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Lead to WinSlide 1
Day 4, Tuesday August 25
David Hudson Overview of Days 4-6
Chuck Colford & Brian Hurley Operations
Mike McInerney & Irene Kohut Aligning human resources with business strategy
Kevin Goheen Optimizing SR&ED claims
Tony Bailetti Peer opportunity assessments
Doug Colley NRC Industrial Research Assistance Program (IRAP)
David Hudson Company introductions
Lead to WinSlide 2
Overview of Days 4-6
David Hudson
Lead to WinSlide 3 August 25, 2009
Overview of Days 4-6
Day 4• Founders, boards, teams and
operations• Human resources• SR&ED and IRAP• Peers’ opportunity assessment• Participants introduce their
companies
Day 5• Sales• Pricing and delivery• Key legal issues• Realizing business value through
patents and intellectual property
Day 6
• Reviewers’ opportunity assessment
• Phase III: Accelerate sales to first customers
• OCRI, Ottawa Chamber of Commerce and DE-CLD
• Social
• Certificates of Achievement
Lead to WinSlide 4 August 25, 2009
Requirements
• Establish businesses that can employ a minimum of 6 talented technology individuals in Canada’s Capital Region over the next three years
• Attend 100% of 6 training days
• Deliver presentations on Day 4 afternoon and evening as well as Day 6 morning
• Contribute to Phase III: Accelerate sales to first customers
Lead to WinSlide 5 August 25, 2009
Groupings: 34 individuals in 24 opportunities
I. Mobile applications
II. Content and media III. Health safety services and technology
IV. Software V. Consulting and applied technology
Location Case Room 1 Case Room 2 Suite 350 Case Room 3 Case Room 4
8:30 a.m. Nestor AmayaKenn Hussey(Ultra inexpensive wireless thing)
Donald Smeth(Media DigitalSignage)
Don Ellis, Alan Graves(Elder care application service provider)
Sharon Lewinson, Tom Lewison (Rideshark)
Bilal Ahmad(Margalla Works)
9:00 a.m. Ben Cliffe, Anoop Nannra(Mobile apps suite)
Daniel Crenna (Lunarbits)
Prakash Naidu,Kshirsagar Naidu(Multipoint stimulation)
Yi Li(Enterprise rights management)
Mihaela AndronicJerry Carver(Business environment mapping and shaping)
9:30 a.m. Randy Jones(Report away mobile)
Rob Johnstone, Louis Payant(Learnetica)
Reinhard Messner(ERP for ISO certification)
Joe Babiarz, Marvin Krym, Guyves Achtari (The unwired enterprise)
10:00 a.m. Jeff MacDonald (Mobile applications suite)
Chris Justus(Biz Quiz)
Art Munro(Seven Day Office)
Ian Brown(Career search engine)
10:30 a.m. Adam McNamara,Tariq Zaid (Hosting for business games and business applications)
Dinesh Shah(AuthorX)
David Nadeau (Infoglutton)
Terrence Chen(Inefficiencies in software development process)
11:00 a.m. Oscar Vargas(Warehouse tracking)
Pat Seemel(Structured group facilitation)
Lead to WinSlide 6 August 25, 2009
Lead to Win
“Operations”August 25, 2009
Chuck Colford andBrian Hurley
“The time has come,” the Walrus said, “To talk of many things”…
- Lewis Carroll
…A great many things indeed
Lead to WinSlide 7 August 25, 2009
Operations – Not such a dirty job
It can always be worse…
Lead to WinSlide 8 August 25, 2009
Scope of Operations
• Finance• Human Resources• Engineering• Manufacturing and Supply Chain• Customer Support• Product Management• Marketing• Sales• Site Management• ICT • Board of Directors• Investors• Advisors
Lead to WinSlide 9 August 25, 2009
Scope of Operations
• You will not be an expert in all domains – and don’t need to be
• You do need to know how to build a team and get results from the team
• You do need to know about where the bear-traps are – learn from the mistakes and pain of others
Lead to WinSlide 10 August 25, 2009
Operations – Practical Advice
Pay attention!
We will tell you some things that no-one else may have ever told you…
that might save you from a world of grief!
“In theory, there is no difference between theory and practice…
In practice – there is!”
Theory Practice
Lead to WinSlide 11 August 25, 2009
Agenda
• The Team• Steering the Ship• Selling Related Finger Food• Money Related Fun• Burnt Flesh Potpourri
Lead to WinSlide 12 August 25, 2009
Self-Awareness is Important toOperational Success
• Know yourself
• Cover your weaknesses
• Hire people who are better than you to strengthen the team
• Learn from your mistakes… or better yet, from the mistakes of others
Lead to WinSlide 13 August 25, 2009
Hiring Great People
• Structured interview approach against a written role description to probe if they are suitable candidates
• During initial call:– Be explicit about what the expectations are in your start-up
relative to a big company – better to scare them away then hire the wrong person
– Share company’s objectives and vision – they must want to be part of the quest
– Share your company culture – it must resonate
• Invest time and resources on candidate selection in stages, e.g.
– Call with designated internal recruiter– Meeting with hiring manager– Meetings with other team members– Reference checks– Offer/negotiation
Lead to WinSlide 14 August 25, 2009
Hiring Lots of Great People Quickly
• Get a professional to lead the effort
• Centralize the effort and establish a pipeline process
• Prepare a hiring collateral package
• Only bring in working staff for good candidates
• Get creative on attracting attention and buzz
• Great people know great people
• Keep the bar high
• Get a professional to lead the effort
• Centralize the effort and establish a pipeline process
• Prepare a hiring collateral package
• Only bring in working staff for good candidates
• Get creative on attracting attention and buzz
• Great people know great people
• Keep the bar highhttp://www.ottawabusinessjournal.com/288580326461284.php
Lead to WinSlide 15 August 25, 2009
Terminating People Who Don’t Fit
• Formal employment agreements make things easier
– “Without cause” terms should be defined in contract
• Engage HR professional – easier to do it right than to deal with consequences of a poorly executed termination
• Treat employee with respect• Never hire anyone you are not willing to fire
– Avoid hiring founder’s relatives or spouses– Avoid hiring friends– Avoid hiring investor friends or relatives– etc
• If you ever enjoy firing people you should consult a doctor
Lead to WinSlide 16 August 25, 2009
Rock Stars (“Big Names”) Can Help or Hinder
• Big Names can help – Experience– Open Doors– Reduce interval to sales– Help recruit
• Typical Roles– Advisor– Management– Board Member
• How– Personal relationships and
introductions– Don’t be shy
• Why– Exciting Vision– Upside– People– Personal visibility– Access to people or
companies– Retired and bored
• Big Names can Hinder– Big ego– May not actually work
very hard– May not deliver on
commitments– May not hang around
long– May work to replace the
founders– May try to redirect the
company into a company they want to do (or have done in the past)
– ….
Lead to WinSlide 17 August 25, 2009
Hiring is NOT your only option
• Escape your “employee mindset” experience– Many of you will bootstrap and grow by contracting– So why then is the natural instinct to fill up with employees?
• Advantages to using contractors– “Try before you buy” – Easy to escape bad recruiting
decisions– Limited obligation – reduces your liability– Supports variability of your business– Good sub-contractors can become great advocates
• Disadvantages– Less “loyalty” (often overstated – HBR “They’re not your
people”)– More turnover & recruiting efforts to replenish– Grant incentives may not apply (SRED, et.al)– Harder to establish “brand”
Best of both worlds is possible –
Contract first and hire if good fit
Lead to WinSlide 18 August 25, 2009
Outsourcing by Function
• Very common to outsource things that are not:– Your core competency– Where you build value
• Common functions– IT, Website development & maintenance– Office Manager, Clerical, Payroll– Bookkeeping, Accounting– Legal Counsel, IP (Patent Agent) work– HR– Specific Subject Matter Experts (SMEs) as required
• SRED or IRAP write-ups
• Sales, Marketing
Getting the right expertise when required may be critical to success
Lead to WinSlide 19 August 25, 2009
Outsourcing – Thinking Outside the Box
• Pay an open source or shareware developer to install, personalize or add a key feature to their application so it better serves your business
• Rather than cash: Can services be bartered, paid in stock or warrants?
• Variable rates: Pay one rate pre-revenue; then top up to premium rate post revenue?
Consider all possibilities! Do what makes sense.
Lead to WinSlide 20 August 25, 2009
Subcontractor Agreements
• When dealing with subcontractors, where you direct the work, you should always put in place a standard sub-contractor agreement.
• Why?– Rate, payment schedule, GST in/out, termination notice
periods are clearly established– It legally identifies them or their corporate identity including
business/GST number– Defines who owns IP– Liability: what if they damage clients facilities, breach
security?– NDA, confidentiality requirements. Any security clearances
or checks required– Reporting requirements; Scope of work defined.– Supports you when audited “So – what is this cheque you
wrote for?”
These are NOT rocket science –
your legal counsel will have one.
Use it!
