Step Three. Working Plan

We have now completed the first two steps of a five step process that I take my clients through when building a sustainable startup. Step one, Clarity - understanding what we want to accomplish as opposed to what we think we want to accomplish. Step two, People - Identifying who we need and not what we need. Step three is building a Working Plan.

A Working Plan is different than a Business Plan. I define a business plan as a document that is primarily used to pitch your vision for funding purposes. To me a working plan is a process. Step three will run through the process of a working plan. This process is really a business management and project management process that is simple, scalable and measurable.

As I go forward and explain this process I will be assuming that Step one and two have been done. This means that we have an organization that is clear, (Step 1) on it's purpose and the difference it makes in it's industry and/or the world. The organization knows what values are fundamental and irreplaceable. What business it is in and against whom it competes. How it's approach differs from that of its competition. And, what its' goals are next month, quarter, year and 5 years. The organization also has attracted people to a purpose and not a cause (Step 2) and has mapped the responsibility's and task of its people to values and goals of the organization. I think that step one and two are the two steps that are the most important in an organization and they are the least well done, (if truly done at all) in most organizations. If this is the first Sustainable Startup blog post you are reading it may look as though steps one and two are overwhelming. I think this is how most organizations "feel" about it as well so they tend to minimize the importance of the first two steps by calling it the "soft stuff". If all this does seem overwhelming take the time to read the past posts that run through steps one and two and I think you will be able to breath a sigh of relief that there is a way to actually accomplish these first two steps in a simple and systematic manner. I am not saying it is easy, a lot of serious thinking has to occur but for sure if you just follow the process it is very doable and it will set your business up for success.

The Working Plan process that has developed over the years for me has three main characteristics. 1. Simple, 2. Scalable, 3. Measurable.

1. Simple: This means that anyone and everyone in the organization must be able to understand the process and utilize it themselves. A working plan is something that changes every moment in its finest detail which mean that everyone must know how to work the process and build their own working plan for their objectives or team at any moment. Simple is key because everyone has to be able to do it.

2. Scalable: If everyone can work the process then the working plan is scalable.

3. Measurable: This is so key to staying on track with the goals and values of the company. In this process we will be able to make everything measurable.

Next Post we will run through an exercise on establishing our working plan.

Touching base

This is a quick post to let everyone know I am back from my holiday. I had a great 10 days with my son in Montana at Cub Scout Camp, then canoeing down the Bow River in Southern Alberta all interspersed with time with family. It has been a great summer and I am looking forward to a fantastic fall.

As outlined by the Clarity Questions http://sustainablestartup.blogspot.com/2009/05/answers-from-plan-hq.html for Sustainable Startup the end of the Quarter is approaching on August 31/09. We had three Widly Important Goals to accomplish. I wanted to touch base on where we are at with these.

Goal 1. Average one quality post per week as rated by the members. May 7th was when the goals were posted which equals 12 posts required to meet the quantitative part of the goal. This is post 10 and I have completed post 11, The Working Plan Defined, which will go up Tuesday August 25th. I will have one other post completed and up by the end of the month which will make 12 posts. Post 12 will be demonstration of how to develop and use a working plan based on the clarity and setting the goals/tasks of Sustainable Startup up for the next month (September) and Quarter, (ending December 31/09) running through the working plan process. The first post in September will be a post asking your candid feedback on the blog and the content in particular. Getting your feedback will allow us to see if we are satisfying the qualitative part of the goal - the quality of the posts as determined by the members.

Goal 2. Grow from 25 followers to 40 members by the end of August. We are at 37 as of today. 3 more to go in the next week. If you think this Sustainable Startup blog worthy we would sure appreciate you recommending it to anyone you think would appropriately benefit.

Goal 3. Have a rough outline for a book. I am anticipating that the outline for the book will be following a similar outline that this Blog has. We will spend time next weekend compiling what we have learned since starting this blog and post a rough outline by month end.

Sustainable Startup Bootcamp held it's second session. Seven of us were in attendance. I thought the energy was really good! If anyone who was there would like to discuss any aspect of it please feel free to comment in the comment section at the bottom of this blog. Two highlights for me: 1.) We are adhering to the values of the bootcamp that the participants defined as most important because of the measurable tasks we put in place - this is a working plan in action! 2.) Clarity Question Challenge, I am looking forward to one on one phone time with each of you over the course of the next month to further review, refine and challenge you on your Clarity Questions.

