Derek Sidebottom

Your Squad | Building Your Team To Scale

TBOP2017 ⋅ 38:43 ⋅ Filmed May 11, 2017
Keynote

Entrepreneurs and business owners (current and aspiring) — gather round and listen up!

Whether you own your own company, manage a team or department, work in a leadership role, or hope one day to make the leap and become an entrepreneur, chances are, you’re not doing it so your business can fail. No, you probably envision just the opposite: growth.

President and co-founder of the successful human resources company, Squadley, Derek Sidebottom is the “Obi-wan” who helps organizations big and small build teams with one end goal in mind: scalability. In this keynote, Derek explains that there are really only three things a company needs in order to grow: people, capital, and a compelling product or service. Think of Elon Musk or Steve Jobs. HBO, Google, Oracle and Microsoft. Exceptional people — exceptional teams — drive scalability. So if you’ve got the compelling part (and the capital part) down, all that’s left is to build yourself a rockstar squad — and that’s exactly what this keynote teaches you how to do.

In his presentation, Derek walks you through the five tools he leverages to build all-star teams and hire not just the best talent, but the right talent. From understanding where your company is in its life-cycle to defining a company vision that will actually mean something, Derek’s advice is concrete and backed up by anecdotes of his travails in the field. What do the best organizations do — and how can yours avoid playing the dreaded “Bunchball”? Find out.


Further Reading

  • The Five Dysfunctions of A Team by Patrick Lencioni
  • The Adizes Model
  • Swarm Sales
  • Scaling Up by Verne Harnish
  • Multipliers by Liz Wiseman
  • BlessingWhite

  • TRANSCRIPT

    Does anyone recognize this artwork? Silicon Valley? TV show? OK good, that means you won't know anything about this. I'm in HR and we've been talking about purpose today. I was really lucky find my purpose very early. I literally have the best job. It's fun. I get to work with people. I get to work with strategy. I get to work with technology. In my own small way, I'm changing the world with every person I hire and every person I work with. It’s wonderful and I found it by accident 20 years ago. I have absolutely the best job. I absolutely do.

    [00:43] Actually, that looks kind of important. Maybe Mark has the best job. That whole make the world more open and connected — that sounds like a pretty good job. Maybe my job maybe is not so important after all, and I'm little humbled. Maybe Mark's got the best job.

    [01:04] On second thought, maybe Ginni has the best job. That whole Watson AI thing? Fantastic! That could absolutely change the world. Mmm, maybe Ginni's got the best job. Yeah, Ginni's definitely got the best job.

    [01:19] Oh! Hold on, maybe Elon. Kingston? Queen's grad. That whole saving the planet thing sounds pretty important. That's a good gig. Solar? Electric cars? That's an important job. And his whole backup plan? Getting us to Mars, that's not so bad either. That's probably a really important job. So that sounds pretty important

    [01:45] Now only here, when I'm back north of the Border, can I play this next slide because only this group here will really know how I think absolutely has the best job and it's the next slide I'm going to show you. Rick Mercer has got the best job. Can we get a round of applause for Rick Mercer? I think he's got the best job on the planet. I still watch him every Saturday morning on YouTube and I still get to watch what he's up to and it's just super fun. He's got the best job.

    [02:13] And you're all thinking to yourself, what's this all got to do with building a team. So the fun question of the day is, what does Mark, Elon, Ginni and Rick's job have in common? What does that have to do with hiring? I'm going to tell you that at the very end.

    [02:27] I've been very fortunately to work with a lot of great organizations. Lately, more in the very small startup space. I love innovation. I love watching teams like this start (gesturing to The Breakout Project teams) in same places and get going.

    [02:41] Organizations really need just 3 things to grow. It's really simple, hard to execute. 1/ People, 2/ Capital and 3/ some kind of compelling Product or Service (Technology). As the teams are working today, they are obviously very focused on capital and getting their product right, getting attention, getting customers, getting people interested in what they're doing.