Lead to WinSlide 21 August 25, 2009
Volunteers
• Part of almost every early stage start-up• Launching can take up to a year or more• Volunteers have a typical “shelf-life” of 4 – 6 months
– Volunteer commitment can range from a few hours a week, e.g. typically 8 hours for someone already employed and up to 40+ for unemployed volunteer
• Commit in “chunks”• Formalize ownership as appropriate, e.g. restricted stock, stock
options• Protect your IP (if appropriate), e.g. assignments, NDA’s and
“consideration”• Understand and appreciate volunteer motivations, e.g. learning
something new, like the people, “plan B”, etc– Be aware of impact of decisions/progress to help anticipate need
to back-fill/re-commit, • Expect volunteers to “come and go”
Lead to WinSlide 22 August 25, 2009
Advisors Can Fill Gaps Inexpensively
• Engage experts to be advisors:– In areas of weakness (e.g. sales)– Where it is too early to hire a full time person– Where they can provide a customer perspective– Where they are a potential partner or channel
to customers– To provide credibility
• Limited time commitment – a few hours a week or a month
• Advisor compensation:– Free – usually as long as the work is
interesting, pleasant and not excessive– Stock– Retainer/honorarium/contract (i.e. cash)
Lead to WinSlide 23 August 25, 2009
Mentors Can Help
• Mentoring is a process for the informal transmission of knowledge, social capital, and the psychosocial support perceived by the recipient as relevant to work, career, or professional development; mentoring entails informal communication, usually face-to-face and during a sustained period of time, between a person who is perceived to have greater relevant knowledge, wisdom, or experience (the mentor) and a person who is perceived to have less (the protege)” [Bozeman, Feeney, 2007]
http://en.wikipedia.org/wiki/Mentoring
Lead to WinSlide 24 August 25, 2009
Agenda
• The Team• Steering the Ship• Selling Related Finger Food• Money Related Fun• Burnt Flesh Potpourri
Lead to WinSlide 25 August 25, 2009
Managing Teams – Vision, Culture
• Vision– Points the way, generates
excitement and common purpose
• Culture – Sets the context for
independent and group actions in situations not formally specified, establishes norms
“There go my people. I must follow them, for I am their leader”
– Mahatma Ganhdi
Lead to WinSlide 26 August 25, 2009
Managing Teams – Take Charge
• Only one leader – Not a democracy
– All the founders can not be the CEO
• Set Roles and Responsibilities– Reporting structure – formal organization chart
– Decision Making Authority
– For work and people management – not rigid communications silos
– Orients new staff
• Setting Objectives– Company, Individual
– Must do, WBN
• Staff performance management– Dealing with low performance
– Dealing with disruptive individuals
– Regular reviews and feedback
• Staff development– Informal, formal
– Selective apprenticeship
“When in command… take charge”
Lead to WinSlide 27 August 25, 2009
Managing Teams – Day to Day
• Regular staff meetings – efficient, regular (even if you are not there)• Action registers – with follow-up and load balancing• Make compromises explicit and formally managed• Common (enforced) secure file repository (more on this later)• Common (simple) reporting
– Limit formal reporting to what is required to get the job done and consistent with phase
• All-hands meetings – inform, motivate, celebrate, socialize• Transparency – be open in sharing information and responding to
questions • Accessibility
– Open door policy– Management by walking around – engage, ask to hear the problems and over-
communicate the vision/plans/successes– Skip-level lunch meetings – inform, engage, socialize
• Carry the water when required• Lead by example – your actions define the acceptable “norm”• Formal policies as (and when) required, e.g. use of open source,
working from home, vacation management, travel, expenses
Lead to WinSlide 28 August 25, 2009
Bringing the Team to Bear
• Listen more than you talk– Use active listening techniques where you
summarize for understanding and confirmation
• Seek out and engage all team members– Control group discussions in a positive manner
to draw out the quiet members
• Use delegation effectively and frequently• Learn and use common methods to allow
a team to:– Make decisions
– Solve problems
– Develop new ideas
– Learn from the past and look to the future
– Engage in continuous improvement
– Manage conflict constructively
Lead to WinSlide 29 August 25, 2009
Delegation
• Clearly define the task– What– When– Scope of authority– Resources available– Reporting requirements
• Select the best person for the job• Train your staff for the tasks• Motivate people by trusting them• Get and give feedback
– How do they feel about their progress?
• Let the assigned people to do the work!– Avoid jumping in or interfering
Bring everyone to bear on building the business
Lead to WinSlide 30 August 25, 2009
Problem Solving Techniques
• Appreciation - Extracting maximum information from facts• 5 Whys - Getting quickly to the root of a problem.• Cause & Effect Diagrams - Identifying likely causes of problems• Affinity Diagrams - Organizing ideas into common themes• Appreciative Inquiry - Solving problems by looking at what's going right• Flow Charts - Understanding process flows• Risk Analysis and Risk Management• SWOT - Analyzing your strengths, weaknesses, opportunities and threats• PEST Analysis - Understanding "big picture" forces of change• The Marketing Mix and the 4 Ps - Understanding how to position your
market offering• The Ansoff Matrix - Understanding the different risks of different options• The Boston Matrix - Focusing effort to give the greatest returns• Porter's Five Forces - Understanding the balance of power in a situation• Core Competence Analysis - Get ahead. Stay ahead.• USP Analysis - Finding your competitive edge• Critical Success Factors - Identifying the things that really matter for
success• The Greiner Curve - Surviving the crises that come with growth• The McKinsey 7S Framework - Ensuring all parts of your organization
work in harmony
www.mindtools.com
Lead to WinSlide 31 August 25, 2009
Leveraging Creativity
• Reversal - Improving products and services
• SCAMPER - Generating new products and services
• Attribute Listing, Morphological and Matrix Analysis - Creating new products, services and strategies
• Brainstorming - Generating many radical ideas
• Reverse Brainstorming - A different approach to brainstorming
• Reframing Matrix - Looking with different perspectives
• Concept Fan - Widening the search for solutions
• Random Input - Making creative leaps
• Provocation - Carrying out thought experiments
• DO IT - A simple process for creativity
• Simplex - A powerful problem solving process
• TRIZ - A powerful methodology for creative problem solving
www.mindtools.com
Lead to WinSlide 32 August 25, 2009
Decision Making Techniques
• Pareto Analysis - Choosing what to change
• Paired Comparison Analysis - Working out the relative importance of different options
• Grid Analysis - Making a choice taking into account many factors
• PMI - Weighing the pros and cons of a decision
• Force Field Analysis - Analyzing the pressures for and against change
• Six Thinking Hats - Looking at a decision from different perspectives
• Starbursting - Understanding options better by brainstorming questions
• Stepladder Technique - Making better group decisions
• Cost/Benefit Analysis - Seeing whether a decision makes financial sense
• Cash Flow Forecasting with Spreadsheets - Analyzing whether an idea is financially viable
• Decision Trees - Choosing by valuing different optionswww.mindtools.com
Lead to WinSlide 33 August 25, 2009
Decision Making – Who, What, When
Key concepts:• Who owns the responsibility?
– Designated– Delegated
• What stakeholders are affected?• Quality - Are all the facts and alternatives known? • Time - How long until the call must be made?
A BAD decision is one that:– Is made by the wrong person - Violates delegation or authority– Does not consider the impact on the stakeholders– Is unsupportable by the majority of stakeholders– Is made in haste (before facts and alternatives are understood)– Takes too long (occurs too late to have impact, squanders
resources)Don’t confuse a bad decision with a bad outcome
Lead to WinSlide 34 August 25, 2009
Decision Making – Calling the Shots
When the person who owns the decision is known (lets assume it is you), various styles may be employed to make it:
1. You decide alone.
2. You seek information and then decide alone.
3. You consult with individuals and then decide alone.
4. You consult with the group and then decide alone.
5. You share the problem with the group and you all mutually decide what to do.
• None of the above are wrong.
• The person who owns the decision chooses.
• When choosing to consult for information or advise, be careful not to send the wrong signals – if you plan to make the call yourself.
Leadership is always situational!
Lead to WinSlide 35 August 25, 2009
Decision Making – Balancing buy-in with Action
• Since the Magna Carta – the King has not had absolute power:– The CEO serves at the pleasure of the Board– The customer can take their business elsewhere– “They’re not your people” – They can leave with 2 weeks notice– So… Buy in is important
• You must balance need for “buy-in” with need to move forward• You will fail if you try to please all the people all the time
– Leadership is not about popularity– All your decisions will not be loved (It sucks to be you - get
over it!)• You will exhaust yourself and your team if everyone needs to be
involved in everything– Use decision style #5 sparingly – for serious or “bet the
company” issues– Beware compromise – It produces horrible results!
Compromise is often a position that no-one supports.– Instead, strive for consensus – A decision that everyone can
agree to support (rather than undermine)
Very few decisions are fatal –
Get on with it!
Lead to WinSlide 36 August 25, 2009
Decision Making Tips – “House Rules”
1. Wait until the last minute - but not a minute later. "If you're not going to do anything differently tomorrow by making a decision today, then don't make it today. Situations change; markets shift. That's not an excuse to procrastinate. But the best decisions are just-in-time decisions. You should decide as late as possible - but before you need to take action."
2. Don't be afraid to argue."Conflict is good for an organization - as long as it's resolved quickly. Unresolved conflict is a killer. That's why real leaders deal with conflict head-on. They take individual feelings seriously, but then they get beyond those feelings. One way to make progress on a tough decision is to agree on what the question is. Agree on the wording and write it down. Debate often stems from having different ideas about what's being decided."
3. Make the right decision, not the best decision."People can spend months debating the 'best' decision without actually arriving at any decision. Every decision involves risk. And if there are 10 ways to do something, 8 of them will probably work. So pick 1 of the 8 and get going. Life's too short. You have 10 more decisions to make after this 1."
4. Disagree - and then commit."Not everyone gets a chance to decide, but everyone should have a chance to be heard. Without at doubt, the most vigorous debates yield the best thinking. But once a decision is made, you should not be able to tell who was for it and who was against it. Fully supporting decisions that have been properly made is a condition of employment."
- Dave House – Bay Networks
Lead to WinSlide 37 August 25, 2009
Conflict Management
• Conflict is natural - happens in every organization
• Conflict is good – brings out different points of view
• Unresolved conflict is a killer – stops progress, destroys teams
Lead to WinSlide 38 August 25, 2009
Conflict Management – Straight Talk
• Address the issues directly with the person with whom you have the conflict– You may have misunderstood– They may have misunderstood– They may not have all the
information you have– You may not have all the
information they have
• If possible do it privately and 1 on 1
Lead to WinSlide 39 August 25, 2009
Conflict Management – Straight Talk
If you are in disagreement:
• State up front that you disagree – explain why
• Ask the other person to state why they came to their decision
• Do not attack• Actively listen – ask questions
and get clarification – be open to change
If someone disagrees with you:
• Listen to their position• Do not be defensive – consider
alternative options• Actively listen and feed back what
you think you heard• State your position• Ask questions – be receptive to
change
Lead to WinSlide 40 August 25, 2009
Conflict Management – Straight Talk
Recognize the conflict
Address directly
State your case
Listen
Escalate
Discuss
Gather more data or meet with consultant
Implement
AgreementNeed
information/consultant
YES
YES
NO
NO
Lead to WinSlide 41 August 25, 2009
Time Management
• Time management is extraordinarily important!