Lastly, I have some emails that a few of you sent me that I will be getting caught up on in the next couple of weeks. I will follow up via email or phone if appropriate. I hope you have all had a GREAT summer, I look forward to a fantastic fall.

With great regard,
Cameron

(Measurable) Working Plan

I would like to welcome the new members. Thank you for taking the time to be a part of the Sustainable Startup group. If you would like to have access to our Sustainable Startup online business plan by PlanHQ please email Erika@cameronchell.com and she will arrange free access for you.

Before I get into this weeks post I would like to make a special mention of Marc Dewalle. Marc is the force behind http://www.northcarolinastartups.com/. Somehow Marc became aware of our first boot camp held last month and took a look at the content on the Sustainable Startup Blog, in particular as it relates to Step one, Clarity. Marc wrote about us on his blog with a positive endorsement. http://www.northcarolinastartups.com/2009/07/24/if-you-answer-just-1-question/ Thanks Marc! After having had a look at Marc's site I want to encourage everyone to check it out, regardless of where you are doing business. If you are into startups or venture capital it is great resource and well put together.



A Measurable Working Plan is not a Business Plan. I am not going to kill a bunch of pixels on the difference between a working plan and a business plan but it definitely is deserving of some upfront clarification. I look at a Business Plan as a summarized research document that is presenting a business case to raise capital. A working plan is process by which you manage your business. I go a little further and call the working plans I put together for investors and/or shareholders Measurable Working Plan(s), I will explain. Because in general I work for investors and shareholders, (the money people) of startups more emphasis is put on accountability as opposed to possibility. Possibility is what the founders and early management tend to focus on, and rightly so I might add. In my experience the accountability mentality has shown to be counter productive to the management team/founder, (I know this goes aganist current popular thinking). Further, I have found it is very often used as quick fix answer that the money people like to throw out when things are not going as per their expectations, "We need accountability" (just as an aside another quick fix answer that I hear a lot is "it is a communication issue"). I have come to believe that the current accountability mentality is about blame and not about problem solving. The fact of the matter that I have witnessed is that it is rare that I have worked with an investor that wants the startup to work more than the founder or founding/early stage management team does. The founder or management team is generally willing to do what ever it takes to make the startup successful. The key that I have found to be effective is to make the project measurable at any point as opposed to "accountable" at certain points. If a project is measurable at any given time I have experienced that a founder and/or management team will make the needed changes or adjustments however harsh to ensure success. If a team is clear and measurable I have not seen an investor that would be more harsh than the team would be on itself. This is why I like the measurable mentality as opposed to the "accountable" mentality. One may think that I am splitting hairs but I assure you that difference is very significant. I hope the writings and interactions we have on this topic on the upcoming posts will provide insight on this matter.

In the next few posts we will layout the five areas that define a successful Measurable Working Plan. Then, explain how to build and manage a measurable working plan on a daily basis.

Bootcamp and Blog update

I hope everyone is having a great summer. I have been traveling a fair amount spending time with family during this summer season. I have been slow the last couple of weeks on the blog updates but have still been very busy working on offline blog actions and upcoming content.

We had our first Sustainable Startup Boot Camp on the afternoon of Thursday July 21st. It was Awesome! 10 of us were there and the energy was super cool! The first thing we did was establish the purpose and values of the boot camp and then the actions that will allow us to measure if each of us are managing and participating in Boot Camp based on the "Boot Camp Values" we established. I would so like to write more about this but I think I will leave that to the people that attended. If you attended I encourage you to share your experience, questions and insight in the comment section at the end of this post.

Secondly, I wanted to let everyone know that Blogger has a bug that is affecting the Members listing section of 1000's of blogs that are hosted on the Blogger platform. I apologize for this bug and thank you for letting me know about the problem. You can still sign up as a member of the blog by clicking on the FOLLOW BLOG button at the top of the blog in the thin blue header, (third button from the left). All the bug is currently doing is somehow not letting the Members list be visible on the side bar of the Blog. I am not sure how long it will be before it is fixed. If you are trying to sign up and having problems or have any concerns in general please email Erika, erika@cameronchell.com so that as soon as the problem is fixed or we know of the solution we can inform you.