    People Fuel Organizations

    [03:07] Clearly, I'm biased. I think people are the spark and the long-term fuel that sustains an organization. And very quickly as you move away from I've got product and I've got capital you realize [you have] a people problem. I have to attract people.

    [03:26] So whether the spark starts here, for those who have been to Silicon Valley, this is the Hewlett-Packard plaque right in front of of their Palo Alto garage. Whether it starts there, this is the birthplace of Silicon Valley, there was actually nothing but orchards there. It's is fascinating and from orchards are rose the wonder that is Silicon Valley. But whether it's here, whether it's in a coffee shop, any coffee shop. In fact more and more, I think a lot of the innovative ideas are happening in coffee shops or whether it's happening right here in the Fort. You know I think that's the one constant and Elon said it best, "Growing a business is as much about the innovation, drive and determination of the people who do it as about the product they sell".

    [04:18] So let's get growing! I'm going to talk a little bit about how we build teams.

    [04:23] Anyone recognize the Silicon Valley crew? HBO? I saw a little nod back there, thanks. These guys are incompetent. I needed a fictitious team that I could make fun of while I was doing this show today. So this group, depending on the year or either doing a compression algorithm, software company or they're doing some kind of...this year, they're a video chat based company. It doesn't matter. I'm going to pretend I've been hired by them and they've asked me to come in and say, ‘Derek, we've got some funding. Now, help us build this team to scale’.

    [05:03] So having done this for a number of years, it's kind of like I got to do this little time warp and say, ‘What are the things I wish I knew a decade ago? And what are the tools that would shape and influence me if I was building a team from scratch?’ We're going to have a panel here afterward talking about that.

    [05:21] Over the next 20 minutes or so, I'm going to walk through the 5 tools that I leverage and use whenever I'm talking to any entrepreneurial team, whenever I'm talking to any group of founders who are looking to start hiring — the things to think about. It starts long before you go to Google, look up a job description and then post a job. I could spend all day talking to you about that but long before that.


    Five Tools To Scale Your Team from the First Hire

    [05:48] My challenge to any entrepreneur, it's your squad. Five tools. We're going to talk about:

    1. 1. Life Cycle
    2. 2. Why, What & Who
    3. 3. Style
    4. 4. Engagement
    5. 5. Screen For Team

    Tool 1: Know Your Stage in the Life Cycle

    [06:04] So it's interesting, every organization I've ever worked with goes through a predictable life cycle. Every company does. Every company I've ever talked to I've been able to sit and talk to them about where are you in your life cycle? What going on? And they'll describe to me their experiences. They'll describe to me their challenges. They'll describe to me all the different things that they are facing at that point in time. And Pied Piper, our fictitious company, is no exception they're very much in the early stage.

    [06:41] Your role as a leader, as you think about moving through a life cycle, is your ability to work together and quickly tackle any and all situations or not to, is your ultimate competitive edge.


    The Adizes Model

    [06:55] This model here, is from Adizes. I highly recommend to anyone who's building any team at all to spend some time looking at it, reviewing it, studying it. The idea is very straightforward. There's a corporate life cycle that starts on the left and if you don't manage it properly it ends as it goes around the cycle. Every company I speak to, when they described to me their problems or challenges, fits somewhere into here (highlighting Courtship & Infancy stages). Pied Piper is at the courtship and infancy stage. Everything on that left side is more your venture capital space, growth mode. Everything here on the other side, started to struggle maybe more private equity. Definitely in need of some fixing and some rejuvenation. But we're in courtship and infancy.

    [07:39] The model, actually it's fascinating because it talks about the normal type of challenges you face at each stage and the abnormal ones. I'm going to pull up a couple of different abnormal and normal challenges from this very simplified model. This is where I get to tell entrepreneurs, you're not crazy. I get to tell founders, you’re not nuts. This is normal stuff you're facing in the very early days. You're going to have no procedures, everything is crazy. Everything is management by crisis. Hands on leaders are involved sometimes more than they want to be. Sometimes more than the staff wants them to be. Lack of managerial depth. Fast decision-making. Founder commitment is tested. Again, these are normal sorts of challenges in the very early stage infancy companies. Some of these organizations just now will be facing this challenge in the next couple of weeks as they get funding and start pursuing their dream.