• Self-discipline • Key elements of effective
time management:– Goal Setting– Activity Planning– Prioritization– Prioritized To Do Lists– Scheduling– Managing Interruptions
http://blog.iqmatrix.com
Lead to WinSlide 42 August 25, 2009
Avoid Busywork from Investors
• Investors will tend to use their portfolio companies– To extend their own personal research and support groups– Which defocuses you and sucks time and energy – Common practice is to call up a portfolio company to do
research on other deal flow items• “What do you think about…”• “I need a white paper on…”• “How would your offer stack up against…”
• Even if you delegate, you will be dragged into discussions later
• It is a slippery slope– Carefully balance collaboration goals with need to keep your
business focused on winning customers. – Once you have done a few, the precedence is established and
it is more work to wean them off– Be mindful what is occurring.
Lead to WinSlide 43 August 25, 2009
Meeting Tips
• Very few meetings make you any money – minimize these– Always ask yourself “Why do we need to have this meeting?”– Know before it starts – Know what you will have when it is done.
• Not everyone needs to be in every meeting– When you have a small team, it is important to manage time well since it is so scarce.– If a key player is missing consider rescheduling; rather than having the same meeting
twice.– Bring who you need to meeting but not more then you need
• “Start on-time/finish on-time” is a cultural thing– You will set the example and lead culture – You get what you demonstrate and tolerate.– No golden rule, but avoid mixed messages.
• Informal (break and meal) times are often highly productive– Frequently seen to be more valuable than the formal portion – Don’t skip these– Especially when bringing multi-site people together– For off-site meetings to pay; you need to keep people together off-hours to extract the
value• Get in the habit of documenting
– Purpose, Participants, Agreements and Actions– Blog, Wiki probably better than email– You can then see if you are getting value, – And if you are following through
Lead to WinSlide 44 August 25, 2009
Meetings - A Team Model (Projects)
• Core Team:• this is the project team accountable for the
deliverables• the team sets it’s objectives and plans • members are on the team for the project duration
and commit to be at all team sessions• should identify a set of Subject Mater Experts , or
Interested Presenters for info/skills required
• Subject Matter Experts, Invited Presenters:• are prepared to provide info or give team detailed
technical guidance• are not required to be at team meetings unless
needed by core team• are able to use their time in team interaction more
effectively
• Listeners:• people with applicable interest in the outcome of
the team• may be on distribution for all team minutes• can send info to team or give feedback
• Core Team:• this is the project team accountable for the
deliverables• the team sets it’s objectives and plans • members are on the team for the project duration
and commit to be at all team sessions• should identify a set of Subject Mater Experts , or
Interested Presenters for info/skills required
• Subject Matter Experts, Invited Presenters:• are prepared to provide info or give team detailed
technical guidance• are not required to be at team meetings unless
needed by core team• are able to use their time in team interaction more
effectively
• Listeners:• people with applicable interest in the outcome of
the team• may be on distribution for all team minutes• can send info to team or give feedback
Listeners
Subject MatterExperts
InvitedPresenters
CoreTeam
TheCurious
Lead to WinSlide 45 August 25, 2009
Operations – Risk Management
This is simply a tool to gauge risk
Bias your energy to Mitigate –
Not DebateL M H
IMPACT
L
M
H
2 2
1 1
PR
OB
AB
ILIT
Y2 1
• Prioritize which ones to attend to first; which next (if capacity remains).• Considers the two dimensions of risk • Goal is to quickly identify KEY risks for attention / action• Allowed to be subjective - minimize discussion, debate - Save time for action.
Lead to WinSlide 46 August 25, 2009
Decision Aid – Consider Boundaries
Consider boundary conditions –
In practice, outcomes are often nearer the extremes than the centre.
Beware opposing corners.
Best thing that can happen is…
Worst thing that can happen is…
Party A Party B
Best thing that can happen is…
Worst thing that can happen is…
Lead to WinSlide 47 August 25, 2009
Agenda
• The Team• Steering the Ship• Selling Related Finger Food• Money Related Fun• Burnt Flesh Potpourri
Lead to WinSlide 48 August 25, 2009
Don’t Let People See the Dog
• PowerPoint template – fonts, colors, format
• Email signature
• Logo variants allowed – on dark or light background, with tagline and without
• Letterhead template
• Business cards template and common vendor to produce
• Brochure template
• Establish basic common collateral set: company/product awards, corporate overview, product overview, etc
• Domain name and standard email naming convention, e.g. [email protected]
– Don’t use personal email addresses for business purposes!
• Professional website – even if only one slick-looking page
• Use a professional to polish important presentation slide sets, e.g. www.bittnerdesigns.com
Lead to WinSlide 49 August 25, 2009
Sales Management Basics
• Define:– Sales plan – target customers and characteristics– Sales process – steps from qualification to close– Sales pipeline – estimate volume at each sales step, ratios don’t
lie– Sales targets – quarterly, core element of business plan– CRM tool – Salesforce, SugarCRM, etc
• Staff to ratios as necessary to meet your sales targets• Hire appropriate to your stage and your sales model
– Not all “sales” roles are the same (e.g. hardware/software) and include roles such as: Business Development, Channel/Partner Development, Sales, Inside Sales, Marketing, Technical Sales Engineer, Product Manager
• Establish compensation plan based on need/phase – First sale? Volume? Margin? New Market Penetration?
• Weekly sales team reviews– Review from CRM tool – make it the bible– Look at what isn’t working – adjust, adjust, adjust– Replace sales staff that are not a good fit or are not delivering
Lead to WinSlide 50 August 25, 2009
Lead to Win Example 2009 Pipeline
Pipeline Stages
Conversion % From One Stage to the Next
Numbers for LTW To Generate 1 New Business
Lead to WinSlide 51 August 25, 2009
Tip: Not all Customers make good Leads
Customer Leads not same as Lead Customers
• Must differentiate amongst the three to use finite resources/time wisely.
• Early wins are about relationships –Must manage to a small number of simultaneous trials - staggered windows; make each one “feel” special.
• Managing expectations is just as important as managing deliverables.
• Validate before you scale up.
• In ramp – methods change – Can’t make each customer feel special.
Customer Leads not same as Lead Customers
• Must differentiate amongst the three to use finite resources/time wisely.
• Early wins are about relationships –Must manage to a small number of simultaneous trials - staggered windows; make each one “feel” special.
• Managing expectations is just as important as managing deliverables.
• Validate before you scale up.
• In ramp – methods change – Can’t make each customer feel special.
3 types of pre-sales “customer encounters”
1. Baiting the Hook – Generate awareness, interest, pull– Demo, Trade Show, Press, Partner or channel
recommendation
2. Product validation– Get your product right– Alpha Trial, Beta Trial, pre-GA soak
3. Customer acceptance– Generate revenue – Lab Trial (CAT), Bake Off
You may blow your brains out if you try to do validation with #3
(Early adopters are a different breed)
Lead to WinSlide 52 August 25, 2009
Calling on Customers - Tips
• Respect the customary dress codes– Business attire as appropriate to the locale
• Manhattan, TO Financial District – Suit & Tie (gents)• Pressed shirt, Belt• Silicon Valley – No tie; Golf shirt; jacket probably
– When was the last time those shoes were polished?– Personal grooming is important – Haircut, Shave…
• Take an extra shirt– Coffee spills happen at the worst times!
• Be on time– Traffic sucks in big cities (even if you know they way)– I usually skip hotel breakfast; get to the client’s building early
and eat nearby– If so, take toothbrush and/or mouthwash to freshen up before
meeting
• An umbrella can be a life saver
Treat EA’s with great respect – They can literally open or close doors
Lead to WinSlide 53 August 25, 2009
Contain Feature Creep
Resist the urge to add in “features” before the core product works.
-Graphic
-– Peter Evans (Riverdale Partners)
Lead to WinSlide 54 August 25, 2009
Agenda
• The Team• Steering the Ship• Selling Related Finger Food• Money Related Fun• Burnt Flesh Potpourri
Lead to WinSlide 55 August 25, 2009
Money Related Fun Stuff
• Managing Cash• Managing Cost• Managing Equity
Lead to WinSlide 56 August 25, 2009
Budgeting and Cash Management
How Any Firm Fails: Run out of MoneyAirplanes crash when they run out of altitude prematurely.
Cash is your altitude!
Dollars (& credit) on hand + Money IN- Money OUT ---------------------must be > $ 0 to survive
NO MATTER HOW GOOD THE IDEA!
Starting altitude + rate of climb x time- rate of descent x time ---------------------must be > 0 to survive (unless you are over a runway.)
EVEN IF THE PLANE IS PERFECT!
• Someone in the firm MUST be responsible for managing cash flow– Monthly projection of what is coming in / going out
– Accounting package or spreadsheet is fine
– Closer management when the cash is getting low
– Keep track of all liabilities
– Always remit your payroll taxes!
Lead to WinSlide 57 August 25, 2009
Watch Cash Outflow & the Bottom Line
OUTFLOW DEC JAN FEB MAR APR
Payroll Expenses 162,000$ 162,000$ 170,000$ 170,000$ 185,000$
Payroll: Sales Bonus -$ 1,125$ 7,750$ 12,400$ 18,083$
Payroll: Other Bonus
Payroll (Nov 30 due) 162,000$
All other Expenses 67,000$ 72,000$ 72,000$ 72,000$ 75,000$
Expenses (overdue) 20,000$ 20,000$ 10,000$ 10,000$
Supplier-A $40,000
Non-payroll Taxes (due) $35,053
Debt: Interest Payments $90,500
Debt: Principal Payments $50,000
($434,803) ($177,625) ($135,750) ($254,067)Net Cash Flow
• Early detection creates more opportunity to work the issues.
Are you tracking to plan?
Getting better or worse?
