Duke ECE 490L: How to Start New Ventures in Electrical and Computer Engineering

Poornima Vijayashankerpoornima@femgineer.com

Jeff Glass jeff.glass@duke.edu

Akshay Rautar118@duke.edu

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Review

Duke ECE 490L

• Corporate Structuring

• Types of Corporations

• Equity, Debt, Assets

• Delaware

• Board of Directors

• Board of Advisors

• Endgame

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Announcements

• No lab next week - next lab is week 7, but there will be prep work!

• Quiz 2 will also be week 7 during lab.

• Quiz 1 results in 2 weeks.

• Teams should be settled.

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Idea Summary

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Agenda

• Why do we need a team

• When to assemble a team

• Founding team composition

• How to expand a team

• How to manage a team and keep them motivated

• Dealing with departures

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Your idea is good but it can be better.

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Ideas start with a founder and innovation happens with a team.

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Why do you need a team?

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Why You Need a Team

• You are limited

• Skills, talents, experience, knowledge

• More minds needed to solve problems

• Brainstorming, bringing in different perspective and experience, and coming up with richer solutions

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Before you assemble a team...

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Necessary Conditions

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• Have an idea that YOU are committed to

• Translate your idea into a vision

• Long term plan (roadmap)

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Why is it important to wait?

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People join teams to build.

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Entrepreneur

Technologist Investor

Inventor/Innovator

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Innovator

• Great at coming up with a novel idea or product

• Poor estimator of costs

• May not know how to scale the technology

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Entrepreneur

• Holds team together, CEO.

• Doesn’t assume 2 jobs, because responsible for day-to-day decision, and in charge of team members.

• Success-oriented

• Blends other perspectives

• Keeps focused

• Money isn’t everything

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Investor

• Good sense of people

• Well connected

• Focused on monetary returns

• Impatient

• Capitalistic

• Dispassionate

• Not interested in tech details

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Technologist

• Focused on tech

• Development oriented

• Interested in improving ease of operation of the tech

• Will it sell?

• Cost optimization because innovator/inventor is a poor estimator

• Training oriented

• Focused on operations and maintenance

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Entrepreneur

Technologist Investor

Inventor/Innovator

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Team Dynamics

• Backgrounds and personalities of core members matter

• Reflects culture of the company

• Understand strengths and weaknesses of each other

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Communication is key to building.

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“If you are so smart, how come we continually have to use outsiders?”

- Technologist

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Getting Outside Help

• Even experienced technologists need to understand in great details the nuances of the technology.

• Could mean success or failure.

• It’s not about knowing everything, its about getting things done!

• Identify the need for outside help.

• People who can fill need is key to success.

• Red Teams: peers who attack or look at efforts from different angles.

• Confidentiality must be established and honored.Duke ECE 490L

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Expanding the team.

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Recruiting is a sales process.

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What do the best sales people do well?

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They don’t sell.

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They get you to buy.

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Team Building

Idea

Build

RecruitLeave

ChangeOrganization

Convey VisionSetup Criteria for Recruiting

Process for Building & CommunicatingConflict Resolution

Retain TeammatesMotivate

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Sourcing Interview Offer

Recruiting Process

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Recruiting Process

Specify position

Who do you need?- culture- skills- experience level

Who matches the position?Who doesn’t match the position?

Everyone should know.

Identify ideal candidate

Communicate criteria

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Find common ground to form a connection.

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Gauge

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• Are they interested in your idea?

• Do they like working on a small team?

• Do you enjoy spending time with them?

• Are they capable of adapting and growing with the team?

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Interview

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• Make interviewee comfortable

• Ask about background and interests

• Have them teach you something first

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Interview Evaluation Criteria

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• Demonstrates

• Adaptable

• Capable

• Quality

• Acknowledge their limits

• Pushes back with poise.

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Make them solve REAL problems.

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Before you talk numbers...

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Sell your vision!

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Crafting an Offer

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• Role

• Numbers

• Leave room for negotiation

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How to Definitely Get Rejected

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• Low ball offer

• Aggressive deadline

• Not addressing their needs

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How to Deal with a Counter Offer

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• What’s it like to work at the company?

• Company’s potential for growth and success?

• What is the opportunity I am gaining by leaving current position?

• How will I grow?

• Who will I be dealing with on a daily basis?

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REJECTED

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Why?

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Not enough to recruit.

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Process for building.

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Process with change over time.

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Team Building

Idea

Build

RecruitLeave

ChangeOrganization

Convey VisionSetup Criteria for Recruiting

Process for Building & CommunicatingConflict Resolution

Retain TeammatesMotivate

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Examples of How Process Changes

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Talent

Communicate Build

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Keep people motivated.Keep people communicating.

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What keeps talented people from innovating?

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Inattention to Results

Avoidance of Accountability

Lack of Commitment

Fear ofConflict

Absence ofTrust

Time, credibility, and understand each members strengths.

Passive aggressive behavior. Conflict can be productive.

Looking for consensus and certainty.

Doesn’t speak up against others work.

Focused too much on individual results than team.

The 5 Dysfunctions of a Team

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Inattention to Results

Avoidance of Accountability

Lack of Commitment

Fear ofConflict

Absence ofTrust

Team Leader’s Role

Personal histories, 360 Feedback, and shared experiences.

Don’t prematurely interrupt, give people time to resolve amongst each other.

Make the decision despite lack of consensus, and be OK with it being wrong.

Establish standards and systems for reviewing work.

Focused on results, OK to highlight individual contributions but must be reserved.

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Sometimes people need to leave.

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Why People Leave

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• Not a culture fit

• Need a different environment

• More challenges

• Fewer challenges

• May no longer be interested in idea or direction

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Keep building!

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Be clear about reasons for departure with rest of the team.

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Team Building

Idea

Build

RecruitLeave

ChangeOrganization

Convey VisionSetup Criteria for Recruiting

Process for Building & CommunicatingConflict Resolution

Retain TeammatesMotivate

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Retention

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• Training and support

• Clear evaluation criteria for progress

• Acknowledging efforts and accomplishments

• Celebrating milestones

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Review

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• Why do we need a team

• When to assemble a team

• How to assemble a team

• How to manage a team and keep them motivated

• Dealing with departures

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