Dave Carvajal

IBM Tells Its Remote Employees to Get Back to the Office

IBM Tells Its Remote Employees to Get Back to the Office

By Martha C. White / May 23, 2017

For a company whose embrace of mobile work predates the internet and even the personal computer, IBM’s decision to recall employees back to the office has human resources experts warning that the move could make it harder for Big Blue to compete with the likes of Google and Apple, along with hot startups, to recruit and retain the best people.

“I think it is going to be a talent problem,” said Jennifer Glass, the Barbara Bush professor of liberal arts at the Population Research Center at the University of Texas. “It’s very clear in the literature that autonomy is something talented workers want, especially millennials.”

A survey by Flexjobs.com found that 80 percent of respondents said that flexibility was a top consideration when considering a new job, and a third reported leaving a job because it didn’t offer the flexibility they needed.

“People work from home for a lot of different reasons,” Sara Sutton Fell, founder and CEO of Flexjobs.com, including accommodating childcare, eldercare and disabilities. “They need it. They don’t just want it.”

Some experts say the rollback of telecommuting reflects a more seismic shift as IBM struggles to adapt to rapid changes in an industry it once dominated. “When technology companies change priorities or shift focus, there can be a change as well to how and where employees work,” said Scott Dobroski, community expert at Glassdoor.com.

“This is is a sign of something much bigger,” said Dave Carvajal, CEO of Dave Partners, a technology-focused recruiting firm. “IBM is struggling to compete in the competitive tech marketplace that has become significantly more agile and nimble over the past decade.”

IBM’s quarterly report last month had higher-than-expected earnings but missed analyst expectations on revenue — marking five years straight of year-over-year quarterly revenue declines. Company executives say making people work together will help reverse its fortunes. At a conference last fall, CFO Martin Schroeter talked to investors about “get[ting] the teams back together as opposed to so spread out,” saying the relocation would make them “more agile.”

It Didn’t Work for Yahoo

But not everyone agrees that proximity can foster performance gains. “I’m personally a little skeptical,” Sutton Fell said. “It didn’t really help Yahoo.”

The news of IBM’s reversal on telecommuting drew many comparisons to Yahoo. When CEO Marissa Mayer eliminated Yahoo’s work-from-home perk in 2013, it provoked a backlash from those who said the shift placed an unfair burden on working parents — especially since the news was coupled with reports that Mayer had a nursery constructed adjacent to her office so she could bring her then-infant son to work with her.

Given IBM’s performance struggles, some observers suggested that the shift away from remote work could be a way to shed workers through attrition without resorting to layoffs.

“IBM has been bringing teams like these together for several years, across many areas of the company: software development, digital marketing, Watson, design, and IBM’s CIO teams, just to name a few,” IBM spokeswoman Laurie Friedman said via email. She did not respond to a question about how many employees ultimately would be affected but said workers could reapply for other jobs — around 5,000 in the U.S. — with the company, and added that some workers would be able to continue working remotely.

“I’m highly suspicious of this idea that if you corral everybody into the same room you’re going to get magic,” Glass said. “I think it’s an attempt to exert more managerial control when business is down and they’re under pressure to turn things around.”

Collaboration May Need to Be Relearned

Some experts do see the potential for a positive outcome as IBM expands its work in areas like cloud computing and artificial intelligence. “We know it’s an added focus on innovation,” Dobroski said. “That’s very enticing to today’s tech talent.”

By making people come into the office, managers will be able to focus on more hands-on mentoring and training — benefits that attract ambitious millennials but are harder to execute with a far-flung workforce.

“This is the generation that says, if I’m not learning, I’m gone,” said Dayna Fellows, president of consulting company WorkLife Performance, Inc. The back-to-the-office movement could work if management is “really smart and clear” about the benefits working in an office will provide, she said.

But to achieve this, experts say IBM will need to invest in restructuring its work environment and culture.

“If they simply bring people in and expect them to work exactly the same way in a crowd situation, it will fail,” Fellows said. “That would be the mistake, is if everything stays the same but people come in.”

“Collaboration is helped by being together, but it has to be on purpose. You have to create a culture… It doesn’t just happen by bumping into each other,” said Ellen Galinsky, senior research advisor at the Society for Human Resource Management. “If the problem is collaboration, that probably needs to be addressed directly. You can’t just assume that if people are in the same space, they are going to collaborate and work together,” she said.

“Holistic change at that level requires real leadership,” Carvajal said.

