Science or Art: Hiring Great People
Over the last 12 years Cleantech, like Biotech and AI, has moved from proof of principle and concept, commercialisation and now industrialisation, with funding spanning seed, risk and growth capital. All of these events and changes will stress an organisation and requires constant vigilance around people capability and bandwidth. It is important to recognise that the team that launches the company is generally not the one that is in place at exit. This does not mean creating a hire and fire organisation; rather one that adapts its organisation to meet the business cycle. Here are some highlights that may help in building a successful organisation, starting with the CEO.
Recognise that leadership and management are different but complementary. I am not referring to charisma or strong personality. Management is about coping with complexity. Leadership, by contrast, is about coping with change. Typically, change pinch points occur during the transition from concept to commercialisation and then industrialisation. So, constantly overhaul the organisation and recognise when it is no longer fit for purpose.
Challenge your recruitment/search partner to identify candidates that understand your current or proposed business model. Seek out talent from adjacent markets with transferable skills and avoid churning the obvious talent pool. Too often have I been asked to hire candidates that have experience of similar technology when experience of similar business models will enhance an organisation.
Build a functional board containing seasoned Non-Executive Directors. Recognise that institutional investors are not always the most equipped to create value at the portfolio level. Strong independently-minded boards win out and dysfunctional boards create dysfunctional executive teams. Undertake an annual appraisal of board performance.
Ensure that your business leader works on the business and not simply in the business. I have seen talented CEOs that have been too immersed in executional activities and insufficient time and energy is spent focused on upgrading the talent capability and organisational design.
Before instructing on a new hire process, ruthlessly quantify the critical factors for success and avoid a large “shopping list” that encompasses all the senior requirements of the business. Hire the CEO to meet the critical factors for business success and then balance capability across the leadership team.
Define the roadmap in the beginning and have this communicated to potential candidates. If it is a seven or three step process is not entirely relevant. More importantly lay out the hiring steps, the key stakeholders involved and the anticipated timescale. Importantly ensure that there is clear communication at the onset and then adhere to it.
Commit your search partners to operate at pace. Agility and speed of execution does not necessarily come at the expense of quality. Be clear and state when you want a short list as I can guarantee that this will focus time and commitment.
*Written by Ian Jenkins, Co-Founder & Director of Ruston McQueen.
