One point to note is that working with a big company like IBM can also pose high risks. Judging on their PowerPoint slides from Exhibit 5, not much thought was put into their presentations (p. They were extremely lucky to land the $100K IBM deal considering their software prototype presentation with IBM was not well prepared (pp. When it came down to developing their actual product, his team did not have the knowledge, so they relied on outsourcing their software development to Ron Hardin from Flex Solutions. The case mentions, that he was looking to find “the best athletes by hiring the “best people.” (p. On the other hand, his team was lacking experience in the industry. Triandiflou was aware that he needed broad range of skills. Ockham’s founding team was inexperienced. If Ockham does not bring together the right people, it may risk falling apart and thus jeopardizing the growth of the company. Triandiflou had issues with having two members from one venture firm because he wanted to keep his board small. (2) Building the company’s board of directors was also a challenge. Though Ockham Technologies assembled its founding team, numerous problems arose: (1) there was “friction” between co-founders Triandiflou and Meisenheimer as they shared different prospective on company’s control issue leading one to make decisions without the involvement of the other (p 12). James Triandiflou’s faced problems with assembling his executive team. However, Ockham continues to face operational problems from assembling its human recourses to establishing outsourcing relationships for its on-going success. The case ends as James Triandiflou, the founder of Ockham Technologies, describes the company’s early growth in launching an enormous deal with IBM and triumph over financing their business operations because it received financing offers from successful investors and venture capital firms. AttorneyĪt early stages, founders are stretched too farįounding team may lack relevant capabilitiesĪdds flexibility when when a company is still experimenting with its business model Negative: May lack a level of control for critical function Social People whose interests may not be aligned with the company’s, or to whom the company already has access. Type of Representation Needed – The needed skillsĪssess management team’s strengths and weaknesses with regard to industry experience, financial expertise, marketing experience, start-up experience, and technical know-how, maybe international experience. What is the company’s access to financing? Should inventory the resource needs of the company before you begin recruiting the board: What is the competitive advantage of the company? What will be the demands on the company and the likely changes in the next few years? How much technical expertise is needed to understand the company’s practices? What role does marketing play? R&D? Customer service? Need functional skills needed to keep the business running smoothly and to bring business to next level of growth Need right mix of personalities Usually, no more than 2 insiders on the board. Small enough to be accountable and to act as a deliberate body, but large enough to carry out the necessary responsibilities. The Benefits of Having an Independent Boardīrings perspective and experience, and a set of complementary skills for the CEO Recognize the need for long-term planning and assist in long-range strategies Can provide a framework for control and discipline and give CEO someone to answer to Can be challenging and objective critics, serving as an internal check for CEO Can be mentor or coach Potential problem – split equity very early May have to reserve ownership for future founders. What contributions are founders expected to make in the future? What opportunity costs will each founder incur? What cash, ideas, & property contributed? Potential Problem – Ockham founders split only based on amount of initial equity Other criteria to use: Tensions continued to grow, and worsened after Ockham hired a COO Mike leftĬonsiderations in Allocating Initial Ownership Raised first round from VCs (Noro-Moseley & Monarch), with each getting one seat on the board Added a 5th, very experienced industry personĪlso hired Gus as internal development team leader
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