    [08:39] On the abnormal side though, this is more fascinating. Rush to Market before ready. Excess perfection. Can't attract Talent. Dictatorship style. Out of touch leadership. Non-supportive family. That bottom line is very interesting, founder commitment tested. You have got to want it.

    [08:59] We've been talking about purpose for the last couple of presentations that's been a main theme. Knowing that fuel it's coming from within. That you're actually being motivated to do something that you are powered by is the fuel you need a having the network and family around you is absolutely critical. But in the infancy mode, these are the sorts of things that you're going to face and you're going to have to navigate. It's going to happen. The implication on building your team is, can the person you're hiring deal with these challenges? Can the person you're hiring actually help you navigate these challenges. Will they pull you into the abnormal zone? Will they pull you into areas of distraction? If you're unable to get out of the infancy zone, you'll never make to the next space which is much more exciting.

    [09:55] Go-go organizations are on fire. They are growing. They have product market fit. Things are moving at exponential speeds. You've got your capital, your product works, you are hiring very quickly. Unfortunately, everything seems like a priority. Has anyone ever worked in these organizations? It's intoxicating and that's part of the problem. Everything's a priority? Really? Does it need to be? How many meetings do we need to ‘align’? Right? We should have cleaned that up. Could meetings be more productive? Leadership gets very frustrated because everything is on fire and running around. There's no consistent HR. Management is sometimes not as strong as you need it to be. There's a house of cards infrastructure. And there's ad hoc budgeting. Again, we're going to come back to the impact on team in just a moment. That's the good stuff. That's the normal stuff. That's going to happen.

    [10:55] The stuff you need to avoid, is if you continue to go to the good idea of the week. If you drift off purpose. If you drift off why you're in business or what you're doing, that's abnormal. You'll never make it through ‘go-go’ to the next phase. If you don't put it cost controls, if you're unwilling to hire people better than you, if you've got key people leaving, or if you have leaders avoiding managing just to do things or a reliance on miracles, you've got a problem. And you need to fix that through hiring.

    [11:30] The real question is always who do you want on this journey after you've got capital, after you've got product and you start building teams? Where are you on this curve? You have to hire people you like solving problems with. You have to hire people that can help you with the future can navigate the now. I've seen a lot of organizations where they'll go and get very big talent but they really struggle in a much smaller entrepreneurial environment. They’ve got to do both. That's how you fix your proof your organization. You have to screen out people who will pull you into the abnormal problems. When you're interviewing it's really tempting to just talk about the skills. I guarantee this is more important.

    [12:14] So tip one, to my poor Pied Piper crew here, is you have to know where you are in the life cycle. You have to bring people in who are going to help you through the problems you were going to face. And that's the Adizes model.


    Tool 2: Why, What & Who

    [12:30] Number 2. The best organizations I've ever worked with, the ones who win great workplaces. They tend to find why they exist, what they are doing and who's doing it, earlier and better than anyone else in the market. Because let's face it, more people means more problems. It's hard to organize larger groups. You were just a group of founder's yesterday with six people around you, what are these sixty people doing over here. And it comes up really fast. So if I look at this Pied Piper website, which if you actually Google Pied Piper this is the TV show website, ‘a middle-out comparison solution making data storage problems smaller’.Who cares? I mean, that's not interesting. That's not purpose. That's kind of what you do.

    [13:21] The age old thing about vision, mission and values really differentiates and separates the awesome companies that have a great future and some of the companies that really struggle with, ‘What are we doing? Why are we doing it?’ I invite any entrepreneur very early on to say, ‘Who are you? And why do you exist as an organization?’ And it just goes back to vision.