Via: NBC News

A Challenge to Finding Uber’s New COO: Its CEO

A Challenge to Finding Uber’s New COO: Its CEO

April 13, 2017

Help Wanted: A chief operating officer to help change a Silicon Valley giant’s now-notorious “bro” culture, but who can thrive in a power dynamic that hands the boss overwhelming control.

At Uber Technologies Inc., co-founder and CEO Travis Kalanick commands everything from board decision-making to the exact hour the beer taps will open at the company’s San Francisco headquarters.

That management approach is rooted in more than just a cult of personality.

Uber ‘s governance and share structure, and the “founder-friendly” terms of the $13 billion in equity the company has raised, give Kalanick, his co-founder and a fellow employee ultimate control over the company, according to company documents and an Uber investor with knowledge of the matter.

As the company searches for a chief operating officer who can in theory take on some of Kalanick’s sweeping authority, that looks to be a problem.

“A COO would report into Travis, so structurally, there’s the rub,” said Dave Carvajal, an executive recruiter for venture-backed tech companies. “This COO is going to need to have influence at the board level to effect change.”

Kalanick’s near-total control at Uber is made possible largely by a dual-class share structure that gives certain owners 10 votes per share, according the company’s certificate of incorporation filed with the State of Delaware.

Kalanick, along with Garrett Camp, Uber ‘s co-founder who is now working on another startup, and Ryan Graves, Uber CEO prior to Kalanick, together hold enough of those super-voting shares to give them control of the company, according to an Uber investor with knowledge of the matter.

The documents say Uber ‘s executive board may have eleven voting members, including nine seats controlled by shareholders with super-voting rights.

But Kalanick has kept the power circle small, leaving four board seats empty. In addition to Kalanick, Camp and Graves, the board includes venture capitalist Bill Gurley of Benchmark, David Bonderman of TPG Capital, Yasir Al Rumayyan of the Saudi Arabian public investment fund and media impresario Arianna Huffington.

Leaving control with founders has become popular in Silicon Valley in recent years, both because of the success of founder-led enterprises like Facebook Inc and Alphabet Inc’s Google, and because investors compete with each other to fund entrepreneurs by offering them the best terms.

Those circumstances helped Uber obtain a $68 billion valuation, the biggest of any private venture-backed company.

But with Uber rocked by scandals, including detailed accusations of sexual harassment from a former female employee and a video showing Kalanick harshly berating an Uber driver, Kalanick just weeks ago promised to “grow up” and hire a COO who would offer “leadership help.”

The COO search is ongoing, but Uber ‘s human resources chief told reporters last month that Kalanick, 40, is already showing a more collaborative style.

The share structure leaves investors with few options if they lose patience with Kalanick, though there is little sign of that happening. With two public exceptions, investors have either supported Kalanick or stayed silent as the company’s all-important rider numbers continue to grow even in the face of controversy.

Mitchell Green, a partner at Lead Edge Capital that invested in Uber at a $40 billion valuation, believes the controversies will blow over and he even wants to buy more stock.

“We believe that Travis continues to drive shareholder equity value higher,” said Green.

Read: Uber CEO Travis Kalanick’s Ex Reveals More Details About the Company’s Culture

The most effective COOs have broad authority and direct access to the board, governance experts say. At Facebook, for example, COO Sheryl Sandberg works in partnership with founder and CEO Mark Zuckerberg and holds a board seat.

At Uber , it’s not so easy to envision what a power-sharing arrangement would look like, or how the brash founder could be an agent of managerial change under such a governance structure, the experts said.

“People don’t like to correct their own homework,” said Bill Aulet, managing director of the entrepreneurship center at the Massachusetts Institute of Technology. “This is a situation where the checks and balances are not really in place.”

An Uber spokesman declined to comment for this story.

Read: Despite All Its Scandals Uber Says It’s Growing at a Record Rate

A string of high-level executive departures – including company president Jeff Jones last month and top communications chief Rachel Whetstone this week – has centralized even more authority with Kalanick and raised questions about the staying power of his deputies.

Kalanick is known to obsess over details like office decor alongside big issues like pricing strategy and driver relations.

Kalanick at one point ordered the beer taps in the office locked during certain hours, controlling when employees could pour themselves a pint, after expressing displeasure with one imbibing staff member, said one former employee.

The CEO closely managed Uber ‘s logo redesign last year, despite himself not being a designer, according to a source close to the company. Design chief Andrew Crow announced he was quitting the day after the new logo was unveiled.