Lead to WinSlide 58 August 25, 2009
Group Benefit Plans
• Your company can buy coverage similar to big firms– Dental, Vision care, Prescription and Hospital
• Typically need 6 members or more– Varies by supplier
• Small groups will likely need medical evidence for each participant– Histories– Medical tests
• Suppliers: Insurance brokers or Canada’s large Insurance companies
• Beware: US coverage can be VERY expensive• Initial US coverage options:
– Use COBRA and pay their benefits cost– Pay a monthly supplemental benefit for them to use for a private plan
(which goes away when company plan is in place written in as part of employment contract)
• Possible to put in place self coverage– But make sure it is capped (unlimited exposure would be bad!)– Understand administration effort required
Lead to WinSlide 59 August 25, 2009
Travel Cost Tips (Small team)
• Even as a small team, you can manage your travel costs well– Plan ahead; arrange multiple visits on each trip– Visit your local travel agents – find one who wants your
business and book through them; Saves you time– Leverage your client’s corporate rates/travel agent– Negotiate with hotels; Ask for the day manager; Visit while on
other trips. Even on a few trips this can make a difference– www.priceline.com plus BetterBidding.com (see
www.mahalo.com/how-to-successfully-bid-on-travel) – Flights: www.flightnetwork.com (Canada) www.webflyer.com– Hotel FFPs – Save on food, internet, phone– IP Phone or Skype work well in many locations– Beware cell-phone plan roaming charges; hotel LD charges
• You can go too far!– Safety is important– Location is important– Cleanliness is important
Always a balance of time vs. money –
Don’t waste $100/hr time for something that can be done for $10/hr
Lead to WinSlide 60 August 25, 2009
Travel Cost Tips (Large team)
• Travel approval process – control, control, control – what, who, why – do you really need 2 people at the same conference?
• Travel and expense policy – limits, expectations on what is considered allowable/reimbursable, rentals, hotel rates, meals, sundry, entertainment, economy/biz class, etc
• Designate one person who is authorized to book and manage all authorized travel arrangements – consistency, speed, expertise, accountability -- $10/hour versus $100/hour labor
• Traveling to same location repeatedly (or having staff come to main office repeatedly) – negotiate a special rate at a hotel and mandate its use, rent an apartment
• Use corporate credit cards – tracking, simplify expensing, make it easier for employees
Control
Process
Mandate
Lead to WinSlide 61 August 25, 2009
Avoid Costs (time, goods, legal) Due to Theft
• Locked filing cabinets
• Locked management offices
• Locked, controlled access to labs
• Controlled access to labs
• IT staff access to files/systems
• IT security (control of root/admin passwords), password logs
• Document shredding, e.g. ShredIt
• Employee badges and electronic access
• Sign-in of guests
• High value asset control and security, e.g. processor chip vault, laptops
• Desktop security, e.g. locks, passwords
• Laptop policy, e.g. lockup in desk afterhours, locked to desk during day
• IT security, e.g. WiFi WPA security, SSL VPN, Firewall
• After-hour access
• Backup of all desktop, laptop, server data, e.g. incremental and off-site storage/rotation of backups
Lead to WinSlide 62 August 25, 2009
Costs – Tips for other than travel
• Space– Sublet from someone who has downsized– Share with others– Beware the long term lease commitment! Fixed costs
can be deadly
• Capital Equipment– Borrow from someone who has it– Buy used (eBay, Kajiji, Craigs list, your peer network …)– Auctions (Going out of business sales)– Bank lease to cover
• Your banker can help with these (secured credit easier to get, but likely will not finance the full value of the asset)
Lead to WinSlide 63 August 25, 2009
Maintaining Shareholder Records
• Your corporate lawyer may be a good place to keep your minute book
• They may also have facilities to securely store founders stock certificates so they never get lost – ask.– It can be a major issue if those stock certificates get lost
– They may be needed for surrender to close certain exit deals
• They or you will need to maintain a Shareholder’s Register:– Simple 5 column spreadsheet
– Who owns what
Date of Issue
Name Address Shares
Class
April 1, 2009 John Smith 1 Endless Loop, Cupertino, CA, USA
1000 Class A Common
Lead to WinSlide 64 August 25, 2009
Cap Table – Example (pre Series-A)
Shareholders
Common Options & Preferred Options &Shares Warrants % $ A Shares $ Warrants Shares %
Founder 1 1,000,000 25.0%Founder 2 1,000,000 25.0%Founder 3 500,000 12.5%Founder 4 500,000 12.5%ESOP 500,000 12.5%Angel 500,000 12.5% 100,000Series A VCTOTAL 3,500,000 500,000 100.0% 100,000
After Series A RoundFully Diluted
Seed Round Series A Round
$100,000500,000
= $0.20/share
Post-money Valuation
Pre-money Valuation
Contributed Capital4,000,000 x $0.20 = $800,000
($100,000)
$700,000
Private investor negotiates to buy
12.5% of company for $100,000
Lead to WinSlide 65 August 25, 2009
$4M pre + $4M new = $8M post
Post-money Valuation
Pre-money Valuation
Contributed Capital10,000,000 x $0.80 = $8,000,000
($4,000,000)
$4,000,000
An Up Round $8,000,000 10,000,000
= $0.80/share
Cap Table – Example (post Series-A)
Shareholders
Common Options & Preferred Options &Shares Warrants % $ A Shares $ Warrants Shares %
Founder 1 1,000,000 25.0% 1,000,000 8.9%Founder 2 1,000,000 25.0% 1,000,000 8.9%Founder 3 500,000 12.5% 500,000 4.5%Founder 4 500,000 12.5% 500,000 4.5%ESOP 500,000 12.5% 1,175,000 1,675,000 15.0%Angel 500,000 12.5% 100,000 500,000 4.5%Series A VC 6,000,000 4,000,000 6,000,000 53.7%TOTAL 3,500,000 500,000 100.0% 100,000 6,000,000 4,000,000 1,175,000 11,175,000 100.0%
After Series A RoundFully Diluted
Seed Round Series A Round
VC negotiates to invest $4M, and “gives” you a pre-money value of $4M
- But you must top up option pool to 15% first
Lead to WinSlide 66 August 25, 2009
$4M pre + $4M new = $8M post
Post-money Valuation
Pre-money Valuation
Contributed Capital10,000,000 x $0.80 = $8,000,000
($4,000,000)
$4,000,000
An Up Round $8,000,000 10,000,000
= $0.80/share
Cap Table – Example (post Series-A)
Shareholders
Common Options & Preferred Options &Shares Warrants % $ A Shares $ Warrants Shares %
Founder 1 1,000,000 25.0% 1,000,000 8.9%Founder 2 1,000,000 25.0% 1,000,000 8.9%Founder 3 500,000 12.5% 500,000 4.5%Founder 4 500,000 12.5% 500,000 4.5%ESOP 500,000 12.5% 1,175,000 1,675,000 15.0%Angel 500,000 12.5% 100,000 500,000 4.5%Series A VC 6,000,000 4,000,000 6,000,000 53.7%TOTAL 3,500,000 500,000 100.0% 100,000 6,000,000 4,000,000 1,175,000 11,175,000 100.0%
After Series A RoundFully Diluted
Seed Round Series A Round
VC negotiates to invest $4M, and “gives” you a pre-money value of $4M
- But you must top up option pool to 15% first
Lead to WinSlide 67 August 25, 2009
$4M pre + $4M new = $8M post
Post-money Valuation
Pre-money Valuation
Contributed Capital10,000,000 x $0.80 = $8,000,000
($4,000,000)
$4,000,000
An Up Round $8,000,000 10,000,000
= $0.80/share
Cap Table – Example (post Series-A)
Shareholders
Common Options & Preferred Options &Shares Warrants % $ A Shares $ Warrants Shares %
Founder 1 1,000,000 25.0% 1,000,000 8.9%Founder 2 1,000,000 25.0% 1,000,000 8.9%Founder 3 500,000 12.5% 500,000 4.5%Founder 4 500,000 12.5% 500,000 4.5%ESOP 500,000 12.5% 1,175,000 1,675,000 15.0%Angel 500,000 12.5% 100,000 500,000 4.5%Series A VC 6,000,000 4,000,000 6,000,000 53.7%TOTAL 3,500,000 500,000 100.0% 100,000 6,000,000 4,000,000 1,175,000 11,175,000 100.0%
After Series A RoundFully Diluted
Seed Round Series A Round
$4,000,000 6,000,000
= $0.67/share
Post-money Valuation
Pre-money Valuation
Contributed Capital11,175,000 x $0.67 = $7,450,000
($4,000,000)
$3,450,000
An Up Round
Must factor in the added ESOP Dilution!VC negotiates to invest $4M, and “gives” you a pre-money value of $4M
- But you must top up option pool to 15% first
Lead to WinSlide 68 August 25, 2009
Cap Table – Impact of Dilution & Valuation
Shareholders
Shares Value Shares Value& Equiv % $ & Equiv % $
Founders 3,000,000 75.0% 600,000 3,000,000 26.8% 2,000,000ESOP 500,000 12.5% 100,000 1,675,000 15.0% 1,116,667Angel 500,000 12.5% 100,000 500,000 4.5% 333,333Series A VC 0 6,000,000 53.7% 4,000,000TOTAL 4,000,000 100.0% 800,000 11,175,000 100.0% 7,450,000
After Seed Round After Series A Round
• In this example:– Founders holdings more than doubled (grew by $1.4M)
– Your Angel did not get crammed down (it was an up-round), but they did not participate pro-rata on the follow on
– The VCs used the Option Pool trick to give you a seemingly higher pre money value
– You lost control – you are now an employee, and the VC’s have enough options to incent/recruit your replacement
Lead to WinSlide 69 August 25, 2009
Ways to Use Stock Options
• Attracting Talent– Sharing in success / upside– Negotiation flexibility
• Retaining Talent– Key employees
• Incentives to Drive Results– Give bonus options on completion of a
milestone– Can be partially vested upon award
• Cash Conservation– Give more options, less cash
Lead to WinSlide 70 August 25, 2009
Agenda
• The Team• Steering the Ship• Selling Related Finger Food• Money Related Fun• Burnt Flesh Potpourri
Lead to WinSlide 71 August 25, 2009
Potpourri - Definition
1. A combination of incongruous things
2. A miscellaneous anthology or collection
3. A mixture of dried flower petals and spices used to scent the air
Lead to WinSlide 72 August 25, 2009
Know Your Personal Risk Tolerance
• As an entrepreneur – know your risk tolerance
• Look at the worst possible outcome scenario for you personally – financial loss, lost reputation, lost opportunity, etc
• Can you live with the worst possible outcome?
