my own experience tells me that the vast majority of entrepreneurs are married and many are even parents. Our wives/husbands/partners are the true unsung heroes. Some of the most successful business people have a great supporter behind them.]]>http://leanstartups.com/entrepreneurs-and-marriage.html?utm_source=rss&utm_medium=rss&utm_campaign=entrepreneurs-and-marriage Why I LOVE critics and why you should too is a post from: Lean Startup Blog - rants and raves from the startup trenches.

Since I don't allow anonymous comments on my blog*, sometimes I get e-mails with long diatribes on why I am wrong. Some are quite extensive and come from people who take my critiques to heart (sometimes taking things too personally). Not only do I love these e-mails, but if you send one, be ready to have a dialog!I am absolutely honored to hear comments in person or via social media. I enjoy knowing when my answers to a question on LinkedIn (or Answers.onstartups.com) or another blog helps someone. But the world would not advance anywhere if everyone agreed! Therefore, I also highly value feedback from those who disagree with me (as long as it is presented in civilized manner). My critics and detractors keep me on my toes! No one is right all the time and I often advocate that being wrong often helps us move our companies forward faster.Here’s why I love my critics and why you should too...]]>http://leanstartups.com/i-love-my-critics-and-you-should-too.html?utm_source=rss&utm_medium=rss&utm_campaign=i-love-my-critics-and-you-should-too The 7 deadly sins of entrepreneurs is a post from: Lean Startup Blog - rants and raves from the startup trenches.

I love startups and small businesses! It has been an unpredictable ride over the past 12 years, but I have always enjoyed working and meeting with some incredibly interesting people. I recently met Jason (founder of GreenhornConnect), and he invited me to write a guest blog post sharing some of the major mistakes I think entrepreneurs make. I have made tons of them myself and have also seen many others shoot themselves in the foot. But, perhaps this list will help you avoid some of the biggest ones!]]>http://leanstartups.com/7-deadly-sins-of-entrepreneurs.html?utm_source=rss&utm_medium=rss&utm_campaign=7-deadly-sins-of-entrepreneurs