Ownership, The Management Team, Organization, & Staffing PlanOwnershipManagement TeamManagement Team (cont.)Organization ChartsStaffing PlanOptional AdditionsAny Questions?Ownership, The Management Team, Organization, & Staffing PlanDr. Stan AbrahamDr. Stan AbrahamMHR 423MHR 423Spring 2005Spring 2005OwnershipWho owns the company?Who owns the company?Typically, the founding entrepreneur, 100%Typically, the founding entrepreneur, 100%Or the founding team, in equal partsOr the founding team, in equal partsSay, four people, 25% eachSay, four people, 25% eachOr the founding team, Or the founding team, unequallyunequally•CEO—50%, VP R&D—30%, VP Mktg—20%CEO—50%, VP R&D—30%, VP Mktg—20%State the ownership at the time of writing State the ownership at the time of writing the business planthe business planManagement TeamTypically, the founding owners also manage the Typically, the founding owners also manage the companycompanyDefine the roles that each person will playDefine the roles that each person will playBasic roles are marketing, operations, and financeBasic roles are marketing, operations, and financeIf it’s a high-tech company, R&D becomes criticalIf it’s a high-tech company, R&D becomes criticalSomeone has to be CEO or presidentSomeone has to be CEO or presidentOne or more people may play multiple rolesOne or more people may play multiple rolesGive thumbnail sketches of each person, emphasizing Give thumbnail sketches of each person, emphasizing relevant experiencerelevant experienceGive full resumes in an appendixGive full resumes in an appendixComment on how long this team has worked togetherComment on how long this team has worked togetherManagement Team (cont.)If some key positions are not filled yetIf some key positions are not filled yetAt least identify the person who will fill itAt least identify the person who will fill it•Say roughly when that person will join the firmSay roughly when that person will join the firmLeaving it unfilled and unidentified is bad, though Leaving it unfilled and unidentified is bad, though sometimes unavoidablesometimes unavoidableFutureFuture management positions can be management positions can be identified in the staffing plan (next)identified in the staffing plan (next)Organization ChartsExcept for very simple organization charts, Except for very simple organization charts, provide one for the inception of the businessprovide one for the inception of the businessAlso provide one you think will apply at the end Also provide one you think will apply at the end of two yearsof two yearsIt will show how you intend to grow the companyIt will show how you intend to grow the companyIt will highlight changing management responsibilitiesIt will highlight changing management responsibilities•For example, one owner could be acting CFO for the first year For example, one owner could be acting CFO for the first year until a real CFO is hired in Year 2until a real CFO is hired in Year 2Discuss briefly the two charts and how the Discuss briefly the two charts and how the company will be runcompany will be runStaffing PlanAt various points in the early life of the new At various points in the early life of the new business, people (managers and employees) business, people (managers and employees) will be hiredwill be hiredWhat types of peopleWhat types of people and and whenwhen form the form the basis of the staffing planbasis of the staffing planDo a staffing plan only if number of hires are Do a staffing plan only if number of hires are appreciable over the next two yearsappreciable over the next two yearsBy combining it with salaries and/or wages, it forms By combining it with salaries and/or wages, it forms the “salaries” line in the financial projectionsthe “salaries” line in the financial projectionsOptional AdditionsValues StatementValues StatementPhilosophy of doing businessPhilosophy of doing businessCompany cultureCompany cultureThe key things you look for in new hires to know The key things you look for in new hires to know they will fit in with the culturethey will fit in with the cultureAny
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