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A framework for growth in high-technology companies A white paper presented by The Six

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A FRAMEWORK FOR GROWTH IN HIGH-TECHNOLOGY COMPANIES


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ABSTRACT
In a highly competitive global arena such as high technology, companies will benefit from efficient structures and processes that predispose them to achieve high growth curves. The Six, a group of senior professionals with decades of experience in high technology areas such as marketing, sales, product management, finance, and communications, has drafted its common vision of an ideal management framework and infrastructure that can support long-term growth. This vision is intended to assist two distinct levels within companies: the President (to help them build and orchestrate their team), and the practitioners in each distinct area (to help them see how their role dovetails with others for maximum results). Tools are provided to assist in senior management team orchestration, including an ideal structure for startups that shows basic core functions, as well as senior functions that would emerge as the company grows. Job descriptions for each function, a description of interactions between them, and a glossary of terms are also provided. The models assume a closely aligned product family that shares a common sales force, and a common customer. When the company deals with multiple different channels or end customers, the formation of business units is advised to focus more clearly on each distinct markets needs. In these cases, each business unit may need its own management team. The models prescribed herein do not necessarily support emerging .com business models. In all businesses whose processes are highly integrated with the Internet, or whose revenues depend to a significant extent on transactions completed over the Internet, it is strongly recommended to have a CIO on the management team. The CIOs role is to act on behalf of the management team in the specification, design, purchase, installation, staffing, training, management, and support of the firms IT

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 1

A framework for growth in high-technology companies A white paper presented by The Six

(information technology) infrastructure. It is also their role to spot opportunities, mitigate problems, protect the company from potential system failure or dysfuntion, and recommend ways to optimize the impact of IT systems on the companys bottom line (see page 50 for .com company management rollout framework).

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 2

A framework for growth in high-technology companies A white paper presented by The Six

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A FRAMEWORK FOR GROWTH


IN HIGH TECHNOLOGY COMPANIES:

INTRODUCTORY PREMISE
................................................................................................................................... Objective: Assist high technology companies to build stronger management structures, ultimately to allow them to undertake more effective sales and marketing activities Write and broadly distribute a white paper that defines distinct roles, responsibilities, boundaries, and interactions among high tech management teams, and provides a roadmap for growth Our paper covers only the most important, top-line indicators, and is not intended to be exhaustive or comprehensive. It is meant to give guidance in terms of setting up, managing, and optimizing the senior management team in a high tech environment. While there are many different approaches to corporate structures and many different software, hardware, and services environments we present a framework that our group feels most effectively supports superior sales and marketing performance The audience for our paper includes Presidents, CEOs, and senior sales, marketing, communications, human resources, finance, and product development staff. a description of the basic core management team, including the President, VP R&D/product development, VP Sales, and the VP Human Resources & Administration an evolution plan for the management team, including the emergence of the VP Marketing, VP Product Marketing, VP Communications, and Chief Financial Officer

How:

Extent:

Audience:

Content:

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 3

A framework for growth in high-technology companies A white paper presented by The Six

Delivery:

recommended management team interactions between sales, marketing, R&D/product development, human resources, communications, finance, and the President guidance for hiring senior team members (job description, preferred experience, role in overall team, how to know if they are performing well, what they need, etc.) glossary of terms

The paper will be posted on OCRIs and Industry Canadas Strategis websites, with softcopies available via eMail at moore@ignitionpt.com We will also seek adoption of these guidelines within educational institutions, such as colleges, universities (both in business and engineering courses) and in federal government entrepreneurship or tech transfer offices

Note:

While our paper shows the title VP for all second-tier (The President is first-tier) management functions, the full title is not a prerequisite for effectiveness. Our intent was to show that an individual with dedicated responsibility for the distinct function is needed at senior management level. This presumes the establishment of a distinct management team, which The Six considers a crucial element of success. Its role is described in this paper. The models assume a closely aligned product family that shares a common sales force, and a common customer. When the products, channels or end customers diverge, the formation of business units may be advised to focus more clearly on each distinct markets needs. In these cases, each business unit may need its own management team. The companys structural and operational models may, in fact, alter as the company grows.

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 4

A framework for growth in high-technology companies A white paper presented by The Six

THE SIX
STAGE I (BASIC) CORE MANAGEMENT TEAM
(FOR STARTUP HIGH TECHNOLOGY COMPANIES)
President VP VP Sales R&D Generate revenues Develop the product line Lead generation, qualification, and management Customer relationships and information feed Field application engineer team and technical support Trade shows and sales fulfillment tools development Key customers and channel programs Product development

Presidents other roles Build employee and customer bases, and manage image Manage the companys image and reputation Public relations Media relations

VP HR & Administration Manage the companys employees and administration Recruitment programs

Launch marketing initiatives Collect market needs analysis and direct the development of the product line Strategic partnering, mergers or acquisitions Financial and legal matters Key relationships with banks, lawyers, underwriters, accounting firms Investor relations

Development team and infrastructure Pricing, from development cost point of view Invent new answers to customer and market needs Product manufacturing

Human resources and employee relations Pay and benefits

Health and safety, crisis plan, and evacuation programs Facilities management

Pricing, from sellability point of view

Supplier management

Direct sales team, and Product documentation keep them informed Competitive information on products, services, sales tactics and reasons for wins/losses Performance tracking of channels Customer support Administration and manufacturing

Information (IS), telephones, and computer infrastructure Administration

The President usually launches the company by performing all roles looking for early market input, beginning customer conversations, and targeting the technology that will form the basis for the companys products or services. They interest key investors, customers, and media in the product or service. After the VP R&D is in place to develop the product, the VP Sales is the next hire for the technology-based company, focusing on building the customer and revenue bases, and freeing the President up to manage other aspects of growth, including marketing or investor programs. The President will hire external

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A framework for growth in high-technology companies A white paper presented by The Six

resources to perform senior accounting functions until a CFO is needed. (Deloitte & Touche has provided an overview of the types of counsel a President might seek from an external accounting firm it is appended at the end of this document.)

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A framework for growth in high-technology companies A white paper presented by The Six

THE SIX
STAGE II CORE MANAGEMENT TEAM
(FOR HIGH TECHNOLOGY COMPANIES)
President VP Sales Generate revenues

Presidents other roles Build employee and customer bases, and manage image

Manage the companys image and reputation

Public relations

Strategic partnering, mergers or acquisitions Key relationships with banks, lawyers, underwriters, accounting firms Financial and legal matters Investor relations

VP Marketing and Communications Define the product, and create market awareness, demand and preference Collect market needs analysis and direct the development of the product line Benchmark analysis of positive/negative image of company Advertising and media relations programs Collateral materials development, including website and product packaging Trade shows and special events Lead generation and qualification

VP R&D Develop the product line

VP HR & Administration Manage the companys employees and administration

Customer relationships and information feed

Product and service development

Recruitment programs

Lead management

Development team and infrastructure

Human resources and employee relations Pay and benefits

Field application engineer team and technical support Trade shows and sales fulfillment tools development

Pricing, from development cost point of view Invent new answers to customer and market needs Product manufacturing Supplier management

Health and safety, crisis, and evacuation programs Facilities management Information (IS), telephones, and computer infrastructure

Key customers and channel programs Pricing, from sellability point of view Direct sales team, and keep them informed Competitive information on products, services,

Key alliances and relationships with media and industry analysts Pricing, from positioning and marketability points

Product documentation

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A framework for growth in high-technology companies A white paper presented by The Six

of view

Competitive information on positioning and share Incentive programs (with VP Sales) Customer support Administration and manufacturing The VP marketing-communications will handle early product marketing and communications activity, but will quickly be overcome with too many top-level responsibilities. While it is important to provide staff to assist the marketing effort, growth should be matched with the emergence of two new positions: communications, and product marketing.

sales tactics and reasons for wins/losses Performance tracking of channels

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 8

A framework for growth in high-technology companies A white paper presented by The Six

THE SIX
STAGE III CORE MANAGEMENT TEAM
(FOR HIGH TECHNOLOGY COMPANIES WITH SALES OF $100M/YR +, OR WHEN APPROACHING AN INITIAL PUBLIC OFFERING)
President VP R&D Develop the product line

VP Sales Generate revenues

Customer relationships and information feed

VP Marketing Programs Create market awareness, demand and preference Advertising and trade media relations programs

VP Product Marketing Direct the development of the product line Collect market needs analysis and direct the development of the product line Pricing, from positioning and marketability points of view Incentive programs (with VPs of sales and marketing) Feed information to sales staff and channels