    Vision

    [13:47] And everyone, whenever I'm doing consulting projects, are like ‘I don't understand what this vision thing is. It's kind of confusing? Doesn't it sound like mission?’ I literally put the same definition of every single time. Vision: If the organization were to achieve all of it strategic goals, what would it look like 10 years from now? And as an entrepreneur you're like, I just got off the ground here. I just got some funding. I don't want to have to think about this. I just want to live the next week. I'm telling you the differentiators between good and great spend time on this as a group.

    [14:19] I was working with a recently A-Series funded company a couple weeks ago, fascinating company called Swarm Sales, they are the Uber for enterprise sales. You can image that, you just call up a sales force person and have them come work for you. They just show up. They just got funding and the CEO said, “I really want to spend some time on vision and values because we are starting to hire.” And I said, “Brilliant! That's great. Let's spend the day offsite".

    [14:44] They got together and they co-creating everything and they came out with a really great set of vision and values and mission. And the other day, I walked over to them and I said, "Um, there's a couple of people in this room that you know don't pass that test. They don't really buy into this vision. They don't really exude and exemplify the values that you just wrote. And he kind of looks at me, and I going to get in trouble because he's watching right now, but he looks at me and goes, "No, no. It will be fine. It will be fine" And a couple of weeks later, I run into him and he looks and me and he goes, "You were right. I was wrong." I'm like, "OK, good." They had to change early but the point is that they spent the time early, the VC was like don't bother doing that and yet he was already filtering for awesome in the early days. I'm really quite excited by where he's going to go.

    [15:34] You look at the Smithsonian, and this is change the world stuff. This is exciting, right? ‘Shaping the future by preserving our heritage, discovering new knowledge, sharing our resources with the world’. Wow! I want to be part of that. That's an amazing vision.

    [15:47] Of course, Google's [vision is], ‘provide access to the world's information in one click’. Ok, well maybe I'm not that inspired but it's pretty exciting stuff. I think all of the teams here today have done a very good job of expressing what they want to do. I think that's a great start.

    [16:05] If that's vision and the 10 year story, well they're kind of made up of multiple missions to get there.


    Mission

    [16:11] So the mission statement, while some people kind of get confused on it, it's really the reason for existence. It describes the company, what it does, but it can change a lot because as the company shifts and pivots and solves problems, you may have 2-3 missions on your way to your vision.

    [16:28] Anyone watch the Ted conferences online? Pretty great. I love watching them. I'm never qualified to do that but they do a pretty good job, but ‘Spreading Ideas’ as a mission. Public Broadcast (PBS), ‘To create content that educates, informs and inspires’. Setting that mission? Again, when you've got six people working for you, no problem. You talk around the water cooler. You get 30, 40, 50, 60, 70, 100, 200, 300, not everyone's going to make the same decisions you do unless you set up this framework. So the best companies build this to scale from the early days.


    Values

    [17:04] The Values. You've got why and what's and then you get down to how. How do you want people to behave? Facebook is kind of legendary: ‘be bold, focus on impact, move fast, be open, build social value’. It can be simple. It can be aspirational. The point is you want to put and down and say, this is what we expect, how we want to interact, how we want to behave, who we are. Because when I go recruiting, it better fit into this. Otherwise, I end up with an organization that I designed, I hired for and I'm not happy with. And it's not helping me hit my dreams.

    [17:39] I've talked to a number of founders, unfortunately, 5 or 6 years in going like, ‘I don't want to work with any of these people anymore. I don't like them’. And I kind of go, ‘Well, you've go a bit of a problem, don't you? Well, we're going to have to fix that. We're going to have to work through a change plan’. I'm always like just deal with it at the front door. Right? If you spend some time on it upfront, it doesn't start with the job description, it starts with answering there questions. And what does it take? A day? Maybe two? And it saves you hours, hundreds of hours, thousands of hours, thousands of dollars. It's worth it.

    [18:11] Vision, Mission, Values.


