Brad Wardell's views about technology, politics, religion, world affairs, and all sorts of politically incorrect topics.
Putting together a good management team is key as your company grows
Published on December 17, 2003 By Draginol In Philosophy

One of the things I've come to realize over the years is that our company's management team is incomplete. Much of Stardock's success can be attributed to the incredible talent of our company's developers and management.  But as we've grown, particularly in the past year, holes have appeared. 

For one thing, when you're small, having a management team full of specialists is good. I'm the only generalist in the management team. That works fine when you're a start-up.  But as you get bigger you need more generalists. Bigger companies need more people who know how to code, know how to market, know technology, know business, and know how to deal with other people diplomatically normally or ruthlessly when necessary.

What our company is missing, in other words, is a Vice President.  But you can't easily just hire a VP. I have friends who are well suited to the position but I know better than to hire friends into the company at this point. I have two friends who fit the mold perfectly, Phil and Kirk. So I say to myself, I need people like Phil and Kirk who aren't Phil and Kirk. But that's a real challenge.

I get resumes on my desk on a regular basis from sales managers, executives from large companies, chief technologists, etc.  None of them fit the critiera because they either:

  • Are too business-oriented.  In a tech company, you have to know coding or else the developers will walk all over you. Developers respect other developers. I'm not a great coder but my coding credentials are strong enough that I have their respect. I also know the lingo and know how to evaluate different technologies. Too many would-be VPs just don't know technology well enough or at least as well as they think they do.
  • Are too sales-oriented.  We already have an outstanding sales manager.
  • Could fit the criteria but want huge HUGE salaries (i.e. >$200,000 annually) when in reality we aren't prepared to pay even half that in salary but have stock options.

This has really bitten me in the last few months as I've had to increasingly travel to companies to close deals that really are more suited to a VP.  One trip was to work out an agreement with a major games publisher. A couple weeks later I was off to the other coast to put together a project agreement on a major Object Desktop related project.  Two very different things both requiring me to fly out there.  That's time I'm not helping steer the company (and in 4th quarter, our busiest quarter).

Most entrepreneurs come in pairs or in threes.  That's how they avoid this. A group of friends get together and start a company together.  Stardock was founded just by me. And I'm an only child. And now it's too late to bring in friends to be principles because we're big enough to the point where there is definitely a hierarchy and while one of my closest friends does work at the office, we've known each other for decades now (we met when I started high school) so the company hasn't affected that and I'm not really in an authority position relative to him so it works out. A VP, on the other hand, is someone who would be in the direct chain of command and hence bringing in a friend at this point for that position wouldn't fly.

And so the search continues...

 


Comments
on Dec 17, 2003
I kind of know what you're going through.

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A little background information.

My partner was recently diagnosed with type 2 diabetes and affording his test supplies is rather difficult considering our current financial situation. So we looked into various organizations in our state seeking help but were confronted with the realization that, unless you have private insurance or are on Medicare, there isn't much help in the way of diabetes. So I started toying with the idea of creating a non-profit organization to help people that can't afford diabetic testing supplies.

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During the process of planning everything I realized that financially supporting the venture wasn't my only problem. I would have to recruit people to work with me and/or under me depending on how the organization was set up. I know several people that suit the positions I need to fill but I wouldn't feel comfortable with it. These are people I've known for a long time and it would feel awkward giving them directives to follow in a professional capacity. The idea of family is out as well, I've learned from previous experiences that one never mixes family with business. Yet I don't want to recruit people that I either don't know or may be ill qualified. So I'm left with the question, "Then who?"

I still haven’t been able to answer that question. I think I'll tackle the finance issue first.

~Melchiah
on Dec 17, 2003
If I were me 5 years from now I'd be perfect!
on Dec 19, 2003
That's it, Draginol! You've doomed yourself! "Good Management Teams" phaugh! Oh sure, the next thing you know, you're going to start lobbying for /competent/ people in management too, aren't you!

Such thoughts upset the finely established social order of the world! There's going to be chaos and disorder if this keeps up!