VP Communications Manage the companys image and information Benchmark analysis of positive/negative image of company

VP Human Resources Manage the companys employee base

Product development

Recruitment programs

Chief Financial Officer Manage assets, investors, and finances Financial matters

Lead management

Field application engineer team and technical support Trade shows and sales fulfillment tools development Key customers and channel programs

Collateral materials development, including website Lead generation and qualification

Development team and infrastructure

Employee communications (with CFO)

Human resources and employee relations Pay and benefits

Legal matters

Pricing, from development cost point of view

Public and business media relations

Facilities management

Trade shows and special industry or customer events Key relationships in trade media, and industry analysts Incentive

Technical support

Issues identification and environmental analysis

Health and safety, crisis, and evacuation programs

Competitive information on position and share

Product manufacturing

Crisis plan

Information (IS), telephone, and computer infrastructure Admin infrastructure

Pricing, from

Strategic

Supplier

Spokesperson

Investor

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A framework for growth in high-technology companies A white paper presented by The Six

sellability point of view

programs (with VP Sales and VP Product Marketing)

Direct sales team, and keep them informed

partnering that increases the products usability and sellability Direct product management team

management

program, training and informing

relations

Product documentatio n

Key relationships in public and business media

Key relationships with banks, lawyers, underwriters, accounting firms

Get street information on products, services, sales tactics and reasons for wins/losses Incentive programs (with VPs marketing and product marketing)

Create tools for salesforce, such as demos, presentations, and objection handling

Invent new answers to customer and market needs

Information and special event support to investor community (with CFO)

Customer support Administration and manufacturing The VP marketing and communications can handle early product marketing if there is an indirect channel structure in place. If, instead, direct sales channels are in place, a VP product marketing will need to emerge to manage the feeding of productrelated selling tools and information to the sales force. Think of the VP Product Marketing as an inbound market information collector, and the VP Marketing Programs as an outbound product information disseminator. Various factors determine the emergence point of the VP Product Marketing, including number of staff, company revenue levels, number of products, and size of channels, however, once a company reaches about $100M in annual sales, a VP product marketing is needed. This is also the right time to establish VP-level communications and Chief Financial Officer positions, as noted in the chart above. If an IPO is being considered, these two position are a must, to optimally manage investor issues. The CFO should be in place 12-24 months in advance of the IPO initiation, to establish quarterly reporting processes and historical performance results, and to manage investor issues downstream. Note that the VP Marketing programs maintains responsibility for communications with trade media and industry analysts, while the VP Communications assumes responsibility for employee, investor, and business/public media.

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 10

A framework for growth in high-technology companies A white paper presented by The Six

THE SIX
OPTIONAL ADDITIONS TO CORE MANAGEMENT TEAM
VP Competitive Intelligence Gather and report information and intelligence on competitors Work with VPs of sales and marketing to identify key competitors Report findings to management in a concise, actionable format Identify opportunities and threats Recommend actions to capitalize on opportunities Recommend actions to minimize threats VP Manufacturing Direct the manufacturing operations VP IT/MIS Manage the companys information assets VP Customer Support Provide customer training, education and support Field application engineer team VP Strategic Partnerships Manage key relationships that heavily impact the companys success Identify existing key partners

Facilities management

Computing infrastructure

Supply management

Telecommunications infrastructure

Technical support and service programs Consulting

Identify areas of need for partners

Inventory management Storage and warehousing

Data security

Pursue actions required to capitalize on opportunities and minimize threats

Manufacturing personnel: hiring, training, and management Cost reduction and quality assurance programs

Mobile and remote computing, teleworking, and communications requirements Software licensing

Customer training, education programs, and courseware Call Centres

Identify new partner candidates Establish relationships with all partners

Negotiate and monitor partnership agreements Feed information to/from partners

Recommend strategic use of IT resources to create opportunities for the company Software training programs and internal tech support

Internal product training

Environmental and health and safety programs

Quantify benefits achieved through partners

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A framework for growth in high-technology companies A white paper presented by The Six

(positive/negative balance) Note that many other optional senior executives can be added to manage business units, services delivery, geographic territories, and other strategic areas.

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 12

A framework for growth in high-technology companies A white paper presented by The Six

MANAGEMENT TEAM INTERACTIONS


The senior management team is designed to allow optimum efficiency within the organizational structure, to ensure that each vertical silo of responsibility be it sales, marketing, communications, human resources, R&D/product development, or finance operates with its own clear focus and targets. Yet, to properly serve the overall needs of the organization, the senior team must bring together, in one place, the goals and objectives of the organization as a whole. Each team member brings unique opportunities, insights, ideas, and challenges to the team. The management team is expected to be volatile, passionate, and, above all else, constructive. Each team VP must champion their own cause, and must strive collaboratively to find the right balance to assist all other team VPs to achieve their goals. With this polarity and teamwork, the company will get the best results. The Six recommends that the management team be formed; that it be led by the President; and that it meet regularly to review high-level progress against objectives set during the annual planning process (or as stated in the original business plan). The meeting would follow an agenda that included review of stated targets, progress to date, opportunities, obstacles, and assigned actions. This is critical to be able to focus away from day-to-day operations, and to monitor and adjust tactics as needed for success. President needs to: institute and manage the senior management team steer the development and implementation of the 1- and 3-year business plans be aware of all historical aspects of the companys growth and performance with the VP R&D, VP Sales, VP Marketing, VP Communications, VP Human Resources, and CFO lead the effort to secure required financing rounds, in support of the business plan be aware of the status and mood of the investor community with the CFO and VP Communications be aware of what new products, or product advancements, are planned, and release dates, to outwardly promote the initiatives with the VP R&D and VP Marketing or Product Marketing understand competitive market and pricing requirements, and manufacturing conditions, to establish realistic sales targets, and hence revenue projections from market research and the full senior management team be knowledgeable about, and actively involved in, key customer relationships with the VP Sales

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A framework for growth in high-technology companies A white paper presented by The Six

be knowledgeable about, and actively involved in, key media relationships with the VP Communications and VP Marketing be knowledgeable about, and actively involved in, key investor relationships with the CFO be knowledgeable about, and actively involved in, key industry and analyst relationships with the VP Marketing be knowledgeable about, and actively involved in, employee relations with the VP Communications and VP Human Resources be the prime spokesperson for the company, its products, services, successes and failures with the VP Communications and CFO steer what the investor will see in the marketplace, or be told through notices, events, or other mechanisms with the VP Communications and CFO be shown timely financial targets, and tracking against these targets from the CFO be kept informed about upward or downward trending of the markets perceived image and position from the VPs of sales, marketing, and communications, and market research be aware of, and decisively act on, significant needs, opportunities, and problems, as reported or requested by the full team make timely demands for information, if it is not presented, from any or all members of the senior management team be the final word in conflict resolution or in priority arbitration, in conjunction with issues presented by any, or all, members of the senior management team

VP R&D needs to: be aware of customer needs, complaints and requests, and the companys competitive position; and use this information to support new product advancement strategies from the VPs of sales and marketing/product marketing contribute to the development and implementation of the 1- and 3-year business plans with the President help the company capitalize on market opportunities, by managing the development teams size, priorities, timelines, and outputs with the VP Marketing/Product Marketing contribute the technical content in marketing collateral, including the web site with the VP Marketing verify the technical content in communications material with the VPs of marketing and communications be aware of financial pressures and requirements related to product pricing, manufacture, or supply with the CFO

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A framework for growth in high-technology companies A white paper presented by The Six

understand the repercussions of financial reporting, by product line, territory, or other method, tracked against competitor products, to support new product advancement or introduction strategies from the CFO and VP Product Marketing manage early ramp-up of manufacturing operations with the President proactively invent new product offerings that answer demonstrated market needs with the VP Marketing/Product Marketing contribute to the success of the Field Applications Engineers and Technical Support team with the VP Sales identify staffing requirements with the VP HR

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A framework for growth in high-technology companies A white paper presented by The Six