• If not – stop now
Lead to WinSlide 73 August 25, 2009
Venture Backed - Survey Says!
• Entrepreneurs who succeeded in a prior venture (i.e., started a company that went public) have a 30% chance of succeeding in their next venture;
and first-time entrepreneurs have only an 18% chance of succeeding, and entrepreneurs who previously failed have a 20% chance of succeeding [Gompers, Kovner, Lerner and Scharfstein, 2006]
• Only 14% of venture-backed start-ups will make it to initial public offering (IPO), 33% will be
acquired, and the rest - over 50% - will fail [Global Insight, 2007].
• More than 50% of the time venture capitalists
replaced the Chief Executive Officer (CEO) in a venture-backed company before exiting [White, D’Souza and McIlwraith, 2007]
Lead to WinSlide 74 August 25, 2009
Small Business - Survey Says!
• 2004 Statistics Canada study on small business failure rates found that the first few years were critical. While almost three quarters of small business startups survive
the first year, less than one third of micro companies (less than five employees) were in business after five years.
• 1997 study by Statistics Canada “Failing Concerns: Business Bankruptcies in Canada” found major internal factors of small business failure was management deficiency, financial management problems and poor marketing. http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=61-525-
X
http://www.ic.gc.ca/eic/site/sbrp-rppe.nsf/eng/rd01001.html
Lead to WinSlide 75 August 25, 2009
You Need Support
• Launching a new business is – hard work, long hours, stressful, can take you away from home for long periods of time, reduces your earnings at the front-end, can deplete your savings, …
• Ensure you have the support of your spouse and family
Lead to WinSlide 76 August 25, 2009
Multi-site operations for young companies
• Access to mail– Gmail; imap; hosted exchange; Webmail via your ISP
• Access to Calendar– Gmail; hosted exchange; Plaxo; Tungle
• Contacts Database– Gmail; hosted exchange; Plaxo; Linked-in
• Voice/Voicemail– SIP (BYOD); Primus; Vonage; Skype; Good cell plan
• All data must be secure– SSH, VPN access to home office; between offices– Laptops should always have encrypted storage; and cable locks (in
office and on the road)– Never trust a computer you don’t know – Assume it is compromised
• Centralized document repository– SharePoint; Hosted server; Yahoo Groups; Google Docs (ITutility.net
is a local player)– Multiple people in groups need to collaborate – so authentication
and security controls are essential
Essentials• Files• Email• Voice• Schedule
Make sure your repository is backed up
Keep all needed templates there!
Lead to WinSlide 77 August 25, 2009
Company Knowledge is Gold
• Knowledge is core to any business – product, design, customer relationship contact information, market research, HR information, marketing collateral, financial planning information, etc
• Must be centralized not distributed in an adhoc manner or held in people’s heads or held on people’s laptops or on scraps of paper…
• Uniform access to knowledge multiplies the team’s effectiveness
• Need to protect against people hoarding knowledge -- what happens if they leave or are terminated?
• Setup as appropriate CMS, file repository, CRM, ERP
• Enforce and audit usage• Ensure backed-up• Ensure secure
Lead to WinSlide 78 August 25, 2009
Live IT-free
• Avoid internal IT infrastructure (e.g. servers, internal applications)
• All basic business functionalities are available as an online service
• Cheaper then doing it yourself, e.g. hosted exchange, hosted SharePoint, hosted QuickBooks, hosted SVN, hosted CRM
• Less staff, less staff playing with IT, more functionality for less cost, backups handled automatically, available anywhere, pay as you grow, enforces a company standard
Lead to WinSlide 79 August 25, 2009
NDA Practical Perspective
• Use to protect your ability to patent IP • Have a standard set of papers• Clear process on who signs and
authorizes changes• One person responsible to
receive/confirm and file the signed agreements
• Assume everything you say or share will eventually end up with a competitor
Lead to WinSlide 80 August 25, 2009
Legal - Read the Fine Print on all Documents
The big print often draws your attention from the truly important messages
Lead to WinSlide 81 August 25, 2009
Cheques & Fraud Prevention
• Authorizing outgoing cheques– Good practice is to have 2 authorized persons sign cheques
above a specified dollar amount; Some organizations require two for all
– Sign as “Authorized Agent” or “Authorized…” – not personally
– NEVER pre-sign cheques • I shouldn’t have to tell you this, but I’ve seen it done!
• Endorsing received cheques (yes Virginia – This is why we Invoice)
– Rather than have an authorized person sign them – have the person who receives mail – STAMP them “For Deposit Only”.
– They may ONLY be deposited in the Company bank accounts.
Lead to WinSlide 82 August 25, 2009
Pay Attention to Your Signature Line
• You will sign lots and lots of documents running your business
• Only authorized officers can bind the company into contracts
• Pay attention to the signature line – Exactly on who’s behalf are you signing (“as”, “for” or “per”)– Make certain your company name is complete and correct– Ltd. Limited Inc. ,Inc. Corporation Corp. are not the same
• At law, if you sign on behalf or a company that does not legally exist, you may be personally undertaking the liability
MYCORP, INC.Per:________________John SmithPresident
________________John SmithMyCorp
THE SMITH FAMILY TRUSTPer:
Authorized Trustee
Lead to WinSlide 83 August 25, 2009
Insurance
• Directors and Officers• Errors and Omissions• General Liability• Key Person
Lead to WinSlide 84 August 25, 2009
Sh*t happens – Get over it!
If something has been done wrong – Don’t fret; Just fix it!
Don’t compound problems.
Learn from mistakes.
Lead to WinSlide 85 August 25, 2009
Learning from the Past
• Hold “Good/Bad/Ugly” working sessions after each major milestone – product, sales, financing, etc
• Typical meeting flow:– Brainstorm using sticky notes – Good, Bad, Ugly– No ass-covering – open, honest, non-rationalizing– Group sticky notes into “like”– Rank the groups in each category
• Embrace and celebrate the Good• Reflect back on the top Bad and Ugly items
– Why, how could have been avoided or mitigated, etc
• Reflect forward/brainstorm on what to do differently
• Develop forward looking actions
Those who don’t learn from history are doomed to repeat it.
Lead to WinSlide 86 August 25, 2009
Perseverance is Critical to Success
The Dark Night of
the Innovator
OP
TIM
ISM
PE
SS
IMIS
M
SCEPTICAL
WEEKSOR MONTHS
UP TO TWO YEARS
ENTHUSIASM BRASS BANDS AND FIREWORKS
THIS IS TAKING TIM
E
RESULTS AREN’T VISIBLE
EXISTING BUSIN
ESS
IS SUFFERING
IS IT
WORH IT
?
START TO SEE P
AY OFFS
MAYBE NOT A
BAD ID
EA
IT WORKS
Lead to WinSlide 87 August 25, 2009
Key Indicators to Watch During The Dark Night
• Competition – changes in the landscape
• Sales Pipeline and Progress• Financial environment (if raising
financing)
Lead to WinSlide 88 August 25, 2009
Entrepreneur’s Mindset
• Employee1. Paycheck
2. Benefits
3. Options
– Not forever– RRSP– Pension– Move to next job/
retire
Break out of the employee mindset
• Entrepreneur (Owner)1. Profits – Dividends
2. Salary
3. Benefits
– Not forever
– Sell company or wind-up
– Profits - Capital Gains
– Start next company/ retire
• Keep your eye on your end-game– Generate wealth
– Put yourself out of a job
Lead to WinSlide 89 August 25, 2009
So much advice – so little time
If you follow ALL the advice you are given, by all the people who give it…
you will be doomed to fail.
Consider the source – Is it credible and applicable?
Figure out what makes sense to YOU.
Lead to WinSlide 90 August 25, 2009
Wrap
• The walrus having drunk too long from the fire hose… took a much needed break.
Good luck – And Thank-you
Lead to WinSlide 91 August 25, 2009
Small Business - Survey Says!
United States• NFIB estimates that over the lifetime of a
business, 39% are profitable, 30% break even, and 30% lose money
• The Small Business Administration study “Financial Difficulties of Small Businesses and Reasons for Their Failure” in 1998 found several causes of small business bankruptcy: outside business conditions (38.5%), financing (28%), inside business conditions (27.1%), taxes (20%), disputes (18.8%), personal calamities and other (32.9%)
http://purl.access.gpo.gov/GPO/LPS95139
http://www.businessweek.com/smallbiz/news/coladvice/ask/sa990930.htm
Lead to WinSlide 92 August 25, 2009
Effective Executives
Acquire knowledge they need
• Ask “what needs to be done?”• Ask “what is right for the organization?”
