Blog: A Staff That Stays Together Cannot Grow Together…At The Same Rate!!

I got a call from an entrepreneur that I worked with in Southern California saying he had a real problem. The problem is, one of the staff was is not contributing is much as he should. The individual was working less hours and not completing tasks but the real concern was, the gentleman had ownership. Fortunately, he was into his stock option with only one year vested. I did suggest that the entrepreneur contact his lawyer to research the agreement to see if it could lessen the hurt by terminating the individual.

When working with student entrepreneurs and incubator entrepreneurs, I find a tendency for them to start out with the staff that in many cases is planning to stay together. Much of my energy and helping these teams also is directed to the running of the company to grow, after the validation period and early money is completed.

All my books are directed to helping this to happen. It also seems to be a given when I see presentations seeking angel investments, where it’s implied the team will stay together to build a business, even in revenue multiples that takes them to $40 or $50 million.

This blog is dedicated to Law #3 in my guide of The Laws of Management Physics book. Strangely enough, on Amazon, there is only one book left. I wish I knew who would buy these books but that information is not available.

In any case I want to pick out law number 3. It’s called A Staff That Stays Together Cannot Grow Together…At The Same Rate!! The point I’m trying to make is, a staff that stays together can only grow from experience, but with different education, personalities, motivations, and reactions to change, the rate of growth will vary for each member. There are Numerous changes in the needs for a company with robust growth.

Many companies are restricted in their growth rate because they are reluctant to replace staff. However, there will always be a weak link in the staff chain that should be addressed. Of course, the first place a president should look to his own position and his ability to keep up. I believe. everyone should have a mentor to supplement “on the job experience.”

Growth requires changing the culture of a company. Most likely, a staff that stays together will perpetuate the existing culture. This makes it necessary to bring personnel in from the outside.

The first step in binding the staff together involves giving out stock. I have run into situations at the student level, for some of the team are going off to an unrelated job, the day after graduation. I have one case with the marketing person was given 8 percent of the company, and by the time graduation came around the person was completely uninterested in going forward. It was very difficult to try to get that stock back.

So it’s naïve to believe that the initial staff will have the wherewithal to help this company grow to meet their financial projections, and return a reasonable investment for the investors and the team.