VP Sales needs to: contribute front-line customer and market information to help guide the formation of product advancement strategies, then inform the sales force and customers with the VPs of marketing/product marketing and R&D contribute to the development and implementation of the 1- and 3-year business plans with the President understand pricing requirements, both top-line full market price, and bottom-line lowest-price position, discount terms, etc. from the VP of marketing/product marketing and the CFO realistically understand the products or services strengths and weaknesses, and how to distill and communicate the key selling arguments from the VPs of marketing/product marketing and R&D have good selling tools that can provide multi-faceted arguments for why they should win the bid from the VPs of marketing/product marketing have access to a range of value-added offerings, that can be negotiated instead of price from the VP Product Marketing and the CFO contribute to and know what the customer will see in the marketplace, or be told through ads, trade shows, events, or other mechanisms, so they can capitalize on the knowledge, or be prepared for praise or problems from the VPs of marketing and communications obtain, and report on, timely, actionable financial reporting, by product line, salesperson, territory, or other method, tracked against pre-set targets from the CFO be given qualified leads to act on from the VP Marketing manage the Field Applications engineers and the Technical Support team with support from the VP R&D identify staffing requirements with the VP HR VP Human Resources needs to: contribute to the development of the 1- and 3-year business plans, with a focus on the human resources and organizational plans with the President drive the pay and benefits package, including stock options plan steer what potential employees will see in the marketplace, or be told through notices, events, or other mechanisms with the VP Communications be given a clear budget for recruitment, pay and benefits, and training from the President and the CFO be given the authority, tools and support to take decisive action to find, recruit, hire, motivate, and if needed dismiss employees with the full management team

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A framework for growth in high-technology companies A white paper presented by The Six

be kept informed about upward or downward trending of the markets perceived image and position from the VPs of sales, marketing, product marketing, and communications, and market research reflect employee concerns, attitudes, and needs to the full management team

VP Marketing needs to: understand the companys competitive position and image from market research and the VPs of R&D, sales, and communications contribute to the development and implementation of the 1- and 3-year business plans with the President contribute to, and be aware of, what new products, or product advancements, are planned, and release dates, to develop ads, packaging, and collateral materials, and to inform the channels from the VP R&D realistically understand the products or services strengths and weaknesses, and how to distill and communicate the key selling arguments from the VP R&D and the VP Sales steer the development of the web site, with input from the VP Communications (for media and public relations), the VP Sales (for customers), VP Human Resources (for potential employees), and the CFO (for investors) direct the messaging to the marketplace, reflected in ads, trade shows, events, or other mechanisms with the VP Communications be kept informed about upward or downward trending of the markets perceived image and position from the VPs of sales and communications, and market research be acutely aware of the competitive situation, and any changed competitor tactics with input from all team members identify staffing requirements with the VP HR When the VP Product Marketing is in place, these duties will be transferred. define and direct the development of the product line, as a result of market information, feedback, and formal research mechanisms with the VP R&D and VP Sales be aware of customer and channel complaints and requests, and the companys front-line competitive position, to develop new product advancement strategies from the VP Sales drive the company to capitalize on market opportunities, by guiding the development teams size, priorities, timelines, and outputs with the VP R&D be aware of long-term industry trends and indications, to develop new product advancement strategies from the VPs of sales, R&D, and communications

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A framework for growth in high-technology companies A white paper presented by The Six

understand competitive pricing requirements, to establish a full market price that supports the companys position and image, and contributes to longer-term upward pricing from market research and the CFO develop a range of value-added offerings, that can be negotiated instead of price with the VPs of R&D and sales, and the CFO be shown timely, actionable financial reporting, by product line, territory, or other method, tracked against pre-set targets from the CFO be kept informed about upward or downward trending of the markets perceived image and position from the VPs of sales and communications, and market research be acutely aware of the competitive situation, and any changed competitor tactics with input from all team members

VP Product Marketing needs to: contribute to the development and implementation of the 1- and 3-year business plans with the President define and direct the development of the product line, as a result of market information, feedback, and formal research mechanisms with the VP R&D and VP Sales be aware of customer complaints and requests, to develop new product advancement strategies from the VP Sales create inside selling tools to support product sales, including demos, presentations, objection handling, and competitive analysis with the VP Sales create internal pre-communications programs for new product releases, to guide staff knowledge and prepare them for the market advance with the VPs of sales and communications define product packaging requirements with the VP Marketing programs be aware of long-term industry trends and indications, to develop new product advancement strategies from the VPs of sales, marketing programs, R&D, and communications understand competitive pricing requirements, to establish a full market price that supports the companys position and image, and contributes to longer-term upward pricing from market research and the CFO develop a range of value-added offerings, that can be negotiated instead of price with the VPs of R&D, marketing programs and sales, and the CFO be shown timely, actionable financial reporting, by product line, territory, or other method, tracked against pre-set targets from the CFO

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A framework for growth in high-technology companies A white paper presented by The Six

be kept informed about upward or downward trending of the markets perceived image and position from the VPs of sales, marketing programs, and communications, and market research be acutely aware of the competitive situation, and any changed competitor tactics with input from all team members identify staffing requirements with the VP HR

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A framework for growth in high-technology companies A white paper presented by The Six

CFO needs to: contribute to the development and implementation of the 1- and 3-year business plans with the President be aware of what new products, or product advancements, are planned, and release dates, to ensure financial infrastructure will support the initiatives with the VP R&D contribute to the discussion on product price, to ensure that it supports the companys profit targets with the VPs of sales and product marketing dictate bottom-line lowest-price position, discount terms, etc. with the VP Sales contribute to, and approve, the investor segment of the web site with input from the VP Communications and the VP Marketing programs contribute to the development of a range of value-added offerings, that can be negotiated instead of price with the VPs of R&D, sales, and product marketing steer what the investor will see in the marketplace, or be told through notices, events, or other mechanisms with the VP Communications gather and disseminate comprehensive financial targets, by product line, territory, or other method, to allow tracking against pre-set targets from the President and the full management team be kept informed about upward or downward trending of the markets perceived image and position from the VPs of sales, marketing, product marketing, and communications, and market research be aware of, and decisively act on, needs for financial and/or human resources, or facility needs, as reported or requested by the full team support the President in their efforts to secure required financing manage the companys legal affairs with the President identify staffing requirements with the VP HR VP Communications needs to: contribute to the development and implementation of the 1- and 3-year business plans with the President be aware of what new products, or product advancements, are planned, and release dates, to develop press releases and coverage from the VP Marketing or Product Marketing understand the companys competitive position and image from market research and the VP Marketing or Product Marketing realistically understand the products or services strengths and weaknesses, and how to communicate the key selling arguments from the VP Product Marketing contribute to the development of the web site with the VP Marketing programs

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A framework for growth in high-technology companies A white paper presented by The Six

be aware of the investor communitys attitudes and needs, to provide them with needed, timely information with the CFO be acutely aware of the needs of alliance partners, major channels, and acquisitions, to provide them with needed, timely information and to reflect their individual communications agendas with the President, VP Sales, VP Marketing, VP Product Marketing and CFO contribute to what the customer will see in the marketplace, or be told through ads, trade shows, events, or other mechanisms with the VP Marketing programs review the business plans for the company and distinct units from the President be shown timely, actionable financial reporting, by product line, territory, or other method, tracked against pre-set targets, to be prepared for external performance questions from the CFO obtain information about upward or downward trending of perceived image and position with the VPs of sales, marketing, product marketing, and market research identify staffing requirements with the VP HR

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A framework for growth in high-technology companies A white paper presented by The Six

PRESIDENT: JOB DESCRIPTION


Position: They are hired to: President Manage the company towards profit and growth be the greatest ambassador for the company, both internally and externally (define and promote the companys position, image, brand and character) build confidence and pride, both internally and externally stimulate creativity and positive energy within company ranks, especially among the senior management team seek and secure required funding for the organization increase the perceived and actual worth of the company by direct and indirect actions ensure that key customer, investor, influencer, partnership, alliance, and supplier relationships are acknowledged, managed, and leveraged, and that they are available to support their team members in the strengthening of these key relationships institute and manage the companys senior management team assign responsibility, at senior management level, for sales, marketing, finance, human resources, operations, and product development (including product research) ensure that proper business planning takes place within the company set clear short- and long-term performance objectives and targets for the company as a whole, and individually for sales, marketing, finance, and product development set clear timelines for these objectives and targets set clear budgets and resource allocations for these objectives and targets set clear priorities, and adhere to those priorities ensure that the company provides the tools and resources to make it possible for the team to meet objectives, targets, and timelines

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A framework for growth in high-technology companies A white paper presented by The Six

ensure that the company knows how the market perceives it, and its products or services, so that it can act to strengthen its offering resolve conflicting priorities between team members meet the senior management team monthly to review performance against objectives and targets; reveal obstacles to growth; develop strategies to overcome these obstacles encourage brainstorming and creative approaches to company growth be aware of potential liabilities faced by the company on all fronts, and work with the senior management team to mitigate these report progress to, and ask for advice and input from, the board of directors and CEO, where appropriate, including the establishment of governance frameworks and reporting methods/frequencies monitor employee attitudes, and work to motivate and inspire them to achieve company and personal goals be the primary spokesperson for the organization, and take immediate front-line action to respond to any crisis that involves the company (this requires formal training and an internal crisis plan) ensure that employees are the first to hear good or bad news from or about the company, and prepare them for their responses to third parties (if needed) instill a recognition within the full company of the companys position, image and worth, and the role of employees in advancing that position