Convert knowledge into effective action
• Focus on opportunities rather than problems • Develop action plans• Take responsibility for their decisions• Take responsibility for communicating
Make the entire organization feel responsible and accountable
• Ran productive meetings• Always use “we” and not “I”
Lead to WinSlide 93 August 25, 2009
Build and operate effective Boards
Upon completion, you will know about:• what entrepreneurs and investors want from Boards• gaps in Board memberships
And you will be able to:• select Board members• define Board responsibilities• help Board operate effectively
Lead to WinSlide 94 August 25, 2009
Entrepreneurs want Boards to:
• Help obtain key resources (e.g., capital, information, partnerships, customers)
• Provide services (e.g., legal, mentoring, expertise)
• Guide changes in business strategy and respond to opportunities and crises
• Promote the company’s reputation
Lead to WinSlide 95 August 25, 2009
Institutional investors want Boards to:
• Monitor executive behaviour, performance and compensation
• Select, control and replace the CEO
• Be independent from management
• Act in the interest of shareholders
• Guide changes in business strategy and respond to opportunities and crises
• Guard against infringements of the law
Lead to WinSlide 96 August 25, 2009
Board emphases
• What Boards emphasize depends on:– Company’s stage of development– Number of outside vs inside directors
• Early stage Boards emphasize resource acquisition and services
• Mature stage Boards emphasize executive performance, legal issues and community impact
• Outside directors emphasize reviewing executive performance, employees and community
• Inside directors emphasize shareholders concerns
Lead to WinSlide 97 August 25, 2009
Build an effective Board
• Select members who the CEO views as peers and have the time
• Each member must bring at least one competency
• Board as a whole must have knowledge of all important issues and major stakeholders
• Board members must be able to work together
• Significant proportion must be independent and not subordinate to CEO
Lead to WinSlide 98 August 25, 2009
Build an effective Board
Select members who:• CEO views as peers • have the time• bring at least one competency
Ensure Board:• has knowledge of all important issues and major
stakeholders• is able to work together as a team • has a significant proportion of independent members
Lead to WinSlide 99 August 25, 2009
Define Board responsibilities around
• Development of detailed strategies that produce large amounts of pixie dust
• Development and evaluation of strategy implementations
• Development and evaluation of CEO and senior management team
• Management of crises
• Monitoring legal and ethical performance of executives and company
Lead to WinSlide 100 August 25, 2009
Operate Board effectively
• Define Board responsibilities• Bring Board members up to a minimum level of knowledge concerning
key issues they may face• Welcome constructive feedback• Have Board decide how it will work as a team in time of crisis• Have Board members interact with customers, employees and
suppliers • Provide information that is accurate and timely in a clear way• Provide information from multiple data sources• Provide scoreboards that measure company performance in the eyes
of different stakeholders• Define a process for employees to contact Board about illegal or
unethical practices• Review development plans and appraisals for key executives• Motivate Board members through recognition and money• Schedule enough time to examine facts and make decisions
Lead to WinSlide 101 August 25, 2009
Lead to Win
Aligning Human Resources and Business Strategy
August 25, 2009
Mike McInerney, VP, Aon ConsultingIrene Kohut, Senior Consultant, Aon Consulting
Lead to WinSlide 102 August 25, 2009
Objective of Today's Session
• To provide a framework for thinking about and developing an effective Human Resources strategy that will align with and support your business.
• To provide perspective on why it's important to consider Human Resources issues early in the business planning cycle;
• To provide an overview of key Human Resources considerations for new businesses.
Lead to WinSlide 103 August 25, 2009
Today's Agenda
Overview – The Path of A New Business1
How can your Human Resources strategy drive the growth of your business?2
Important Considerations in Developing Your HR Strategy3
Building a Human Resources Strategy & Programs4
Other Considerations5
Q&A and Closing Comments6
Introduction to Aon Consulting
Lead to WinSlide 104 August 25, 2009
Introduction to Aon Consulting
• A global human capital consulting, technical services and outsourcing firm
• Four practice areas:
– Owned by Aon Corporation, www.aon.ca, a global risk management firm
Retirement Strategies(Pension & Actuarial Consulting, Financial Planning, Investment)
Employee Benefits Outsourcing(Pension & Benefits Administration,
Claims Administration)
Health Strategies(Benefits, Integrated Absence
Management, Wellness)
Human Capital(Total Rewards, Compensation,
Communication, Survey & Benchmarking, Recruitment
Strategies, Talent Strategies)
Lead to WinSlide 105 August 25, 2009
Introduction to Aon Consulting
• Aon Consulting Canada is an industry leader in human capital consulting and outsourcing services across the country
– More than 800 employees, with bilingual capabilities in 14 offices across Canada
Irene Kohut Senior [email protected]
Michael McInerneyVice [email protected]
Lead to WinSlide 106 August 25, 2009
Aon works with Leaders / Leadership Teams to:
LeadershipPerformance
Collaborate Scale
AlignSpeed
Lead to WinSlide 107 August 25, 2009
The Path of A New Business
3 Different Growth Curves
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
Time
Re
ve
nu
e
$-
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
Co
mp
en
sa
tion
&
Re
wa
rds
Equity, hybrid roles,
high risk
Cash, defined roles, market
driven
Limit of the Entrepreneur
Idea Generation
Initial Growth
Differentiation
Success
Plateau
Failure
Lead to WinSlide 108 August 25, 2009
The Path of A New Business
Growth Curve Characteristics of Business Characteristics of HR Strategy
1) Success
(red curve)
high, profitable growth
mature and scalable business
HR strategy aligned with business strategy;
market-driven roles with increasing responsibility;
reward systems designed to drive business performance;
2) Plateau
(blue curve)
marginal to no growth
limited growth in new business areas;
HR strategy likely not fully effective, for example:
reward systems may not link to business performance or not promote the right type of performance
Employment brand may not be strong enough to attract / retain critical talent;
3) Failure
(yellow curve)
poor business performance;
declining market share
HR strategy likely misaligned with business strategy, for example,
business requires innovative, risk-takers but rewards systems may attract / retain risk-averse employees;
Lead to WinSlide 109 August 25, 2009
Driving Strategy through HR
An effective HR Strategy drives: – organization performance
• aligns employees with business direction– culture – the values, beliefs, behaviors:
• establishes the norms for being part of the organization– competitiveness:
• creates a competitive advantage in the "war for talent"– attraction / engagement / retention
• supports the business need to maintain a strong talent base• determines what's it like to work there – which drives what employees
will say to others about what it's like to work there– compliance / governance:
Investing time in building your HR Strategy early in your business cycle – establishes a strong base for future growth
Lead to WinSlide 110 August 25, 2009
HR Strategy Aligned with Business Strategy
Lead to WinSlide 111 August 25, 2009
Important Considerations in Developing Your Strategy
• Think about the "end goal" – this will determine your Human Resources strategy:
– will you grow the business organically – or through M&A?
– will you sell the business once it reaches a certain size?
• Understand what you need from employees to make your business successful;
Important questions:
– What external and internal environmental factors are you facing:• External: legislation, competitive environment, economic factors• Internal: attrition, engagement levels, skill requirements
– What kind of culture and work environment do you want to create?– What do you want your company to be known for and what will differentiate your
company from competitors for talent? (e.g. challenging work, flexible time) – What skills and behaviors will drive business success?
• What you measure is what you get– What are shareholders/ stakeholders expecting?
Lead to WinSlide 112 August 25, 2009
Focus on what's most critical first…
Not everything needs to be done immediately – focus on the most criticalelements first to build an HR strategy to help move up the growth curve faster….
Year 1-2 Year 2-3 Year 3+
HR Strategy
Recruitment
Pay
Performance
Training
Pay & Benefits
Learning /Leadership Development
Succession Planning
Workforce Planning
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Building a Human Resources Strategy
Workforce Planning / Recruitment & Selection
Idea Generation & Initial Growth • understand the kind of people you want to attract to your organization (e.g. risk-takers, innovators, collaborators, etc)• be clear on the skills that you need to attract• know your competitive advantage in the market for talent• know what you can afford to spend to attract the talent that you need
What next?…..
???
Lead to WinSlide 114 August 25, 2009
Building a Human Resources Strategy
Workforce Planning / Recruitment & Selection
Idea Generation & Initial Growth• understand the kind of people you want to attract to your organization (e.g. risk-takers, innovators, collaborators, etc)• be clear on the skills that you need to attract• know your competitive advantage in the market for talent• know what you can afford to spend to attract the talent that you need
Differentiation• assess your workforce requirements in the future – and build a plan to meet the requirements – combination of internal development and external recruitment• implement a more formal selection process to ensure the right kind of talent is brought into the company.• build your employment brand
What next?…..
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Building a Human Resources Strategy
Rewards
Idea Generation & Initial Growth• understand what you can afford and what your competitors are doing (e.g. which programs, how much, etc.)• start with the basics – and grow from there:
• base pay – what can you afford?• equity programs (e.g. stock options) – can this offset a lower base pay rate?
Remember:• compensation programs are highly effective in driving behaviors• it's hard to take something away once it's in place
What Next?…..
???
Lead to WinSlide 116 August 25, 2009
Building a Human Resources Strategy
Rewards
Idea Generation & Initial Growth• understand what you can afford and what your competitors are doing (e.g. which programs, how much, etc.)• start with the basics – and grow from there:
• base pay – what can you afford?• equity programs (e.g. stock options) – can this offset a lower base pay rate?
Remember:• compensation programs are highly effective in driving behaviors• it's hard to take something away once it's in place
Differentiation
• basic policies – to meet legislative requirements (e.g. pay equity, overtime)
• understand your desired market positioning – for each element and overall;
• be deliberate about how you want to differentiate yourself from competitors – know what they are doing – but, more importantly, understand how to use reward programs to create a competitive advantage and drive your business results;
• be particularly cautious about Executive Compensation – highly scrutinized.
What next?…..
Lead to WinSlide 117 August 25, 2009
Building a Human Resources Strategy
Rewards – Understanding the competitive landscape
Idea Generation & Initial Growth
• free salary information on web – e.g. salary.com,
• use this publicly available data with caution – not accurate as compensation surveys conducted by professional survey companies
• ad hoc data points:
• information from headhunters
• ad hoc posting of salary information
• recruitment experience
Differentiation
• purchase credible compensation surveys from professional survey organizations
• For example – Aon Radford survey ( www.radford.com )
What next? …..
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Building a Human Resources Strategy
Performance
Idea Generation & Initial Growth• communicate, communicate, communicate….
• help employees understand your vision, values and expectations
• make sure employees know what it takes to make the business successful
What next?…..
???
Lead to WinSlide 119 August 25, 2009
Building a Human Resources Strategy
Performance
Idea Generation & Initial Growth• communicate, communicate, communicate….
• help employees understand your vision, values and expectations
• make sure employees know what it takes to make the business successful
Differentiation• establish a formal performance management system;
• figure out how compensation programs can help drive business performance – and design plans to achieve this goal;
• base pay strategy
• incentive plans
• recognition programs
What next? …..
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Building a Human Resources Strategy
Learning
Idea Generation & Initial Growth
• focus on "on-the-job" learning and development
• encourage teamwork and cross-functional interaction
• limited external training sessions – focused on technical skills
What next?…..
???
