This is a continuation to my blog a couple of weeks ago about Startup management.
Having managed two software startups, I have found that the only management process that works is a weekly action point oriented system. I have developed a fairly strict but efficient system with once-a-week mandatory one-hour conference call. All action points are viewable in Google Docs (or other similar real time document sharing environment), and all action points must be updated before the conference call each week. Actions are execution-oriented to the extreme.
Everything is driven from a single main goal, whether it be a software release or first customer shipment. All members of the management team understand this goal, and all actions are agreed accordingly. Strategy-related questions are also listed as action points, and these decisions are maintained in a ledger also available in Google Docs. Progress toward the main goal is also outlined in a simple graph. Main decisions along the way are listed from before the founding of the startup so that everybody can always monitor a change in strategy direction or fine tuning thereof. With these two simple lists: progress monitor, action points and strategic decisions after a fairly short time few weeks or months, the whole management team is working toward a common goal. What is important is that all teams do function independently to best of their experience and knowledge. If they start lacking behind in given action points then other team members should start getting worried and assist them if possible. Most important idea here is having the common goal and acting as one team. Problems (time schedule, quality) relating to the main target should be addressed together even if one team (often product development or customer development team) is mostly responsible.
This type of process is in use in many product or system development projects, but it should be taken into use in general management when developing new products, services or even in complex product launches in which lot of New needs to be figured out. This is because developing New is not management as usual; it is management of the unusual in which strong and weak signals from inside and outside must be brought to the management team quickly. Otherwise the launched product will not be sellable (Customer Development phase was not done properly or the communication between Customer and Product Development teams did not happen) or of quality or in the correct channel or pricing or combination of these mistakes. Often the product will never make the market because the slowness and inability to listen to external signals have already killed it long before.
Matti & Juhana
I agree what you say. For a nimble startup such a process provides both a HUGE and the ONLY opportunity to succeed. Through such development simplicity it can outperform bigger rivals and show customer commitment not possible in more complex organization.
However, such a process is, of course, not enough. In addition you need at least the following:
-a concept relevant for your customers — something they are willing to pay and you can offer better than others
-a means to listen to your customer and make right decisions for him — even when the signals and messages pouring in are messy and not clear (they are always clear later but the challenge is to see them clearly NOW). But this is what you already address in you blog poist at least partially.
-some money to burn
Good luck guys! This is the land of opportunities.
Fully agree with Ari that you need lot more than a good management process to create a great startup.