What the President needs from the management team: interest and involvement in monthly management team meetings focus on their individual area of responsibility, and its associated objectives and targets commitment to resolving conflicting priorities between team members in the best interest of the company commitment to advancing the companys growth and profitability

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A framework for growth in high-technology companies A white paper presented by The Six

encouragement and counsel in continued leadership of the company a commitment to keep the President informed, in a timely way, of successes or problems

What the management team can expect from the President: establishment and steering of monthly management team meetings clear short- and long-term performance objectives and targets for the company as a whole, and for individual team members strong demand to show progress against these objectives demand for suggestions on mechanisms or actions to respond to opportunities and overcome obstacles clear priorities, and adherence to those priorities strong, clear decisions to resolve conflicting priorities between team members in the best interest of the company strong and active input, good or bad, on activities or suggestions active support for individual efforts concern and interest in company health, image, reputation, revenues, profit, and progress time to discuss concerns, emergencies, and problems availability for involvement in key customer, supplier, partner, investor, or employee programs When you hire your President, look for: strength of character, to allow him or her to take clear, decisive action in steering the company a history of active involvement and success in steering companies from the senior management team strong presence that will provide a good foundation for the ambassadorial role intense interest in the financial status of the company, and in the current positive/negative balance in recent growth, position, image, reputation, investor confidence, and employee morale

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A framework for growth in high-technology companies A white paper presented by The Six

a clear presentation of immediate actions that would be undertaken by the President understanding of, and relationships that support, the companys funding and financing requirements legacy relationships within the companys industry sector

Early warning signs that your President is not being effective: lack of a good business plan lack of, or ineffective, management meetings poor definition of targets or obstacles low visibility, or willingness to be visible, externally or internally, of the President inability to table or resolve conflicts lack of involvement in key relationships poor knowledge of the companys products and/or services no second-tier management structure in place involvement of the President in low-level administrative tasks low awareness of competitive advantages or disadvantages How to motivate your President: keep the President in the loop on major issues, achievements, or problems (dont let them get caught unaware and unprepared for good or bad things) provide an ownership stake (shares) in the company, and a performance bonus structure in pay the management team must provide support to the President through their own energies, ideas, enthusiasm, and recognition of efforts place the President at the forefront of publicity, as the active company spokesperson personally involve the President in key relationships by providing opportunities for them to interact with employees, and with key customers, suppliers, investors, media, and influencers react to the clear targets set by the President, and be prepared to report on them

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A framework for growth in high-technology companies A white paper presented by The Six

be vocal and clear about your support or opposition to their ideas or actions, and be prepared to say why and to suggest an alternate course of action to satisfy the objective

Notes:

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A framework for growth in high-technology companies A white paper presented by The Six

VP R&D: JOB DESCRIPTION


Position: They are hired to: VP R&D (Research and Development) Develop the product support the product development strategy dictated by the VP marketing/Product Marketing establish early manufacturing operations contribute to company knowledge about advances in related or competing technologies in the marketplace, as part of technological due diligence establish and manage key relationships with suppliers that have a bearing on the quality, performance, cost, or availability of the companys products manage component supply issues write the companys short- and long-term research strategy keep the sales, marketing, and communications staff informed about adherence to new product introduction timelines and/or specifications provide resources to assist with technical support programs

What the VP R&D needs from the President: defined research budget defined product development budget involvement in management team meetings involvement in long-term strategy and tactical plan the Presidents interest in the research strategy support for continued research efforts, even if they do not generate short-term cash What the President can expect from the VP R&D: active participation in monthly management team meetings complete responsibility for product design, development, and manufacture product cost optimization management of technical personnel

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A framework for growth in high-technology companies A white paper presented by The Six

dedication to using research budget to develop sellable applications or advances, in reasonable timeframes timely reporting on development progress or obstacles commitment to serve market needs and customer requests collaboration with the VP Marketing/Product Marketing to ensure that market opportunities are met

When you hire your VP R&D, look for: an engineering degree successfully held senior R&D positions in technology companies, preferably in a similar technology area an expression of knowledge about the state of market and technology in your companys technology area a clear understanding of business issues, including an expressed concern for the bottom line clear knowledge of product management and product marketing processes clear knowledge of the distinct roles of sales, marketing, communications, and finance clear vision of how to map a companys product strategy into the development team effort ability to motivate and manage people confidence, and willingness to voice opinions in a constructive manner a team player an indication of their initial action plan, which includes current situation analysis, and first actions Early warning signs that your VP R&D is not being effective: when responding to the product development strategy, the VP R&Ds compliance responses consistently undercommit, without striving to collaborate with the VP Marketing/Product Marketing to find the right balance or discuss potential R&D team scale-ups to meet windows of opportunity lack of understanding of their teams throughput capacity, to prepare for conversations with the VP Marketing/Product Marketing about the product development strategy and timelines

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 28

A framework for growth in high-technology companies A white paper presented by The Six

product strengths and weaknesses are not well understood a situation report, verbal or written, has not been given lack of interest in customer, channel or market feedback on the product the VP R&D argues for a research budget, but does not expect to show anticipated results poor knowledge of the companys products and/or services lack of interaction at management team meetings no solid partnership with sales and marketing

How to motivate your VP R&D: provide opportunities to provide expert commentary on the industrys trends and products, by positioning as a spokesperson to trade editors provide other opportunities to advance technology knowledge among peers directly relate compensation to results they are responsible for, coupled with their impact on the business (i.e. hard work by the development team gave the company an advance leap on product sales, and beat the competition to the win) publicly cite the successes of the development team refer to the VP R&D as the technology expert listen to, and act on, concerns raised give them the tools and resources needed to accomplish the goals they set Notes:

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 29

A framework for growth in high-technology companies A white paper presented by The Six

VP SALES: JOB DESCRIPTION

Position: They are hired to:

VP Sales Deliver revenue to support corporate financial objectives forecast revenue levels and establish targets increase market share and market leadership promote internal and external corporate leadership participate in overall corporate vision create and deliver the channel strategy, including initiating discussions about incentives that will help promote sales establish direct and indirect sales structure to support the channel strategy minimize the cost of sale maximize profitability focus, manage, lead, and motivate the sales force mobilize and orchestrate internal resources for successful product implementations or roll-outs feed market requirements and competitive landscape to marketing and R&D develop, maintain, and advance customer relationships, and ensure customer satisfaction seek and move information from the customers back to the company about product acceptance or rejection, and the reasons why for both seek and move information from the company to the customers about new products, improvements, special offers, etc., to stimulate interest and sales take immediate action, at management levels, to clear obstacles out of the way of sales, and to pursue those actions until they effectively remove barriers to sale

What the VP Sales needs from the President: clear, measurable business objectives full authority and control

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A framework for growth in high-technology companies A white paper presented by The Six

support of sales efforts a forum for voicing concerns and reviewing corporate decisions, such as management team meetings involvement in monthly management team meetings a dedicated place on the management agenda to discuss sales progress, opportunities, and obstacles clear, timely, and ongoing financial reporting

What the President can expect from the VP Sales: alignment with corporate objectives continuous improvement balance between strategic planning and tactical action contribution to the long-term strategic business plan active involvement in corporate management management of sales force to advance sales cycle and close sales clear reporting on sales progress, opportunities, and obstacles, along with strong say in reporting formats suggestions on mechanisms or actions needed to respond to opportunities and overcome obstacles concern and interest in company revenue levels When you hire your VP Sales, look for: proven performance in a similar role balance of sales and marketing skills strategic thinker capable of tactical execution in-depth understanding of your technology and market a team player ability to perform in a global environment, across multiple cultural, geographic, and social boundaries can provide basic success statistics from previous companies on number of customers, sales per year, breakdown of customer base, how much they increased their territory, number of sales staff they oversaw, and their role in previous management team an ability to express an immediate action plan that includes a current situation analysis and indication of preferred sales team orchestration, tracking and reporting formats

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 31

A framework for growth in high-technology companies A white paper presented by The Six