Thanks for follwoing Sustainable Startup Blog and another thanks to those who were able to attent the 1.st. Sustainable Startup Boot Camp. The Next Boot Camp will be held on Friday August 21st. 12pm (lunch will be served) to 3pm. Please let Erika, erika@cameronchell.com know if you can attend. Boot Camp will be held at Tarco Engineering, (thanks again Tarco - you guys are AMAZING!) 3004, Odgen Rd. S.E., Calgary, Alberta, Canada.

I will sign off tonight letting you know you can expect to see a new blog post as it relates to the next step "A Working Plan" next week.

1st. Sustainable Startup Boot Camp

Welcome to our two new members Amit and Adam, hope you enjoy the blog.

This is a quick post to announce the start of Sustainable Startup Boot Camp. The first session is going to be held the afternoon of July 21st. Bootcamp will be once a month and is designed to follow the posts of the blog starting with Step 1, (Clarity Qestions), through to Step 5, (PLWYMPYF). Bootcamp is an offering to the Sustainable Startup members in support of feedback for the blog's eventual book. No fee is associated with the Bootcamp but feedback and referrals to the blog are always welcome if warranted. In addition to the Step Work we will also be using and demonstrating different techniques useful for PlanHQ the on-line businessm plan software that Sustainable Startup Blog uses. We plan on videoing the sessions and posting the exercises and highlights.

The first session will be from 1pm - 4pm at 3004, Odgen Rd. S.E. Calgary, Alberta, Canada.

Email Erika@cameronchell.com if you would like to register.

Finally, I want to say thank you to Jessee and his partner Adam, (our new member) as this bootcamp was a result of the two of them talking up what they have been able to apply in the first couple of steps of Sustainable Startup.

In the next post we will start Step Three a measurable Working Plan.

Mapping Individuals Actions to Corporate Goals in 15 minutes!

Great comments on the last post. Thank you Scott and aa for these comments, great insights! I hope this post will add to the conversation. Look for additional posts that will address your comments in the coming weeks. Also, aa if you want to send me your email address we can continue some of the discussion one on one, thanks again for yours thoughts I thought they were very well articulated. Scott I already talk to you to much, ;-) that being said next time we grab lunch lets be sure to discuss further.


I have found that people in general follow a consistent pattern in being part of a team. first they will tend to do and move toward doing what they are good at. Second they will tend to do or move toward doing what they feel contributes most to their success on the team. HR departments in general are really good, as are profiling systems in helping facilitate the first part; getting people contributing in ways that they enjoy and are good at. However, the second part of the equation is all about the clarity of the project and if someone is feeling they contribute or have value. I cannot emphasise enough the enormous importance of this second part and how due to its subtleties it is generally overlooked to the dire consequences of the team member and the successful desired outcome of the project. Not being able to manage where people can best feel they contribute is in my opinion one of the most prevalent reasons projects, startups and companies in general fail. The first part of solving this is step one, the Clarity Questions, (as outlined in previous posts). The second part is a mapping technique I have modified from the Verbalised Summary Objective, (VSO) technique. As you may recall the The VSO technique is also the foundation on which I displayed how I liked to build a "10" word elevator pitch. I was originally introduced to the VSO technique by Paul, one of Sustainable Startup's followers. He directed me to the following 3 1/2 min video http://www.bnet.com/2422-13731_23-265800.html. The video is of Howard Muzio, CEO of Group Harmonics explaining the VSO technique. Howard is using the technique for a slightly different purpose but I have found that with a bit of a twist it has been a great tool for aligning peoples talents to the company's objectives. I encourage you to view the video now and then come back and finish reading this post.

A explained in the video the formula goes like this, I use "x" (my resources) with "y" (people) for "z" (result). I have modified it for our purpose to, I use "x" (my resources) with "y1" (people) and/or "y2" (to do) for "z" (result).

I will use Erika who works on this blog with me as an example. In doing this exercise I ask two key questions. First I ask; With respect to the Sustainable Startup Blog how do you currently spend your time and with whom doing what? When Erika and I did this originally the answers were:

1/3 time on the web researching.