Read: Uber’s President Is Leaving the Company After 6 Months

Soon after, Kalanick rejected the new logo designers brought him for Uber Eats, the company’s food-delivery business, upset that the team hadn’t shown him every iteration of the design, according to a second former employee.

The CEO also at times edited press statements following a PR incident, the former employee said. He was especially anxious that the company didn’t come across as too apologetic.

This sort of iron grip may deter qualified COO candidates who “don’t want to do their job with one arm tied behind their back,” said Robert Siegel, a lecturer at Stanford University and venture capitalist at XSeed Capital.

Via: Fortune

5 Books That Recruiters Say You Must Read — Even if You Don’t Need a Job

5 Books That Recruiters Say You Must Read — Even if You Don’t Need a Job

By Martha C. White / Mar 17, 2017

Whether you’re actively looking to climb the corporate ladder or you’re happy in your current job, professional headhunters explain that these are the books that will advance your career — and why.

The Art of Living: The Classical Manual on Virtue, Happiness, and Effectiveness

Courtesy of Amazon 

It might seem strange to have a high-tech recruiter to recommend a book by a Greek philosopher who lived nearly 2,000 years ago, but Dave Carvajal, CEO of technology recruiting firm Dave Partners, says it contains some surprisingly modern insights for today’s professional.

“Some of the virtues from the Greek stoics are perhaps more relevant today with the increased pace of innovation and the need to manage the velocity and depth of external relationships,” Carvajal says. Even in an age when social media dominates much of our interaction, this advice proves timeless. “A sense of affiliation with like-minded people leads to high satisfaction rates at work,” he says. “Managing the internal world and self are the only things we can control.”

Read the full article Via: Time

Competition in Job Market Lets Professionals Set Their Travel Terms

Competition in Job Market Lets Professionals Set Their Travel Terms

With the unemployment rate low and competition for top talent rising, travel perks are increasingly coming into play as a bargaining chip in recruitment.

One of those who benefited was Eleanor Lacey, a Silicon Valley lawyer, who said she had initially dismissed a job offer from a cybersecurity company because the position involved frequent travel, nearly all of it overseas.

“I was very secure and happy in my current job, and so I didn’t need the job,” she said.

But other benefits were appealing, like a schedule that would let her be home with her family in the evenings. So Ms. Lacey employed a tactic human resources and executive compensation experts say they see more frequently today.

“As a general counsel, I see C.E.O. agreements all the time. A few years ago, I realized it’s not unusual for C.E.O. or other C-level to negotiate their travel,” she said. “I felt like I could do a real negotiation.”

Ms. Lacey said she asked to choose flights based on the airline’s safety record rather than making price the sole determinant, and for weekends to remain travel free whenever possible so she could spend more time with her family.

When the company agreed to her terms, she took the job.

According to the Society for Human Resource Management, 17 percent of American companies in 2016 offered first-class or business-class flights for employees traveling internationally, up four percentage points from five years earlier. The number offering the same for domestic travel grew by two percentage points over that same period.

“I do think companies are aware that the best workers are more in the driver’s seat,” said John Challenger, chief executive of Challenger, Gray & Christmas, an executive outplacement firm. “Companies know that if they lose someone they value, it’s harder to go out and replace skilled workers in a low-unemployment environment.”

Greeley Koch, executive director of the Association of Corporate Travel Executives, said nearly half of corporate travel managers in a recent survey said they had fielded employee inquiries about managing work-life balance in regard to travel.

“If a company’s going out to recruit people, some of those people are asking about travel policies,” he said.

Industries where competition for talented employees is fiercest, like technology and financial services, are most likely to be flexible with travel perks to attract and keep the best workers.

As a result, Mr. Koch said, “One thing we’re starting to see is that not all travelers and not all trips are being treated the same.” In one case, he said, a company measured a travel manager’s performance on travelers’ satisfaction rather than on cost savings.

In-demand professionals say they have asked to fly nonstop rather than be forced onto cheaper connecting flights, or stipulated which airlines they will and will not use.

Making business travel a little more pleasant is a tactic companies are using for retention as well as recruitment.

“Travel is one of those sorts of things that makes life hard for people who are on the road all the time,” Mr. Challenger said. “So looking for ways to make that experience easier is something companies are doing to make it more palatable.”

Lacey Van Luven, a consultant at American Express Global Business Travel, said, “About 20 percent of the inquiries I received in the last six months alone were related to senior executive or frequent traveler perks.”

“We focus on the road warriors,” she said. “These are typically the high performers for their companies, willing to look at a better job.”