Early warning signs that your VP Sales is not being effective: complaints from salesforce, customers, or partners unexpected turnover in sales force or loss of customers lack of boasting about large-scale impending wins abnormally large number of lost sales or customers lack of understanding of technology, product, market, and sales cycle volatile forecasting and results inability to clearly define obstacles that are getting in the way of meeting objectives poor feedback on the products ability to meet customer needs poor feedback on customer reactions to sales approach, or on why they are or are not buying lack of interest in financial reports lack of interactions with other team members low awareness of competitive situation How to motivate your VP Sales: aggressive compensation plan involve them in the management team open, honest relationships with the management team (no hidden agendas) support from other corporate departments to achieve sales goals President must provide clear direction to VPs publicly cite the successes of the sales team, specifically naming the VP Sales as the one who led the effort Notes:

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 32

A framework for growth in high-technology companies A white paper presented by The Six

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 33

A framework for growth in high-technology companies A white paper presented by The Six

VP HR & ADMIN: JOB DESCRIPTION


Position: They are hired to: VP Human Resources and Administration Manage the companys workforce be an ambassador for the company, both internally and externally (promote the companys position, image, brand and character) build confidence and pride, both internally and externally ensure that employee needs are acknowledged, managed, and answered, and work to ensure that the President is available to support staff as needed ensure that proper business planning, especially human resources and facility planning, takes place within the company understand and support short- and long-term performance objectives and targets for the company as a whole, for departments, workgroups, and individuals understand the timelines for these objectives and targets work with the President and senior management team to strengthen the companys offering and attractiveness to new employees develop and manage employee input and reporting mechanisms, and ensure that reporting provides the information needed to reveal problem areas ensure that the company provides the financial and human resources to make it possible for the staff to meet objectives, targets, and timelines oversee the companys information technology and computing infrastructures, including networks, IT staff, and software acquisition, licensing and training participate in monthly senior management team meetings to review staff levels and performance against objectives and targets monitor employee attitudes, and work to motivate and inspire them to achieve company and personal goals

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A framework for growth in high-technology companies A white paper presented by The Six

manage employee compensation and benefit plans, and overall human resources issues provide input to the companys facilities and equipment plans to answer employee needs institute and manage the employee communications program, health and safety initiatives, employee input mechanisms, recreation plans, and vacation planning look for ways to boost employee morale, such as contests, annual parties, etc.

What the VP Human Resources needs from the President: presentation of clear qualitative and quantitative staffing targets, along with timelines a budget for recruiting efforts clarification of the companys character, branding, image and personality authority to hire What the President can expect from the VP Human Resources: active participation in monthly management team meetings ongoing reporting of employee attitudes, concerns, and needs, as a result of direct interaction with employees the proactive driving of pay, benefits, and training plans and packages input on human resources and organizational development plans initiative in finding ways to increase the attractiveness of the company as a target workplace for new employees development of recruitment initiatives and plans, including contributing to the employment section of the website When you hire your VP Human Resources, look for: positive energy and an outgoing personality that will allow him or her to be enthusiastic about, and evangelize, the company internally and externally a happy, relaxed demeanor that makes him or her approachable

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A framework for growth in high-technology companies A white paper presented by The Six

experience in pay and benefits, as well as training plan formulation (possibly in a public accounting or consulting firm) strength of character, to allow him or her to recognize poor performance, and take clear, decisive action a history of active involvement and success in steering companies from the senior management team (beyond the responsibilities of financial reporting) interest in the plans of the company, and in its field of endeavour a clear presentation of immediate actions that would be undertaken by the VP Human Resources (these should include review of business and staffing plans, current needs analysis, institution of new staffing plan, formalized performance tracking mechanisms, and interest in meeting with other senior management team members to assist their efforts)

Early warning signs that your VP Human Resources is not being effective: no information conveyed, formally or informally, about employee attitudes, needs, or concerns lack of a formal staffing plan low-quality candidates in personal interviews people leave the company unexpectedly it takes a long time to hire low employee morale the reporting seems too rosy lack of, or ineffective, participation at management meetings inability to table or resolve conflicts or problems poor knowledge of the companys products and/or services, profitability levels, or prospects no exit interviews being held after people quit How to motivate your VP Human Resources: keep them in the loop on major employee issues, achievements, or problems (dont let them get caught unaware and unprepared for good or bad things)

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A framework for growth in high-technology companies A white paper presented by The Six

provide an ownership stake (shares) in the company, and a performance bonus structure in pay the management team must provide authority, tools, budget, time, and support to the VP Human Resources for recruiting efforts listen to input from the VP Human Resources respond to requests from the VP Human Resources to speak to new recruits or potential employees, or to otherwise support recruiting efforts undertake prescribed performance tracking, such as employee salary and performance reviews be vocal and clear about your human resources requirements and quality of candidates, and be prepared to say why to assist future recruitment programs or efforts

Notes:

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 37

A framework for growth in high-technology companies A white paper presented by The Six

VP MARKETING: JOB DESCRIPTION


Position: They are hired to: VP Marketing (prior to hiring a VP Product Marketing) Direct the product development strategy, and create market awareness, demand, and preference undertake market research, including input from sales force, channels, and suppliers, to define market needs and drive the product development strategy create positioning and messaging strategy for company and products promote products and services to target markets through development and maintenance of marketing programs which increase company and product visibility, project positive image, and deliver qualified sales leads collaborate with the VP R&D to ensure that the products respond to market needs, are able to compete, and can support revenue targets provide market fulfillment mechanisms and materials to support sales cycle efforts deliver effective selling tools to support sales channels

What the VP Marketing needs from the President: competitive marketing programs budget involvement in management team meetings involvement in long-term strategy and tactics commitment to message consistency availability for high-level positioning discussions availability for key program approval commitment to decided positioning and segmentation strategy approval of a longer-term vision in the face of short-term tactical sales issues support for VP Marketings product development strategy assistance in working with the R&D team to adjust its size, capabilities, priorities, or timelines to fulfill the product development strategy

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 38

A framework for growth in high-technology companies A white paper presented by The Six

What the President can expect from the VP Marketing: active participation in monthly management team meetings accurate and timely reporting on program spends vs. budget clear reporting on key measurements, such as leads generated by program, by geography, and by major segments When you hire your VP Marketing, look for: successfully held senior marketing positions in technology companies, preferably in a similar technology area a clear understanding of technology issues and concepts clear knowledge of product management and product marketing processes clear knowledge of the roles of various marketing media, such as trade shows, direct mail, advertising, and the web clear vision of how to map a companys marketing message and process onto the worldwide web clear knowledge of the role of selling tools and how they are mapped to a typical sales cycle evidence of clear positioning and messaging impact on previous employers, such as presentations, scripted demonstrations, competitive analysis, etc. commitment to closed-loop sales lead tracking systems an indication of their initial action plan, which includes current situation analysis, demand for information from other areas of the company, definition of the management teams functional role boundaries, and first actions (for example, they should not want to meet key analysts before being well prepared for positive/negative comments) Early warning signs that your VP Marketing is not being effective: programs are not effectively communicated to management before execution programs dont exist as such, but as many smaller, disjointed activities most marketing activity is in reaction to demand rather than driving the process directly

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A framework for growth in high-technology companies A white paper presented by The Six

poor feedback on the hard results of marketing activities, such as lead generation breakdowns, revenues attributed to marketing programs, or rate of penetration into market segments poor understanding of competitive situation poor knowledge of the companys products and/or services poor understanding of products deeper messages (i.e. wont talk to the press without a product manager after six months tenure) no solid partnership with sales and R&D doesnt have a handle on program progress (brings in a staff member to inform the management team) no formal product strategy has been provided in writing

How to motivate your VP Marketing: never make engineers jokes about the marketing role it has not accurately reflected the state of technology marketing for at least five years in the Ottawa market, and ten years in other locations directly relate compensation to results they are responsible for, coupled with their impact on the business (i.e. leads generated coupled with revenue generated) publicly cite the successes of the marketing team use marketing materials, positioning, and messages when publicly discussing the company or product listen to, and act on, concerns raised partner with the VP Marketing on major messages take the time to be involved in portions of the marketing planning cycle everyones an expert in marketing, because they know what they like. This has nothing to do with the image the company or product needs to project. Understand this difference. dont roadblock new marketing initiatives because you may not understand new or emerging technologies or delivery opportunities Notes:

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 40

A framework for growth in high-technology companies A white paper presented by The Six

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 41

A framework for growth in high-technology companies A white paper presented by The Six