    Goal Clarity

    [18:15] And then you get done to this interesting fable and the second resource of the day that I want everyone to remember. It's this book called, Scaling Up. You'll notice that people is actually the first step in that scaling up process. There's this fable in there written by Anonymous, we all remember it from grade school, right? We've all seen this before?

    [18:33] “There was an important job to be done and everybody was sure that somebody would do it. Anybody could have done it, but Nobody did it. Somebody got angry about that, because it was Everybody's job. Everybody thought Anybody could do it, but Nobody realized that Everybody wouldn't do it. It ended up that Everybody blamed Somebody when Nobody did what Anybody could have done."

    [18:52] Seems simple and yet how many times do we hire lots and lots of people and we don't give goal clarity. We don't make it very clear what you're supposed to be working on. This is actually a real problem. And it just compounds as you add people because now the problem is, I'm going to throw more people at the problem. Right? Here's 20 more people at more cost and I just keep throwing more cost at the problem like, ‘Wait a minute! I'm still not getting what I want’...well, they still don't know what they're supposed to be doing. So the question is as an entrepreneur you very quickly go from, " I got capital. I got product. I got service. Who's doing what?! And if you don't spend time doing that, then you're going to run out of money pretty fast. The best companies spend a lot of time on this.

    [19:39] My real point is don't plan Bunchball. Anyone ever watch soccer games with little kids running around playing soccer? It's fun. It's adorable. But it's not how companies are supposed to run. Right? That's not cool. I mean, if you ever step back and watch your company, you may sometimes feel that's what I watching. Oh my god, I'm watching Bunchball happen. Everyone just keeps diving on the problem of the day. And you think to yourself, ‘well, how did that happen?’ Well, the coach. Who's the coach? The coach didn't define the positions and how to play together.

    [20:11] I'm starting to give you some tips as to how our figures at the beginning are all alike. Now you end up with this question. Ok, great. I got the players. I got the purpose. I know why I'm here. I'm going to start adding people. Whether you like it or not, you got to deal with structure.


    Structure - Traditional vs Matrixed

    [20:29] On the left here, are some various organizational models — I'll leave my email address here at the end and anyone that wants this presentation, I'll send it to you — you got this classic Amazon hierarchy. And you’re thinking to yourself, ‘Really, does this matter? I just got funding?’ Yes, it does because if you end up with 17 Vice Presidents because you gave the title away, what are you going to do afterward? How are you going to organize this? I'm normally on the cleanup side of this. In my role, in the consulting role, head of HR, I usually get there a little bit later and I'm like, if only someone had had a time machine to go back and say, "think about this first".

    [21:06] Google's got this interesting nodes and divisions but they can all talk to each other which is kind of cool.

    [21:14] Facebook is definitely a node-oriented culture.

    [21:18] Microsoft, I don't know if it's still like this, but this is the common joke. Anyone work for Microsoft? Oh (laughing), is it still like that (side conversation w/ audience member of Microsoft)? So, for those of you watching, a slight acknowledgement that it may have once been like that a little bit. Different groups siloed off which is very difficult when you think about it. A collaborative culture and I understand that's still a little true.

    [21:44] Apple, this is kind of what happens, very sad with the change of leadership at Apple but in some ways this is entrepreneurial culture that never really outgrew the founder. I see a lot of this and it's something that if you don't deal with it, you end up with the Apple structure and you're incredibly dependent on one or two or three people. Doesn't scale. My job here today is to talk about Scaling.

    [22:12] Oracle, just kind of fun - Legal department and Engineers. Whether that's true or not, I haven't actually been able to validate it.


    A New Structure - Scaling through Workforce Development

    [22:21] More and more, as you get your capital and you get your product working, you're thinking to yourself I need to scale. Does it need to be through employees? We live in a gig economy. How would you structure a particular, or potentially structure, different nodes? Different clusters of people? Different workforce networks? There are all sorts of wonderful people that you can leverage on demand. Think about how you want to approach getting things done through structure.