1/3 time administrating

1/3 time marketing

The second key question I ask is: What do you want to be doing and what do you feel you should be doing to hit the goals we have outlined in the Clarity questions.?

(You will notice that this question address both the want and the contribution, "feel you should be doing" that make up the two areas that people most gravitate toward in doing a job or working on a team) The answers I get are also more thought out and more specific but the first question is still very important as it provides a base to build on. Also, I follow the formula closely when working through the second question, in particular by paying attention to the "z" for what result. You will notice in the example below each area of the work described now has a purpose that inevitably relates back to the clarity questions.

I spend 20% of my time researching other blogs and how they are building content.

I spend 20% of my time researching other blogs and how they are attracting followers.

I spend 20% of my time with Cameron reviewing my findings, discussing ideas, understanding where we are going with his writing.

I spend 10% of my time on administrative tasks so that people have a professional experience with the blog.

I spend 10% of my time updating PlanHQ so people can see how PlanHQ works and interacts with the blog.

I spend 10% of my time marketing the blog online in a manner that we can hit follower targets.

This process takes some work in terms of having to examine what someone is doing. At first, (assuming your clarity questions are done) this make take a hour. As you become more familiar and practiced at it you can complete it in 15 min. As a company or project matures and more people are added or as goals change you can spend 15min with team members redefining their roles as they best match the clarity questions. I have found few tools as powerful as this.

One question you may have is; What do I do if this is a new hire or potential hire? I share the clarity questions with the person and then start with question #2. It is a great technique to use in an interview to see if someone really "gets it" and will be a contributor to your team. If you hire the person I suggest that you go through this process the first day they start then again at the beginning of their second week, then again at the beginning of their second month, then again at the beginning of their second quarter and then on an as needed basis but generally no less than two times per year.

This post was not easy to write and this is one of those techniques best explained by doing or demonstrating. If anyone would like to spend an hour on the phone or in person going through this for them self or their team members I would be happy to do so. If you take me up on this offer I would ask that if you think the process is usefull that you refer a friend or collegue to participate in the Sustainable Startup blog. Please feel free to email myself, cameron@cameronchell.com or Erika, erika@cameronchell.com if you would like to take us up on this offer.

Hope you have a great week,

Cameron

passion x SIMPLE = practical

The newest member of Sustainable Startup is Pierre. Pierre describes himself as a "true believer" in spiritual ethic. Awesome, Pierre I am glad to have you as part of this community, Welcome.


This post is all about the second part of the Sustainable Startup People Formula, "Simple".


If your startup is doing less than $25mm per year and/or not doubling in size annually I would be very skeptical of its success potential if it has an “HR department”. That’s correct, “if it has an HR department”. I am not against HR departments or their function; in fact I think their intended function is the most important aspect of the business. So much do I think of the function of HR that in a startup I believe the function must be handled by the senior or founding executive of the startup. I am not talking about processing payroll or the administrative tasks of HR, I am talking about areas like employee strength analysis, job descriptions, compensation, performance reviews. Also, in a startup I am not for over analysis and/or overuse of “profiling” systems. These systems have their place in a statup and are very important as an organization matures but initially I think they are relatively ineffective.


I have not seen strict personality profiling systems be overly effect in startups. These systems tend to be very accurate and insightful but not overly practical in mapping to what is getting done in the startup and what needs to get done with the resources you have. As we all know the art of the startup is in succeeding with limited resources. Rarely do we have “unlimited” resources to call upon to hire the “perfect profile” for each job task, description or title we need in order to get to market. Using the process that I will describe and demonstrate next week we can map goals to the tasks currently being done by the people currently doing them. In doing this you will see your holes and more importantly who needs to attend to your corporate strengths. You can determine who best can currently fill in what is lagging and who needs to absolutely stay focused on what is most important, (What is most important to focus on is your strengths. Your strengths are your key differentiators, Clarity Question #4)


What have we covered in the SIMPLE part of the formula? 1.) You don't need an HR department for a start up, but that HR is the most important aspect of a startup to be handled by the senior executive. 2.) Profiling systems are good but generally assume you have the money to resource the perfect person for the specific positions you have to fill. Next weeks post will describe the practical process to map your existing resources to what most importantly needs to get done in your start up.