CFO: JOB DESCRIPTION


Position: They are hired to: Chief Financial Officer Manage the companys assets, its worth to the investor community, and its financial success be an ambassador for the company, both internally and externally (define and promote the companys position, image, brand and character); act as the natural second to the President build confidence and pride, both internally and externally increase the perceived and actual worth of the company by direct and indirect actions support the Presidents efforts to seek and secure required funding for the organization ensure that key customer, investor, influencer, partnership, alliance, and supplier relationships are acknowledged, managed, and leveraged, and work to ensure that the President is available to support his or her team members in the strengthening of these key relationships; act as a natural second to the President take the lead on establishing the governance framework for interactions with the Board of Directors and with other investor groups, including institution of reporting processes ensure that proper business planning takes place within the company obtain clear short- and long-term performance objectives and targets for the company as a whole, and individually for sales, marketing, finance, operations, and product development obtain clear timelines for these objectives and targets work with the President and senior management team to set clear budgets and resource allocations for these objectives and targets develop and manage financial input and reporting mechanisms, and ensure that reporting provides the information needed to reveal problem areas

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A framework for growth in high-technology companies A white paper presented by The Six

set clear fiscal priorities, and adhere to those priorities ensure that the company provides the financial resources to make it possible for the team to meet objectives, targets, and timelines know how the investor and customer markets perceive the company, and its products or services, so that the CFO can act to strengthen its offering participate in monthly senior management team meetings to review financial performance against objectives and targets; reveal obstacles to growth; develop strategies to overcome these obstacles encourage brainstorming and creative approaches to enhance the companys growth, worth, and profitability be aware of potential liabilities faced by the company on all fronts, and work with the senior management team to mitigate these, especially in the eyes of the investor community take the lead on ensuring adequate legal administration and protection of intellectual property, including minimizing risk associated with legal, staffing, and contractual issues report financial progress to, and ask for advice and input from, the board of directors, major shareholders, and CEO, where appropriate manage company insurance and financing policies and programs manage company facilities and other physical assets be the secondary spokesperson for the organization, and take immediate front-line action to respond to any crisis that involves the company (this requires formal training and an internal crisis plan) be an alter ego who helps the President bridge any trust gaps between the President (or company) and its investors, and who helps the management team stay in touch with investor attitudes and concerns (ensuring investor wealth objectives are aligned with the strategic orientation of the management team)

What the Chief Financial Officer needs from the President: presentation of clear financial objectives

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A framework for growth in high-technology companies A white paper presented by The Six

strong demand to show financial reporting that indicates progress against these objectives demand for suggestions on mechanisms or actions to respond to opportunities and overcome obstacles concern and interest in companys worth and financial success

What the President can expect from the Chief Financial Officer: active participation in monthly management team meetings clear financial reporting that relates to short- and long-term performance objectives and targets for the company as a whole, and for individual team members, as well as clear profitability statements early warning of financial problems, along with suggestions on decisive action to resolve or address these problems feedback from the investor community about the companys image and perceived worth

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A framework for growth in high-technology companies A white paper presented by The Six

initiative in finding ways to increase the profit margin, whether it involves product development, staffing, overheads, taxation, supplier costs, facilities, compensation packages, etc. strong and active input, good or bad, on activities or suggestions that have a repercussion to earnings, profitability or investor confidence

When you hire your Chief Financial Officer, look for: strength of character, to allow him or her to take clear, decisive action in steering the companys worth a history of active involvement and success in steering companies from the senior management team (beyond the responsibilities of financial reporting) positive outlook that will stimulate investor confidence intense interest in the financial status of the company, and in the current positive/negative balance in recent growth, position, image, investor confidence, and employee morale a clear presentation of immediate actions that would be undertaken by the Chief Financial Officer (these should include analysis of past performance, institution of formalized reporting mechanisms, recommended relationship strategy for managing interactions with the Board of Directors and investors, and interest in meeting with VPs of sales, marketing, human resources, operations, and product development to assist their efforts, as well as interest in meeting with the VP Communications to gauge positive/negative image as asset or liability) Early warning signs that your Chief Financial Officer is not being effective: lack of a good financial plan lack of, or ineffective, participation at management meetings poor definition of financial targets or obstacles inability to table or resolve conflicts or problems lack of involvement in key investor or financial relationships poor knowledge of the companys products and/or services, profitability levels, or prospects no adequate financial reporting structure in place

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A framework for growth in high-technology companies A white paper presented by The Six

low awareness of assets or liabilities of the company as they relate to financial, marketing, image, or product

How to motivate your Chief Financial Officer: keep the Chief Financial Officer in the loop on major issues, achievements, or problems (dont let them get caught unaware and unprepared for good or bad things) provide an ownership stake (shares) in the company, and a performance bonus structure in pay the management team must provide support to the Chief Financial Officer through their own energies, ideas, enthusiasm, and recognition of efforts along with the President, place the Chief Financial Officer at the forefront of financial publicity, as the secondary active company spokesperson in investor or financial situations ask for help from the Chief Financial Officer, to pro-actively seek better profitability and more meaningful reporting be vocal and clear about your financial requirements and ability to meet targets, and be prepared to say why and to suggest an alternate course of action to satisfy the financial objective Notes:

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 46

A framework for growth in high-technology companies A white paper presented by The Six

VP COMMUNICATIONS: JOB DESCRIPTION

Position: They are hired to:

VP Communications Manage and strengthen the companys image and reputation, and their related assets or liabilities, and disseminate information internally and externally develop, maintain, and advance relationships with strategic constituencies (publics whose opposition or support can threaten the companys goals or help to attain them; such as regulators, shareholders, media, industry analysts, governments, consumer associations, partners, etc.) develop communication channels and deploy information about the company and its products, services, or activities to media, customers, suppliers, employees, boards of directors, advisory committees, influencers, and investors relay information to the management team that provides insight into future opportunities in a complex company (one with multiple alliances, collaborations, affiliations, acquisitions, channels, etc.), seek and move information both ways to all these constituents, to support mutual trust, openness, reciprocity, credibility, legitimacy, satisfaction, value, and understanding, and report the information to the management team in a timely manner provide immediate, ongoing feedback to the management team from all points of contacts available to the VP Communications provide expert advice on cross-cultural communication issues related to domestic or international marketing internally, guarantee that information and market intelligence is shared amongst business units and regional teams; that new initiatives are widely communicated; that feedback mechanisms exist; and that managers at all levels are made accountable for communications with staff take immediate action, at management levels, to identify, and respond to, potential issues that can threaten the

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A framework for growth in high-technology companies A white paper presented by The Six

companys goals or help to attain them, and pursue these issues until they are effectively resolved develop the companys communications strategy and plan, including specifics such as developing a spokesperson program, key media program, and crisis plan advise on the benefits of corporate social responsibility, community involvement, and environmental leadership

What the VP Communications needs from the President: involvement in management meetings and strategy sessions a dedicated place on the management agenda to discuss communications and image/reputation management progress, opportunities, and issues commitment from the President for frequent and quality communication with internal and external audiences the Presidents involvement in decisions concerning company-wide communications activities a President who has more than just a customer, technology or product-led view of the world, embracing employees, community, and investors alike the Presidents clear understanding that value is accrued through a wide variety of relationships and activities the Presidents commitment to being the top spokesperson for the company on any fundamental issue or opportunity, and especially in times of crisis What the President can expect from the VP Communications: active involvement in all aspects of the companys business, with a view to building all types of organizational relationships that will: save the company money by reducing the cost of litigation, regulations, legislation, pressure campaigns, boycotts, or loss of revenue attributable to poor relationships (risk reduction: minimizing or eliminating negative impacts from the companys publics) make the company money by gaining the support of donors and investors, consumers, shareholders, and legislators that are needed to meet organizational goals

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A framework for growth in high-technology companies A white paper presented by The Six

(opportunity development: fostering and creating favourable relationships with the companys publics that may lead to new business opportunities) an alter ego who helps the President and CFO bridge any trust gaps between the President (or company) and its employees, and who helps the management team stay in touch with employee attitudes and concerns (ensuring job satisfaction and a more productive and creative work force) an alter ego who helps the President and CFO bridge any trust gaps between the President (or company) and its investors, and who helps the management team stay in touch with investor attitudes and concerns (ensuring investor wealth objectives are aligned with the strategic orientation of the management team) identification of, and establishment of a direct relationship with: key media contacts for an increased frequency of positive reporting in general and industry press key industry analysts for an increased frequency of positive, knowledgeable, and accurate reporting on the company and its products or services key industry and/or consumer associations, government officials, regulators, and other stakeholders that have an impact on the company clear and timely reporting to management on positive/negative image/reputation and coverage in business and trade media, analysts reports, and in any other public forum or format provision of media training to improve spokespersons abilities to positively convey company information, image, messages and leadership the VP Communications is a ready spokesperson on behalf of the company, acting with, or on behalf of, the President or CFO