    [22:54] So our people at Pied Piper, if I was talking to them, I would say, "Be the coach. If you don't do it, who else will?” And that's a big shift for a lot of entrepreneurs.

    [23:07] The best organizations plan early and plan often. They often look at it as, ‘oh, I'm losing productivity. I've stopped for the day. I'm not coding’. You're going to go faster. Stop and take a little bit of time to plan.

    [23:18] Leverage vision, mission and values and what needs to be achieved to attract talent. I think from a talent brand perspective, if you've got that compelling story the best people are going to come to you.

    [23:29] Set clear expectations at the org, squad and individual levels. Again, clear goals.

    [23:34] Define how Talent will be assessed. And honestly, don't get caught up in traditional hierarchies; experiment a little bit.


    Tool 3: Style Matters

    [23:41] So, our friends at Pied Piper are learning. So then I wanted to talk to them about style, and I don't mean this type of style.

    [23:50] There's this wonderful book, it's the third resource I would like to give to you, pay attention to this. Multipliers, has anyone read this by Liz Wiseman? Concept is very straightforward. Multipliers people who motivate you, empower you and are problem solvers. Diminishers are idea killers, energy zappers and depleters. Who knows the multiplier that you work with? Everybody knows someone. Who knows a depleter? Yeah. There are six profiles, again, I've got 40 minutes to talk to you about it, so I'm just going to give you the overview. It's the book you really should spend some time looking at.

    [24:31] On the good side, Multipliers get two times the capability on the people they work with. Talent Magnets makes your recruiting easier. The Liberators who create intensity that require your best thinking. Coaches who extend challenges. Debate Makers who debate before deciding. Investors instill ownership and accountability. Anyone who's had a good mentor over the years, and there was some discussion over mentors, probably was from the Multipliers side. They just couldn't help themselves. They enjoy that mentorship role and by each one of you to think about, maybe you want to do the same.

    [25:05] On the diminishing side, and after you see this each of you is going to think about somebody; do not call out any names. I don't want to know. There are Empire Builders who hoard and under use talent. Tyrants who create anxiety. Know-it-Alls who tell people what to do. Decision Makers who make isolated decisions. And the Micro Manager, my favourite, who loves a Micro Manager? Who take over control. They get less than half of people's capability just by their style. So my question to this group is, from the Diminishers who raised their hand a moment ago saying, "yeah, I know a Diminisher", now think of prior places that you worked at, are you still friends with those Diminishers? You're now in charge of hiring teams — you're in charge of building product, you're definitely in charge of building capital — but you're in charge of building teams. Why would you stack the deck with anyone who looks like a Diminisher? And so style matters.

    [26:19] I invite each of you to choose to be a Multiplier.

    [26:24] Fill your organization with as many Multipliers as you can find. Well beyond their core skills. How they work?

    [26:33] I want you to fill your hiring panels [with as] many Multipliers as you can because if you've ever gone into an interview and you sat down and you looked across at some disengaged person who is a Diminisher, your like ‘I don't want to work here. I don't want to be here at all’. You can see those people a mile away. The sad part too is, you have to manage the Diminishers out of the organization. They drive away the Multipliers. Simple concept. The book is amazing. It's a light read, it takes just a little while.

    [26:57] Again, as you're building your squad, future-proofing it and thinking about who do I want on this boat with me - Multipliers hands down, 10 times out of 10. How do you find them? It's interesting. If we go back a slide, Talent Magnets who attract and optimize talent. When I'm hiring executives into an organizations there are some executives who just bring their entire names with them. It's fantastic, find those people. You'll hire 10 more.


    Tool #4: Engagement

    [27:26] Alright, tool number 4. This is kind of a ridiculous scene - unicorns, The Valley. Make engagement more than money from day 1. More importantly, you have to decide, what you mean by engagement.


    Defining A Culture of Achievement vs Entitlement

    [27:45] This is a wonderful model, it's the fourth tool I would like to leave you with today. On the left, it's by a company called BlessingWhite, it's a consulting company. The concept is straightforward. I was having a conversation offline a little bit earlier talking through it and yet, we don't do it naturally. The concept is straightforward.