A report issued jointly last year by the Airlines Reporting Corporation, American Express Global Business Travel and the travel consulting firm tClara found that roughly four-fifths of more than 750 business travelers surveyed would be interested in working for another employer — and traveling just as much — if the travel policy was attractive. Nearly as many said a prospective new employer’s travel policy was as important as or more important than pay and responsibilities.

Companies are eager to keep these workers happy. So paying extra for business-class seats might be the more economical choice, as research has found that the cost of replacing top-level executives can total more than 200 percent of their annual salaries.

“What I’m seeing is many of these clients are willing to loosen up the purse strings a little bit at first just to see if it’s going to facilitate traveler buy-in,” Ms. Van Luven said.

“The cheapest choice is not always the most efficient choice, and that’s something corporate travel policies have trouble articulating,” said Loe Cameron, a bioengineer in research and development who spends about three-quarters of her working time on the road.

Since her company was acquired about a year and a half ago, Ms. Cameron said that she had noticed more restrictions on the hotels and airlines employees were allowed to book, but that inconveniences like overnight layovers, convoluted itineraries (say, a United States-to-Britain trip via Turkey) and routes that require stopovers in cities with political or sectarian tensions were far less common.

“It’s been, on average, an improvement,” she said. “I think we have a lot of autonomy around travel.”

For human resources managers trying to woo candidates, agreeing to offer more flexible or comfortable travel arrangements is often more appealing than paying more in compensation, said Dave Carvajal, chief executive of Dave Partners, a technology recruitment firm.

“A company can win big points making their offer attractive without giving too much,” he said. It is not a fixed budget item that must be justified to investors or shareholders, and it makes the company look good from a corporate culture standpoint.

Mr. Carvajal said it was common for professionals he contacts on behalf of companies with open positions to ask for travel-related perks, along with salaries and other benefits. “Especially at the executive level, it’s all negotiable,” he said.

“The nature of work has really become ‘always on,’ ” he said. “To the degree you can find some creature comforts and make it easier for people to be more productive, it’s a sound investment.”

Via: The New York Times

Dave’s Best Books of 2016

Harry Truman said, “Not all readers are leaders, but all leaders are readers.” The greatest investment you can make is in your own learning and growth.

 1. Extreme Ownership: How U.S. Navy SEALs Lead and Win

by Jocko Willink


2. The Art of Living

by Epictetus


3. Mindset: The New Psychology of Success

by Carol Dweck


4. The 10x Rule: The Only Difference Between Success and Failure

by Grant Cardone


5. Scrum: The Art of Doing Twice the Work in Half the Time

by JJ Sutherland & Jeff Sutherland


6. Bold: How to Go Big, Create Wealth and Impact the World

by Peter Diamandis & Steven Kotler


7. MONEY Master the Game: 7 Simple Steps to Financial Freedom

by Tony Robbins


8. Lead with Humility: 12 Leadership Lessons from Pope Francis

by Jeffrey A. Krames


9. The 4-Hour Body: An Uncommon Guide to Rapid Fat-Loss, Incredible Sex, and Becoming Superhuman

by Timothy Ferriss


10. Play Bigger: How Pirates, Dreamers, and Innovators Create and Dominate Markets

by Al Ramadan, Dave Peterson, Christopher Lochhead, Kevin Maney


11. On Writing: A Memoir Of The Craft

by Stephen King






18. Deep Work: Rules for Focused Success in a Distracted World

by Cal Newport


19. The Miracle Morning

by Hal Elrod, Michael J. Maher, Michael Reese, Jay Kinder, Honoree Corder


20. The Go-Giver: A Little Story About a Powerful Business Idea

by Bob Burg & John David Mann


21. Masters of Success

by Dave Carvajal


If you like what you read, share this list with your friends and networks.

When to Hire an Executive Search Firm & How to Find the Best

We see it play out every day: show us a promising startup that’s floundering, and we’ll show you an executive team that was built haphazardly or based on short-term thinking.

Building dynamic executive teams is the key to success — an insight that holds doubly true for companies in high-growth mode. Inside the tornado of rapid expansion, emerging businesses won’t survive or thrive without the right executive teams in place to nurture system-wide creativity and protect organizational values. That’s why top CEOs now report spending 30–50% of their time managing human talent.

So when is the right time to hire an executive search firm?

If you’re asking that question, the answer is probably: right now.

Typically, by the time executive search firms are brought on board, companies are already hurting. They’re missing one or more key members of the executive leadership team, stalled on a crucial search, or struggling with a string of bad fits. They’re losing market share or paying the high costs of lost opportunity. Their CEOs find themselves burdened with endless rounds of recruitment, instead of putting their energy where it counts — building the team.