When you hire your VP Communications, look for an individual who has: successfully held senior communication and management positions in a similar high-tech field demonstrated track record for developing and managing alliance and partnership relations

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A framework for growth in high-technology companies A white paper presented by The Six

demonstrated understanding of the regulatory environment of your company, as well as the community, political and financial environments background in marketing-communication, or has successfully held a combination of marketing and communications positions a combination of professional and formal education in business, public relations, management, and mass communication (look for specialties in organizational communications and interpersonal communication) knowledge of, and pre-existing relationships with, your strategic constituencies strength of character and personal leadership to allow for clear and decisive action in demanding support for, and managing, the companys image, reputation, and key relationships with media and various publics an ability to express an immediate action plan that includes a current situation analysis, suggested communications activities, and reporting formats

Early warning signs that your VP Communications is not being effective: inability to provide a benchmark analysis of status of company image and reputation, or to provide ongoing monitoring or feedback to management team in this area lack of a visible communications plan, appropriate to company size and available resources, that identifies strengths, weaknesses, opportunities and threats from internal and external image/reputation perspectives, and a strategy to act on them poor definition of communications objectives, and/or an inability to translate business goals and company vision into measurable communications outputs lack of interest in what other members of the management team have to say about positioning of company image, reputation, corporate culture, or feedback from various sources lack of interactions with other management team members poor relationships with the media, and/or inability to isolate and prioritize key target media, analysts, or other influencers

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A framework for growth in high-technology companies A white paper presented by The Six

lack of interest in investor community or employee issues lack of spokesperson and crisis plans low awareness of company products and services low awareness of competitive advantages or challenges

How to motivate your VP Communications: President must provide personal commitment to, and encourage team support of, communications activities and programs champion communications as a key management activity that permeates all aspects of the business recognize the business value of communications activities, and the VP Communications successes involve the VP Communications in the management team allocate a distinct budget for communications activities provide performance bonus structure in pay seek and take their advice

Notes:

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 51

A framework for growth in high-technology companies A white paper presented by The Six

VP PRODUCT MARKETING: JOB DESCRIPTION


Position: They are hired to: VP Product Marketing Direct product definition, position, and evolution, and provide tools to accelerate the sales cycle own the process for product definition and evaluation undertake market research, including input from sales force, channels, customers, suppliers, and others to define market needs articulate market needs in the form of a product strategy coordinate product release activities, including internal precommunications to guide staff knowledge and prepare them for market advance create product-related positioning and messages deliver effective selling tools to support sales channels, such as demos, presentation, competitive analysis, and objection handling develop a range of value-added offerings that can be negotiated instead of price to close a sale lead the management teams assessment of the overall strength of the technology asset portfolio, ensuring that these assets are adequately protected and optimized for maximum return to the company collaborate with the VP R&D to ensure that the products respond to market needs in a timely manner

What the VP Product Marketing needs from the President: creation and support of distinct role boundaries between marketing programs, product marketing, and product development a clear budget for market research and analysis, and for developing sales support tools support of the VP Product Marketings ownership of the product definition process

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A framework for growth in high-technology companies A white paper presented by The Six

involvement in long-term strategy and tactics involvement in decisions about product feature development when short-term sales opportunities arise encouragement for the salesforce to provide feedback to the process availability for high-level positioning discussions assistance in working with the R&D team to adjust its size, capabilities, priorities, or timelines to fulfill the product development strategy involvement in the senior management team

What the President can expect from the VP Product Marketing: active participation in monthly management team meetings accurate and timely reporting on product status (e.g. lifecycle, penetration, competition, advantages, disadvantages, market conditions, environmental analysis) monitoring and reporting of midstream changes in market conditions, and timely presentation of resulting product response plans a well-mapped, multi-year product strategy that encompasses prioritized market needs and product evolution clear reporting on key metrics, such as total available market, current share of market, opportunities, and obstacles a good grasp and definition of the products competitive stance a clear definition of the business case for new product development initiatives proactive early warning of threats to product viability presentation of broad-based, defensible product decisions, including an indication of its anticipated revenues pressure to match R&D teams capacity to market opportunity When you hire your VP Product Marketing, look for: successfully held senior product marketing positions in technology companies, preferably in a similar technology area

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A framework for growth in high-technology companies A white paper presented by The Six

a history with related industry analysts and/or other key influencers a deep understanding of the specific technology and technology application issues and concepts clear knowledge of product management and product marketing processes, development processes, and lifecycle management clear understanding of roles, boundaries, and interactions between product marketing, sales, marketing programs, and R&D knowledge of how to create positioning and messaging foundations that can be communicated through various media clear knowledge of the role of selling tools and how they are mapped to a typical sales cycle evidence of clear positioning and messaging impact on previous employers, such as presentations, scripted demonstrations, competitive analysis, etc. an indication of their initial action plan, which includes current situation analysis, demand for information from other areas of the company, definition of the management teams functional role boundaries, and first actions (for example, they should not want to meet key analysts before being well prepared for positive/negative comments)

Early warning signs that your VP Product Marketing is not being effective: market needs definition, when challenged, is not solidly defended by supporting evidence such as market research reports, industry analysts views, statistical analysis, or competitive overview a pattern of evidence that market needs dont match what the VP Product Marketing has presented lack of a long-term product strategy a lengthening, rather than a shortening, of the sales cycle sales force wont use the sales support tools created by the VP Product Marketing a fundamental disagreement over product direction or market suitability arises between the VP Product Marketing and VP Sales

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 54

A framework for growth in high-technology companies A white paper presented by The Six

product development strategy (commercial spec) doesnt take into account the capabilities or limitations of the R&D team unable to flag when R&Ds compliance is not sufficient to allow the company to capitalize on a market opportunity, or to understand the companys delivery engine size R&D teams compliance response consistently underdelivers the mandate of the product strategy no solid partnership with sales and R&D

How to motivate your VP Product Marketing: support their ownership of the product development strategy directly relate compensation to results they are responsible for, coupled with their impact on the business (i.e. product line revenues) provide an added incentive for increased market penetration (market share), or for increased market leadership (as testified by third parties, such as analysts) publicly cite the successes of the marketing team use their product definitions, positioning, and messages when discussing the product listen to, and act on, concerns raised give them all available market input and feedback, from any source, to assist their market research efforts include them in all discussions on product sales or development strategies dont roadblock new product strategies because you may not understand new or emerging market needs, applications, or frameworks Notes:

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 55

A framework for growth in high-technology companies A white paper presented by The Six

Authored by Betty Moore, Ignition Point Incorporated Ottawa, Canada Page 56

A framework for growth in high-technology companies A white paper presented by The Six

GLOSSARY OF TERMS
Advertising Paid, controlled messages, crafted to convey information about products or services, and intended to stimulate sales or to alter or reinforce specific perceptions a subset of the overall marketing activity Previous fiscal years bookings that will be delivered (and billed) in the future A committed sale The sale is both booked and billed in the same fiscal period Booking levels (in dollars) divided by actual revenues (ratio of committed sales to actual billings) in the same fiscal period. For example, if you booked $1.5M and billed $1M in the same period, your book-to-bill ratio would be 1.5 a ratio greater than 1 indicates growth for the company A trademark or distinctive name identifying a product or manufacturer, brand encompasses the perceived character, quality, position, and attributes The act of creating, supporting, and consistently propagating the company or product brand Strict adherence to brand character, quality, position and attributes. Brand integrity is eroded when actions are taken that conflict with it (e.g. - if Mercedes cars became widely sold in KMart stores) Third-party sales and/or distribution networks designed to physically transport, market, and sell products

Backlog

Booking Book and bill Book-to-bill ratio

Brand

Branding

Brand integrity

Channels

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A framework for growth in high-technology companies A white paper presented by The Six

Channel marketing Activities undertaken to excite third-party sales and distribution channels to actively market and sell your products through their sales agents Communications Direct sales The act of collecting, and distributing, information Use of exclusive sales agents to sell your products directly to the customer on behalf of the company the opposite of channel marketing