    [28:08] Under the Engagement X, how people are actually motivated; they are not motivated by burritos, they are not motivated by pool tables, they are not motivated by hammocks, they are not motivated by bicycles. They are not motivated by any of those things on the right. Those are nice but that's not what motivates them.

    [28:24] What motivates them is what's on the left. What does the company need? Vision, values, goals and finding the absolute crossroads of what that individual is looking for. Individual needs. So if you can find the crossroads of employee success - individual success - what they are looking for and company interest. You've got highly-engaged people. If you've got highly-engaged multipliers, look out, you only need one or two of those.

    [28:57] I use this model with basically all of my clients and all the organizations I talk to. The managers as they start to talk to their employees, start to realize, ‘Gosh, I didn't realize I had to pay attention to what people want themselves. I thought I could just tell them what to do and give them goals and they would do that’. And so, it's absolutely crystally clear important that you lay this down at as the architect of your team that this is how you're going to define engagement as a culture of achievement and not a culture of entitlement. I've got some nodding over there. Actually, what's interesting for the cameras at home, there's a lot of people in the audience nodding and I'm like, ‘yeah, you're all thinking about people you know and you're all thinking about companies you work with’. I speak the truth.

    [29:50] On the disengaged side, worth spending a few more minutes. The Almost Engaged are people who are like, ‘Yeah, you're getting me to do things I need to do and it's kind of in line with what I'm doing. Maybe, I'd like a break’. The Honeymooners & Hamsters are essentially too brand new to know any better. The Crash & Burners are unfortunately, people who are not really getting any individual sanctification at all but they're just doing to same job over and over again. I think we've had a discussion a lot today about finding what it is that you want to do and then do it really well. The Crash & Burners tend to be people are really struggling with ‘I don't like what I'm doing, I'm on a day job and I'm just doing it because I kind of have to do it’. As a leader, it might be nice having those people there but they're only half valuable. Then the ultimate, terrible quadrant to be in, The Disengaged. You're really not doing much for the company and you're really not very happy either. Hopefully, none of you are in this type of role and if you are, I encourage you to reset, look at something new to do. As a leader this is terrible, you don't want 30 of those people your bus. Se set a culture of achievement right from day 1.

    [31:03] Make engagement way more than dollars. It's interesting, you think about like all top performers I've ever worked with anytime at all, they tend to prefer achievement over entitlement cultures. Right? You like working with teams who are awesome, that inspire you, where you're like, ‘wow, I really learned something from you today’. When you're an employee, you're like, ‘OK, that's great’ but as an architect of the organization and as an entrepreneur, you're the only who's responsible for putting these people on the team. Way more then job description, define that deal upfront.

    [31:46] Again, I've been in a few too many orgs that start to try to replicate the Google success are like, ‘I know, I'm going to give them all free lunch. That will make me a Google’. That's not true. You've got to actually get deeper than that and define the deal. What are you actually going to get out of my organization?

    [32:05] Some of our teams today are so values, mission and purpose-driven, like you want to help them. You want to part of what they're doing. Right? They've got a natural hook. Sometimes you're in organizations where you don't have a natural hook and you've got to look for it a little bit more. The point is defined that deal, work on the brand, offer it up, then deliver it.


    Don’t Force the Fit

    [32:28] I've had to do this a few times myself, I'm guilty of this, don't force the fit. If someone is not going to make it into the ‘you're what I need as an organization’ and their interests are so outside of what you need to achieve, there is very little you can do to bend that person to be successful in your organization. Again, I go back to my example where the CEO was looking at me saying, "I hate all these people, I don't want to work with any of them anymore". And when I went through it person by person, it was, "You shouldn't have hired them. You force fit that. That person was a rockstar in their field and not even remotely interested in what you're trying to do in your organization. He was like, "I know but I couldn't find anybody else!" "Yeah but he doesn't want to work for you but you hired him anyways". So, it's your job. It's your job to do that. It's the founding team's job to do that.