This happens even with some of the most productive, people-savvy CEOs around. Chalk it up to the dynamics of growth. When a business is small, the personal contacts of the C-suite and Board may suffice to build out a strong executive team. Once the business is on a rapid growth trajectory, that’s unlikely to be true. It takes specific expertise to run a fast, agile, and rigorous search. It takes miles of networks. It takes deep wells of HR experience and intuition.

But once you know you need outside help, how do you find the executive search team that’s right for you?

Here are crucial issues to consider:

Find a search firm committed to learning your culture and core values. It’s not enough to understand the list of competencies you seek in a new executive. Each candidate a headhunter brings you should be vetted for the core value set your leadership team honors. They should share your cultural DNA. Otherwise, their presence is likely to cause turbulence at a point where you need to focus on fortification and growth. You need a strong core values match, to be sure and you can’t afford to think short term; sacrificing values fit over skills fit. Neither should your executive search firm.

Ask who will be leading the search. Remember the adage: Success has many fathers, failure is an orphan. The bigger the search firm, the more that people take credit for work of others and the longer your search will take. Make sure your search will be led directly by someone whose name is on the door. It’s that simple. That way the success or failure of your search will reflect directly on the firm you’ve brought on board. It’s the quickest and best way to ensure accountability — and to avoid having a crucial search languish for months on the desk of an overwhelmed associate.

Look for a search partner who has been on the inside, building a company with his or her own hands. A search executive who has been on the inside, rapidly scaling up both an executive team and the functional teams that support them, will understand your needs and growing pains intuitively. They’ll understand the pitfalls of recruitment from the inside out — and they’ll have mastered the art of the executive interview in a way that only happens when your own company is on the line. There is just no substitute for experience.

Look for a search partner who can be a full partner to you. A search firm will be your bridge to talent. It will represent your company to diverse circles of stakeholders, including investors and potential clients. You need to make this choice count on multiple levels. Look for someone with the energy to inspire top talent to join you. Look for someone with the gravitas to represent your firm and its mission in the fullest and most holistic way.

Professional recruiters exist to help entrepreneurs conquer the world with what they are doing. More than just securing great hires, we influence the culture, strengthen teams and form a real mission-based partnership with the companies that have the greatest opportunity to make the world a better place for us all.

This is our calling. It’s why we love what we do.

For more information visit www.DaveCarvajal.com

Investor Spotlight: How to Best Support an Executive Search

As an investor and board member, you have a unique perspective that can help guide an executive search to success. You are more emotionally removed from the day-to-day pressures a CEO faces. This emotional distance puts you in a great place to uphold the mission, vision and prosperity of the organization while remaining a fiduciary to shareholders.

You might at times intuitively sense when a CEO is about to make a mistake. The right board mentorship and participation can help a startup founder avoid serious blunders. One of the worst mistakes a CEO can make is selecting a bad executive hire. Failed executive searches cost up to five times the annual salary. The wrong executive hire at a high-growth business costs significantly more than at a slower growth company. It can literally put your survival at stake when an executive leadership role is involved.

On the other hand, the positive impact of a successful executive search is a 1,000% ROI. The right executive hire earning a $350k total cash package will create a $3.5M+ increase in enterprise value in the next 12 months. When it comes to your important executive search, the costs add up to one conclusion: get it right the very first time, every time you secure a hire in a key leadership role.

To ensure a successful search and maximize ROI, here are three important steps to take:

1. Refocus on Strategic Priorities

The CEO of the company is facing enormous pressure. Either the company is in the midst of tremendous growth and the need for a functional leader will help keep the train from derailing; or, the team is overworked and performance numbers are suffering so a CEO might decide that something, anything must be done fast. He or she might settle for a candidate that is “good enough” just to alleviate some pressure. In this scenario, the CEO is so mired in the company’s current struggle that he or she has lost sight of longer-term strategic priorities. Double down and re-focus on your strategic priorities for the next six to twenty-four months.

2. Define Success Factors

After you’ve rallied your executive leadership around the mission and strategic priorities of the company, make sure you are also crystal clear on what the success factors are for the leader you need to place. What do they need to accomplish and what will success look like for them? How will they help drive the strategic priorities?