Employee relations The formal act of negotiating pay and benefits packages, and of keeping employees and management aware of each others issues, plans, problems, and activities Image Investor relations The publics opinion or concept of the firm The act of providing information to investors and investment influencers, and managing those relationships towards investment confidence and positive action Dealing with legal, contractual, or other issues of the workforce from a management point of view The act of creating awareness, demand, and preference for products or services among current and potential customers, including all aspects of product planning, distribution, pricing, branding, and promotion Unpaid, uncontrolled reporting and opinions by third parties about the firm, its products, or its services, in online, print or broadcast media The act of securing and managing relationships among publication, TV, radio, or online editors, and of getting positive editorial coverage that supports company image, position, branding, and messages

Labour relations

Marketing

Media coverage

Media relations

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A framework for growth in high-technology companies A white paper presented by The Six

Position

The place, relative to competitors, where the company is, or would like to be, in the market (e.g. - the Cadillac at the top end, the market leader, niche player, low-cost alternative, etc.) Articulation of market requirements to guide ongoing product development and release activities, and the coordination of product release activities themselves

Product management

Product marketing Leveraging of technology portfolio; creation and ownership of product-related positioning and messages; pricing strategies; communication of positioning and messages internally and externally; and creation and management of sales cycle support materials, such as product demos and presentations Promotions Actions or programs that promote brand awareness, preference, and/or sales a subset of overall marketing activity Various, distinct groups of people, with distinct needs and views, who may have an interest in, be impacted by, and can influence the success of, the company The act of working with a set of distinct groups of people called publics with the intention of improving the companys image and obtaining support The positive or negative estimation in which the product or company is held by the public The act of generating and securing a contracted sale of services or products from a customer A person or company that owns a share of the companys equity or assets A person or company that is interested in, impacted by, and can influence the success of, the company

Publics

Public relations

Reputation

Sales

Shareholder

Stakeholder

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A framework for growth in high-technology companies A white paper presented by The Six

SENIOR FINANCIAL COUNSEL


Deloitte & Touche, Ottawas largest high-tech accounting practice, suggests that the following areas of counsel are important in the early and emerging stages of hightech companies. The Six advises that this external financial counsel be sought. Business Advisory Services Business plan review Financing alternatives Corporate structuring and restructuring Compensation consulting Market assessments

Tax Advisory Services

Employee benefits and payroll Corporate tax planning Preparation of corporate and personal tax returns International taxation including U.S. corporate and personal tax R&D tax planning Executive financial counseling Merger and acquisition advisory services Valuations Audit and review services of financial statements Financial systems selection and implementation Performance management Security and control Information technology strategy and planning

Audit and Accounting Services

Management Solutions Consulting Services

Public Offerings:

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A framework for growth in high-technology companies A white paper presented by The Six

A successful IPO requires expertise, teamwork, foresight and communication. Look for professionals who have extensive hands-on experience with offerings in Canada, the United States, or other foreign markets. They will provide guidance, research and review during the registration process, and provide input on a variety of issues as they arise, including disclosure requirements, stock option pitfalls, and alternative accounting treatments based on industry trends and regulatory positions.

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A framework for growth in high-technology companies A white paper presented by The Six

THE SIX EVOLUTION OF CORE MANAGEMENT TEAM


(FOR HIGH TECHNOLOGY COMPANIES)
President VP R&D VP Sales VP HR & Administration ------------------------------------- VP Marketing-----------Communications ------------------------------------- ------------------------------------- VP Product --------------------Marketing ------------------------------------- ------------------------------------- CFO ------------------------------ IT/MIS or CIO VP

------------------------------------- ------------------------------------- VP Communications ---------- Customer --------------------VP Support ------------------------------------- ------------------------------------- ------------------------------------- VP Services ------------------------------------------------------------------ ------------------------------------- ------------------------------------- VP Competitive -----------------------------Intelligence ------------------------------------- ------------------------------------- ------------------------------------- VP Manufacturing ------------------------------------------------------------------ ------------------------------------- ------------------------------------- VP Strategic -----------------------------Partnerships

HORIZONTAL AXIS = TIME PROGRESSION

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A framework for growth in high-technology companies A white paper presented by The Six

THE SIX EVOLUTION OF CORE MANAGEMENT TEAM


(FOR PURE .COM COMPANIES WHERE BUSINESS IS CONDUCTED VIA THE WEB)
President CIO VP Alliances and Partnerships VP HR & Administration VP MarketingCommunications ------------------------------------- VP Product -----------Marketing ------------------------------------- CFO ------------------------------------------------ VP Communications -----------and Investor Relations ------------------------------------- ------------------------------------- VP Customer --------------------Services and Support ------------------------------------- ------------------------------------- VP Competitive --------------------Intelligence ------------------------------------- ------------------------------------- VP International --------------------Rollouts HORIZONTAL AXIS = TIME PROGRESSION

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A framework for growth in high-technology companies A white paper presented by The Six

ABOUT THE SIX


The Six is a group of professionals who have decades of experience working for, and with, high technology companies of all sizes. At the invitation of Betty Moore, the group formed to assist the high technology community accelerate its growth, by providing guidance, in the form of a white paper, on how to structure the company to optimally support aggressive sales and marketing efforts. Early conversations led to a broader view of management structures that would equally assist the research and development staff, and financial/administrative staff as well. The paper was authored by Betty Moore, Rob Rose, JP Jauvin, Don Hewson, Christiane Pag, and Andy Katz.

Betty Moore

Since 1974, Betty has worked in advertising and marketing for a wide variety of local, national and international firms, across industry sectors such as forestry, aerospace, information technologies, oceans engineering, mining, oil and gas, biotechnology, defense, automotive, arts, retail, and finance. Over the years, her work has brought her in close contact with senior executives in many high-tech firms, from startup to multinational, where she gained private insights on successes and problems. In December, 1998, she co-founded Iridium Marketing & Design, a specialty design firm focused on brand strategies, Internet site design, and marketing counsel. In September 1996, she founded Ignition Point Incorporated to assist management teams in high-technology firms undertake effective strategic and tactical business and marketing programs, with a special focus on technology startups. Betty is currently a co-founder in a photonic startup, CTD Photonics, which also benefits from the concepts in this paper. After his tenure as Vice President of Marketing at ObjecTime Ltd., Rob returned to Cognos Inc. as Vice President, Product Marketing, continuing his 12-year dedication to promoting software products to domestic and international markets. Rob was a founder of Cognos Business Intelligence Division, and managed the product marketing strategy for the company's industry-leading

Rob Rose

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A framework for growth in high-technology companies A white paper presented by The Six

reporting and analysis software, as well as the company's web-based solutions. The division's revenue grew at over 100% per year, from $2M to over $150M during his tenure. He speaks regularly on product management and product marketing issues, and is the co-author of The Marketing Resource Guide for the Information Services Industry.

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A framework for growth in high-technology companies A white paper presented by The Six

Jean-Pierre Jauvin

JP has spent over 14 years working in senior sales positions for Cognos, Simware, and ObjecTime, and is currently VP Sales for FastLane Technologies, a Newbridge affiliate. He was posted for 3 years in Paris, France, heading up international sales and business partner programs. He is trained in multiple classic selling methodologies, and has managed direct and indirect sales forces for companies ranging from $3M/yr to $250M+/yr. During his four-year tenure at Cognos, he was the architect of a channel strategy which resulted in over $100M revenues. After working for some of Canadas largest ad agencies in Toronto, helping major national accounts such as Imperial Oil, Molson, Lever, and Colgate Palmolive, Don founded HBS in 1976. Currently the firms President and CEO, Don leads his teams efforts in marketing communications. Over the years, HBS has assisted a myriad of high-tech companies, from small startups to large multinationals. Don serves on the advisory boards of Capital Alliance Ventures Technology Venture Dinner and OCEDCO. Christiane has spent much of her professional communications career serving Canadas federal government, and is currently on the communications faculty at the University of Syracuse in New York State. She spent several years in public and international relations at the National Research Council, where she undertook NRCs most senior communications function, working closely with its technology transfer units. Prior to that, she worked in a number of capacities, including public relations advisor to the National Capital Commission. Andy spent seven years as partner with Deloitte & Touche, one of Canadas Big 6 accounting firms, leading their national service offering to the high-technology industry. His expertise has guided many firms into successful initial public offerings (IPOs). Andy worked for many years with DY 4 as their Chief Operating Officer and acting VP R&D, before launching his own firm, Skypoint Capital, to work in the venture capital arena.

Don Hewson

Christiane Pag

Andy Katz

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A framework for growth in high-technology companies A white paper presented by The Six

If youd like more information about the content of this white paper, or an electronic file via eMail (available in MSWord), please direct your inquiries to: Betty Moore, Founder Ignition Point Incorporated, Ottawa, Canada Tel: (613) 220-2789 eMail: moore@ignitionpt.com

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