Lead to WinSlide 121 August 25, 2009
Building a Human Resources Strategy
Learning
Idea Generation & Initial Growth
• focus on "on-the-job" learning and development
• encourage teamwork and cross-functional interaction
• limited external training sessions – focused on technical skills
Differentiation• develop a strategy that can be communicated – and used as a differentiator• balance between on-the-job learning and external training
• understand the competencies and skills required to drive the business and develop programs to develop / enhance;
What next? …..
Lead to WinSlide 122 August 25, 2009
Building a Human Resources Strategy
Leadership and Succession Planning
Idea Generation & Initial Growth• build a strong leadership team to get your business started
• may need to pay premium to get the right people • look for "fit" with your values and the culture that you want to drive
• diversity of skills, opinions, experience• keep talking to your leadership team to ensure engagement / retention
What next?…..
???
Lead to WinSlide 123 August 25, 2009
Building a Human Resources Strategy
Leadership and Succession Planning
Idea Generation & Initial Growth• build a strong leadership team to get your business started
• may need to pay premium to get the right people • look for "fit" with your values and the culture that you want to drive
• diversity of skills, opinions, experience• keep talking to your leadership team to ensure engagement / retention
Differentiation• define your strategy for ensuring you have the appropriate leadership bench-strength:
• build leaders internally – OR – buy leaders externally• develop a strategy to create and sustain a strong bench of leaders
• internal development programs / external training programs / planned job assignments, • implement a formal succession planning process to ensure back-up to address unexpected attrition in key roles.
What next?…..
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Other Considerations
• Rapid Growth Growth by acquisitions
• Integration challenges Organic growth:
• Selection / fit is critical• Don't lose focus on retention
• it costs between 1-2 times annual salary to replace experienced
talent. Recognize when you are big enough to need more HR infrastructure, e.g.:
• salary ranges, detailed policies and procedures, integrated reward strategies, etc.
• Expanding outside of Canada Cultural differences Legislative differences Labour market differences
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Closing Comments
• Know your end game – that will drive your HR Strategy
• Leadership team is critical;
• Culture and rewards will directly impact your business performance;
• Your employment brand can be your biggest asset in attracting, engaging and retaining critical talent;
• Difficult to change culture, behaviors, work environment once it's in place;
• Think about retaining expert Human Resources support early in your business planning:
– Full time or part time human resources professional– External consulting services as needed
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??
Lead to WinSlide 127 August 25, 2009
Professional Profile
Michael McInerney Vice President
Position and ResponsibilitiesMichael is Aon Consulting’s lead for our Canadian Executive Performance and Rewards specialty.
Areas of Specialization With more than 30 years of broad-based corporate human resources and consulting experience, his specializations include human capital analytics, business strategy execution, organizational governance, rewards strategy, and executive pay and performance. Michael is known for his crisp articulation of ideas and his poignant ability to tie deep insights and advice from his broad knowledge base.
BackgroundPrior to joining Aon Consulting, Michael was the Canadian leader of Axiom Consulting. He was also the President of Sibson Canada, served on the Board of Directors of Sibson, and built the Change Business for Sibson Worldwide. Prior to Sibson, Mike held executive positions with various companies including IBM, Xerox, Gulf Oil and Northern Telecom (Nortel). For the past nine years he has been on the Board of Directors of Bank of America Canada (formerly MBNA Bank Canada).
EducationMichael has a MBA from the University of Western Ontario and an Honours Bachelors degree in English from York University.
Publications & AffiliationsMike is widely quoted in the business and trade media, including Macleans Magazine, The Toxic Workplace, The Globe and Mail and The National Post. He has also given numerous radio and television interviews with CBC and CTV. Mike is the creator and host of the “6 Symposia on the Organization of the Future” and has co-authored the “Knowledge of Pay” and “Compensation for Chief Executive Officers – A test of Corporate Governance”. Mike is a speaker for the Conference Board of Canada, The Federated Press and Insight Conferences, and is currently developing a program for the Institute of Corporate Directors (Rotman School of Business) on Human Capital Risk. He also serves on the Blue Ribbon Commission on the Governance of Executive Pay in Canada, is an instructor for the WorldatWork, and is helping to develop to the next generation of HR leaders by lecturing at the Queens University MBA program.
Contact information145 Wellington Street West, Toronto ONTel: 416-542-5681 | Fax: [email protected]
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Professional Profile
Irene Kohut, BA, MBA, CCP Senior Consultant
Position and responsibilitiesIrene Kohut is a Senior Consultant in our Ottawa office. She is responsible for working with private and public sector clients, primarily in the Ottawa area, to address their business issues related to human resource management.
Areas of specializationIrene advises clients on all aspects of people management including total rewards strategy, compensation, performance management, employee engagement and retention, succession planning, organizational design, and change management. She works with senior executive and management teams to facilitate strategy development, decision making and implementation of programs to increase the value of human capital in organizations.
Business experienceIrene joined Aon Consulting in July 2009, after 25 years at Nortel Networks. During this time, she developed critical skills in all aspects of talent management, with a particular emphasis on compensation, employee engagement and organization effectiveness. Over the last 10 years, she has led a variety of global teams at Nortel developing talent management and total rewards strategies, as well as implementing supporting programs around the world. Recognized for her own "management excellence", she has provided ongoing consulting to both business unit and corporate executives with respect to people management.
Academic Background• MBA, Human Resources Concentration, University of Ottawa • BA, English/Psychology, University of Ottawa• CCP (Certified Compensation Professional)
Associations• Chairperson, Global Advisory Group, WorldatWork (2007-2008)• Chairperson, Compensation Advisory Board, WorldatWork (2005-2007)• Ottawa Compensation Group• Ottawa Region Rewards Association
Contact information1525 Carling Avenue, Suite 712, Ottawa (ON), K1Z 8R9, CanadaTel: 613.288.3811 | Fax: 613.728.5534 | Toll Free: 800.567.5544 Extension 236 [email protected]
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Lead to Win
Optimizing SR&ED ClaimsAugust 25, 2009
Kevin Goheen
Lead to WinSlide 130 August 25, 2009
SR&ED Program – Overview
• Canada’s largest federally supported program for industrial R&D incentives
• Program has existed since the 1980’s
• Over 19,000 claims made each year
• >$4 billion in tax credits
• Small and medium companies submit 75% of these claims, generally $20,000 to $2,000,000 in expenditures
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SR&ED Program - Overview
• Canadian Controlled Private Corporations (CCPCs) can earn refundable 35% investment tax credits (ITCs) on first $3M of expenditures
• Public companies (non-CCPC) can earn 20% ITCs, applied against federal tax
• 10% provincial tax credit for SR&ED performed in Ontario
• 20% Ontario Business Research Institute Tax Credit• R&D costs CCPCs approx 30 cents/$ expenditure• Individuals can also claim SR&ED
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What is R&D Practically ?
Indications that you MAY be doing R&D:
• Technical attempts to make things faster, cheaper, better
• Lower than average manufacturing yields• Prototype failures• Large warranty costs
Each case must be analyzed within the definition of eligible activity
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SR&ED – The Concept
Point A‘base level’
Point B‘Technological Objective’
Barriers, Constraints, Uncertainties, Challenges
Work elements•Systematic•Uncertainty
•If?•How?
• Better yield• Less polluting• More capacity• More users•Faster response•Lower energy use•etc…
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Software Engineering
Some examples of advancement are: • New architectures, algorithms or database
techniques• Performance increases (response time, speed, user
or database scalability, reliability)• Interfaces between two or more existing software
packages• Development of new in-house development tools
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Mechanical Engineering
Some examples of advancement are: • New packaging equipment and procedures• Non-routine substitute of materials in injection
molding• Eliminating lead based solders in PCB manufacturing• New fuels in cement manufacturing• Emission reduction in cement manufacturing• New hockey tape production equipment• Development of new in-house CAD tools• Developing new machinery to enhance production
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Other Sectors
Some examples of advancement are: • Development of new pharmaceuticals• New growing techniques for grape vines in cold
climates• New endodontic treatments
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Eligible Expenditures
• Labour• Capital goods• Contractors
– in many cases; be careful with wording• IP ownership
• Location
• Service vs. Product
• Management of R&D project
• Material• Overhead
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Timing
• SR&ED claims must be submitted within 18 months after the end of every fiscal period
• December 31, 2009 is the deadline for submitting claims for fiscal periods that ended on June 30, 2008.
• e.g. You can prepare two claims for your fiscal periods that ended on December 31, 2007 and 2008 at same time, and submit them both to CRA before June 30, 2009.
• CRA has committed in writing to help fix administrative omissions and errors if received 90 days prior to 18 month deadline.
• SR&ED cheques usually arrive ~3-4 months after CRA receives your SR&ED documentation.
• However if you have already submitted your T2, it will need to be amended. This will delay your first SR&ED cheque, so it arrives in ~6-8 months. Subsequent SR&ED cheques will likely arrive in ~3-4 months.
• The Ontario cheque (used to) tend(s) to arrive a few months later.• Many third parties will lend against filed SRED claims.• Note that there is no filing deadline for the Ontario Innovation Tax
credit
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What’s New?
• New T661 form for YEs after Dec 31, 2008• Electronic filing• New terminology• Hard word limits on various sections of technical
descriptions; no pictures or graphics allowed• All projects to be filed after 2010 (not just top 20)• Explicit requirement for contemporaneous
documentation• HINT: Not enough space to describe projects, hence will
be more audits. Write a long technical description, cut and paste into new form and keep the long form for the inevitable audit.
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CRA Web Site
Lead to WinSlide 141 August 25, 2009
What is Involved in Filing a Claim?
• Scoping of projects• Preparation of technical reports for each project• Gathering and analysis of costs• Preparation of tax R&D forms and attachments• Submission of claim by 18 months following the year
end
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Technical Descriptions
Five components• A: Scientific or Technological Objectives• B: Technology or Knowledge Base Level• C: Scientific or Technological Advancement• D: Description of Work in this Taxation Year• E: Supporting Information.
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A: Scientific and Technical Objectives
• Preface this section with a brief description of the company and its commercial goals.
• What did you intend to achieve?
– Your work will qualify for SR&ED if you generate new knowledge to do new things and make technologies perform in unusual ways. You must intend to advance knowledge of your subject.