3. Core Fit Selection

Technical chops account for 20 percent of the reason why someone will succeed or fail at any company. A strong values fit accounts for 60 percent. Remember that what makes a candidate uniquely qualified to be successful at your organization is a combination of both core competencies (the basis for strong technical chops) and core values (the basis for strong culture fit). Core competencies allow a leader to be effective in a role, and core values alignment is what pushes leaders to achieve their purpose.

Everything bad that happens at a company is fundamentally a people problem, and so is everything that’s good. There is an A+ player for every executive role in every company. As an investor or board member, you have a broader perspective. You have a more clear view of what the values of the organization are and what core values a candidate must have in order to achieve the mission of the company.

The best utilization of venture capital is in acquiring the right human capital.

For more information visit www.DaveCarvajal.com

This is Why You’re Not Finding the Right Candidates When You Hire

The emergency call usually comes in when a botched executive search has escalated to a crisis situation. The search has typically been going on for nine months or longer as a big brand search firm cycled through subpar candidates who were unemployed, available and convenient leftovers from previous searches. Or the search firm was sending candidates with horrible culture fit who couldn’t pass the airport test. My team gets called in to rescue that search gone bad when the CEO has had enough and is ready to invest in another process to achieve a greater result.

Large firms are interested in going a mile wide and an inch deep. They are spread too thin and have many encumbrances and restrictions that keep them from pursuing the absolute best talent. Large firms also struggle to create the genuine relationships and meaningful engagement that a more nimble boutique firm is capable of. They will often have junior recruiters doing the heavy lifting. By doing this, big search firms operate a lower quality search and frequently fail to engage top candidates with the opportunity you created.

This happens because most recruiters still believe it’s acceptable to perform Level 2 Recruiting. Level 1 and Level 2 Recruiting consist of broadcasting openings and relying on a blunt, passive search process. Level 2 Recruiting relies specifically on referrals and networks to find candidates who are available and convenient.

There is a better way of recruiting — an elite, special forces approach — and that is Level 3 Recruiting™. Level 3 is a refined selection process of precision extraction to secure the top 1% of A+ executive leaders. Each search for a leadership position must be conducted with a fierce drive to find the ideal candidate. This means caring deeply about not only finding the right person, but communicating with and listening to that person. It means presenting a powerful, irresistible argument to convince that candidate to leave his or her great job. Most top leaders are not between jobs, waiting for the phone to ring. They’re already engaged in something they find interesting. An elite headhunter capable of Level 3 Recruiting can get top candidates out of an existing state of mild happiness, assess their core competencies and core values to ensure culture fit, and then secure them in a fantastic new role — one where they are uniquely qualified to succeed.

For more information visit www.DaveCarvajal.com

CEO Spotlight: What To Do When Performance Numbers Suck

CEOs are responsible for driving the highest possible performance results. Of course, this task is much easier said than done. Teams miss their KPIs and MBOs for any number of reasons. Sometimes, despite the strength of your leadership, you know your own expertise in making it better is limited.

So how do you get performance back on track fast? Skillful leaders are able to achieve results through their team the same way a good coach builds team performance by leveraging individual talents and filling the gaps. Sometimes CEOs and coaches feel torn about what to do when it comes to making tough calls on talent. Here are your options:

  1. Train: You can send someone to get the training they need to improve individual and team performance. It’s a good idea to develop the skills in your team, but this option takes a significant investment in time. In the months that it takes for this person to learn new skills, he or she might have the theoretical or academic understanding of how to solve a problem — but the person will still lack the the years it takes to develop mastery. If your business is in high growth mode, any individual’s capacity to learn — no matter how strong a team member he or she might be — will likely be outpaced by the needs of your company.
  2. Outsource: You could outsource a problem area to a consulting firm. This might be a good plan for skills that are not strategic to your vision and goals. Keep in mind that this option is expensive and you are not guaranteed quality. If you need to increase performance in an area that is strategic to your mission and vision, then you need to build the capacity internally.
  3. Recruit: That leaves a CEO with the best option for developing capacity in a high-growth company. Recruit and hire a world champion to fill the gap your team is missing. And remember that hiring must be done with mastery. Dabbling in recruiting and making the wrong hire will only add to whatever problems you’re already facing.
  4. Nothing: The last option is to do nothing. CEOs do this all the time by choosing not to hire an expert. Sometimes it’s worse and they take on yet another set of responsibilities for themselves to prove their personal significance. This is the most painful option that often causes the kind of skull-crushing brain damage that creates suffering for everyone involved.

Theodore Roosevelt said, “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.”

Make the right executive decision and remember that the best utilization of venture capital is to acquire the right human capital.

For more information visit www.DaveCarvajal.com