    Embrace a Coaching Approach

    [33:21] This is the toughest part. While I'm talking about hiring today and I'm mostly talking about scaling your team for growth, part of that is you do have to manage The Disengaged up or out. And we all slipped into the disengaged mode from time to time. We all get there. We have a bad couple of months. I'm not saying, screw up once and you're out of here. What I'm actually saying is you need to embrace a coaching mindset and really care and cultivate the health of your organization. If it's not a good fit for the organization, if the person is just not in, if their interests are not aligned with what you're trying to achieve, it's time to move on. And then call your HR person and figure out how to do it in a caring way.

    [34:07] And of course, my favourite, and I've seen this too many time on Engineering hiring panels, never put The Disengaged on a hiring panel. Never, ever, ever. How many interviews have you been to where you've looked across and you're like, "that person don't want to be here either". Never happened to any of you, right? Why would I put people in front of other people and try to get them attract to my org if they're not engaged.


    Tool 5: Screen for the Team

    [34:33] Tool 5, the last of my tools for the day, screen for team. There's a wonderful fifth resource called, The Five Dysfunctions of A Team. It is absolutely mandatory reading for anyone, any entrepreneur who's starting out and building an organization. It's this idea of, you've added people to the organization, you've got your goals clarified, you know what the results should look like but, if you don't have trust, you don't know what to fight and don't have commitment, you don't have a team and you're not going to get your things done. You actually need to tend to this. You have to think about, before I hire that next person into my team, what is the impact they're going to have on the mix that I have? What holes do I have on this team already? How would I be able to maybe increase trust? Or avoid more conflict or solve more conflict by adding different voices to my table? It's your job when you're recruiting.

    [35:35] So for my friends at Pied Piper, I would tell them what's missing? And of course, I look at this group and right away I think to myself, that's five guys.There's needs to be a lot more diversity on this team to be successful. Or to work through conflict and to build trust, I think diverse teams are by far, strong teams so I enjoy picking on this example. Fix the dysfunction, the talent can see it. Diverse over homogeneity. Who you hire affects everything.

    [36:09] Down to my last couple minutes. So I'm going to go back to my fun question. What do Mark, Elon, Ginni and Rick's job have in common? And what does it have to do with hiring? Anyone got the answer? Any figured out what I'm doing?


    Building A Great Team Through Leadership

    [36:29] Leadership. It's the best job. It comes in all sorts of formats. It's my job, I love doing it. These are people who will choose to attract and inspire people around them to do amazing things through people. And the biggest things I can leave everyone with - any one of the teams here, in your day-to-day jobs, anyone you're working with - whenever you become a leader and as soon as you embrace being a leader, building your team to scale starts with you taking the same leadership lead before you write that job description. So, when everyone says, ‘Derek, how do you build a team to scale?’, I walk them through these Five Tools but it all starts with you have to decide you want to be an awesome leader. It is part of your job and the day you become an entrepreneur, you start to spend more and more time on this than you do on the product you built or on the capital you raised.

    [37:23] So, I leave you with it's your squad so take the leadership leap. I'll leave you with these five tools to scale your team if anyone was writing them down. I'll leave my email address up in a moment.

    The Life Cycle [model] from Adizes. Know where you are in the Life Cycle.

    Scaling Up starts with why, what and who?

    Style of the team, Multipliers.

    Engagement, Leadership X. It's a 7 mins video on YouTube. It's a wonderful sort of handwriting story line. It is super entertaining and you'll learn a lot about how to keep people in the apex of the engagement zone. Five Dysfunctions of A Team, it is mandatory reading for an entrepreneur.

    [38:06] That's all I've got. I invite everyone to take to leadership leap and that's how you scale your team. My email, my address if you have any questions, if you've like a copy of the presentation, by all means, I'll send it to you. I love building teams. It's been great to be here today.

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