– Use numerical goals where possible.
– Emphasize the “methods and practices” that you wanted to develop.
• For multi-year projects, include a technology roadmap which you probably have from a business plan.
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B: Technology Knowledge Base
• Describe what you knew internally about the project before beginning and what other companies have done
• You are not expected to know “trade secrets” of others.
• Area B is very important for software claims, where common knowledge evolves rapidly. Is often challenged at technical review.
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C: Scientific and Technological Advancement
• Describe what achievements you hope to gain:– “It would be an achievement if…”
• What was difficult? Stress uncertainty. Begin your paragraphs using these phrases: – “We did not know how to…”– “We were unsure whether we could…”– “We could not understand why…”– “Our problem was difficult to solve because…”
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D: Description of Work in Taxation Year
• For multi-year projects, described the status as of the first day of the FY
• What did your employees and contractors do?– Describe the systematic way they investigated your
technical challenges.– Describe approaches they contemplated, but abandoned.– What tests and analysis did they perform?– Described what lessons you finally learned.– Don’t use certain phrases (“trial and error”, “beta version”,
“optimize”)• Describe the status of the project on the last day of the FY
and, for multi-year projects, your plans for the next FY.
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E: Supporting Information
• What documents exist? – high-level overview– functional specifications– Prototypes– source code– log books, bug reports– emails– minutes of meetings, etc…
• Just the titles. Do not submit copies of the documents to CRA.
• List all the contractors and describe what they did very briefly.
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New Documentation Requirements
Base Level Knowledge
Uncertainties Systematic Work Resources
Planning Docs X
Time Sheets X
Experiment Design X X X
Lab Notebooks X
Source Code, System Architecture, etc..
X
Trial Run Records X
Progress Reports, Minutes
X X
Test protocols, data and results
X X
Photographs and videos
X X
Prototypes, scraps X X
Contracts X
Others X X X X
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Preparing for your SR&ED Review
• Technical– Prepare a slide deck from the T661– Rehearse, rehearse, rehearse– Let the reviewer present– Don’t let the reviewer “wander around” your shop.– Silence is your friend; shut up.
• Financial– Can be extensive– Examples
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Relationship with IRAP
• Advantages of having both– Usually SRED technical review goes better (or doesn’t
happen)– Forces documentation– Cash flow improves 18 months– Financial risk drops– ITAs are usually on your side; CRA reviewers are not on your
side.• Disadvantages to having IRAP
– Reduces SR&ED claim, unless you get IRAP to pay for non-eligible activities
– e.g. R&D project with $50K salaries, $16.5 contractors, 65% overhead
• With $50K IRAP Small Project support, total cost to loss making CCPC is ($5060)
• Instead get IRAP to pay for marketing or IP; total cost to company will be ($27,060)
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10-minute Exercise
• Work in LTW Groups• Define technical objectives• Define technical uncertainty• Define work performed• Identify costs• Identify documentation
Lead to WinSlide 152 August 25, 2009
Thank you!
Kevin Goheen, PhD, P.Eng.
613.726.1010 X.227
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Lead to Win
Peers’ opportunity assessment
Tony Bailetti
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Peers’ opportunity assessment
• Use same forms that external reviewers will use on Day 6• Use same rooms and groupings we will use on Day 6• Max 20 minutes per opportunity – end to end• Two participants per group are responsible for:
– Distributing the Day 6 Opportunity Assessment Form to all reviewers in the group
– Keeping time
– Running smooth opportunity assessments
– Ensuring that peers properly complete Day 6 Opportunity Assessment Form
– Collecting Day 6 Opportunity Assessment Forms and providing them to opportunity proponents
– Dealing with whatever issues may arise during the opportunity assessments
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Peers’ assess opportunities on day 4
Group I: Mobile applications
Case Room 1 Nestor Amaya & Adam McNamara
Group II: Content and media
Case Room 2 Chris Justus & Daniel Crenna
Group III: Health services and technology
Suite 350 Don Ellis and Prakash Naidu
Group IV: Software Case Room 3 Yi Li & Reinhard Messer
Group V: Consulting and applied technology
Case Room 4 Jerry Carver & Pat Seemel
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NRC-Industrial Research Assistance
Program (NRC-IRAP)
Lead to WinDoug Colley, Industrial Technology
Advisor
August 2009
Lead to WinSlide 157 August 25, 2009157
Program Overview
Customized advisory services and contributions to Canadian Small and Medium sized Enterprises (SMEs) to support and enhance their innovative S&T projects.
Range of complementary S&T and business services through linkages to many other organizations to meet SME developmental needs.
Contributions are specifically towards specialized labour costs and clients typically co-invest at least 50% of the total project costs.
Supporting innovative *Canadian firms grow stronger, grow faster, grow bigger, through technology
BTI Photonics, Ottawa, ONBTI Photonics, Ottawa, ON
Médicago, Québec, PQMédicago, Québec, PQ
*Small- and medium-sized firms with up to 500 employees*Small- and medium-sized firms with up to 500 employees
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158
NRC-IRAP Sites Across Canada
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Ottawa area IRAP Staff
• Llynne Plante, Director, supported by three staff (Wendy McEvoy - Contributions, Karen Logan- Admin/ Contributions, and Monique Tremblay- Admin
• Area ITAs: Doug Colley, Ken Hitchmough, Jeff Linton, David Lisk, Bryan Murray, Bernie Schmidt, Janice Singer, Vern Sulway, Harriet Waterman (Kingston), Grégory Fruchet, Dan Trudeau, Mike Barré, Liza Medek, Pierre Meloche (Gatineau), Michel Mirota (Gatineau)
Lead to WinSlide 160 August 25, 2009
160
Field Staff of the IRAP ProgramThe *ITA Advantage
Experience 240 field staff 75% have Masters or PhD 80% have specialized
industrial experience 45% have run their own
R&D facility 65% have some experience
in working at other federal government labs or departments
34% have been entrepreneurs
Outreach Field staff are located in 147
offices / 100 communities Each work with 42 clients per
year 11 of their clients will receive
funding from NRC-IRAP Typically make 105 client site
visits a year
Services R&D project advice Competitive technical
intelligence Networking and linkages Project follow-up Financial resources
*Industrial Technology Advisor - ITA*Industrial Technology Advisor - ITA
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IRAP Business Model
Network,Linkages
Diagnostic ($)
InternationalReadiness
IntellectualProperty management
New, qualified personnel
Y ($)
Strategic planning,Market assessment
($)
R&DContributions
($)
Technical, engineering and business advice
CLIENT
CLIENT
Strategie d’in
novation
Innovation stra
tegy (Plan)
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IRAP Services to Firms
• R&D Project Advice
• Competitive Technical Intelligence
• Networking Opportunities and Linkages
• Project Follow-up
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Funding Opportunities & Programs
• Contributions to Firms for R&D Projects
• Contributions to Innovation Partners
• Youth Employment Strategy
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Total Expenditures by Industry Sector in 2007-2008 ($ in Ms)
164
What are the challenges faced by our clients?
78% of NRC-IRAP clients have fewer than 50 employees – and most (60%) of them have fewer than 20
Do not typically have large, developed R&D departments nor technical expertise on hand
Management capacity challenges
Limited network nationally and internationally
NRC-IRAP worked with some 7,645 clients in 2007-2008; of which 1,971 received some form of funding
Given current economy, are having difficulty accessing or sourcing investment capital
NRC-IRAP’s Number of Clients by Province in 2007-2008
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2009 Federal Budget
Canada’s Economic Action Plan
Additional
$200 M
over two years
Purpose 2009-2011 Projected Impact
Contributions to firms $170 M 1,400 firms
Graduates through YEP $30 M 1,000 post-secondary
graduates
With existing organizational structures and existing operating dollars
What about this new (Jan 2009) announced funding?
165
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For information on NRC-IRAP To reach an ITA
Call our toll-free number: 1-877-994-4727
Contact us
Lead to WinSlide 167 August 25, 2009
167
Lead to WinSlide 168 August 25, 2009
Lead to Win
Company introduction
David Hudson
Lead to WinSlide 169 August 25, 2009
Participants introduce companies
• LTW participants wish to hear what other participants are working on
• Hard limit: 3 minutes per firm• No Q&A• Opportunity to:
– Practice your value proposition– Identify what you need to advance your business (a partner, a
skill set, a service, etc)
• If anyone wants to talk to you further, they can find you afterwards and during the next two days
Lead to WinSlide 170 August 25, 2009
Groupings: 34 individuals in 24 opportunities
I. Mobile applications
II. Content and media III. Health safety services and technology
IV. Software V. Consulting and applied technology
Location Case Room 1 Case Room 2 Suite 350 Case Room 3 Case Room 4
8:30 a.m. Nestor AmayaKenn Hussey(Ultra inexpensive wireless thing)
Donald Smeth(Media DigitalSignage)
Don Ellis, Alan Graves(Elder care application service provider)
Sharon Lewinson, Tom Lewison (Rideshark)
Bilal Ahmad(Margalla Works)
9:00 a.m. Ben Cliffe, Anoop Nannra(Mobile apps suite)
Daniel Crenna (Lunarbits)
Prakash Naidu,Kshirsagar Naidu(Multipoint stimulation)
Yi Li(Enterprise rights management)
Mihaela AndronicJerry Carver(Business environment mapping and shaping)
9:30 a.m. Randy Jones(Report away mobile)
Rob Johnstone, Louis Payant(Learnetica)
Reinhard Messner(ERP for ISO certification)
Joe Babiarz, Marvin Krym, Guyves Achtari (The unwired enterprise)
10:00 a.m. Jeff MacDonald (Mobile applications suite)
Chris Justus(Biz Quiz)
Art Munro(Seven Day Office)
Ian Brown(Career search engine)
10:30 a.m. Adam McNamara,Tariq Zaid (Hosting for business games and business applications)
Dinesh Shah(AuthorX)
David Nadeau (Infoglutton)
Terrence Chen(Inefficiencies in software development process)
11:00 a.m. Oscar Vargas(Warehouse tracking)
Pat Seemel(Structured group facilitation)