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It might tell you that you need better sales training or to hone your key selling messages.
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You’re also learning directly about the skills of your sales staff by observing them in action. By going on sales calls you pick up directly the feedback of what customers want and also what they’re telling you about competition. As a CEO you never stop needing to go on sales calls (or to work the phones in telesales or customer support) and ceasing to do this as your company grows because you’re focusing on investors, recruiting, PR or whatever is a mistake. Think of it kind of like running a national chain of restaurants and occasionally stopping in to wait tables to have a more intuitive sense for your processes, work conditions and the quality of your products.Īn obvious example would be in sales. As a leader you need to have an intuitive sense of your business that can only be formed by hearing directly from staff in every corner of your businesses. It’s not just a Reaganesque “ trust, but verify” issue although that’s certainly part of it. You need to “dip” down into your organization and learn directly from employees at all levels and with all skills. But as a CEO you can’t rely solely on this information. You’ll get sales information from your VP of Sales, marketing information from your VP Marketing, tech information from your CTO and so on.
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Dipping: As a decision maker you rely on information being passed to you by the people who report to you. I see two common mistakes in companies (not just in startups, in fact).ġ. This applies to both founders and to VC’s that work with them.
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And having sold two companies I worked inside much larger companies that acquired us and observed even bigger company structures.Īs your organization grows and you hire senior staff where you are no longer managing every employee directly the issue of how to manage people that are not your “direct” reports arises. I never built a Google-sized business but I did build an organization from scratch that grew to 120 employees in 5 countries before we sold it. A good early-stage CEO needs to be accessible, to be accountable for producing results and should be establishing the cultural norms of the company through direct leadership at all levels.īut issues do arise as your company grows. I’m not a big believer in too much hierarchy. We all like to think of startups as “non hierarchic” organizations and to some extent that should be true.