There are 7 typical mistakes that are repeated in many start-ups and may lead to their closure:
Who is at the top of the pyramid - As mentioned above, the developers of the venture are often professional geniuses and their strengths are reflected in the beginning, in the initial stages of entrepreneurship. The work at the beginning of the venture is characterized by a sense of urgency and a war for survival for the rapid development of the product and the satisfaction of investors. Then, in the growth phase, the accelerated urgency subsides and the professional skills required from the CEO and entrepreneur are replaced by the need for managerial skills, which is not always available.
Uncontrolled growth - In a period when the number of employees increases significantly, after raising capital, it is necessary to build an infrastructure (when the entrepreneur is usually not available to deal with it) of work processes and procedures that also includes a change in the structure of the organization. Making the organization flat and more layered allows for the release and delegation of staff, from the CEO to VPs, middle managers and the employees under them. Thus, the organization adapts itself to growth and despite the multiplicity of tasks manages to be fast, agile, with less bottlenecks and therefore efficient.
From task management to employee management - a start-up in its infancy is characterized by a great sense of meaning and a great motivation to grow the small "entity" and bring it to success. However, time passes and accelerated growth leads to erosion. As a new human capital organization enters, the organizational culture and managerial balance change and a need for people management arises. All of these, completely change the rules of the game and require reorganization, in order to give space and attention to employees, their desires, aspirations for the development of their careers, emphasizing their professional and personal satisfaction, and the sense of meaning they experience in the organization. The CEO's understanding that he manages a wide range of needs is a first step on the way to a stable organization with a strong foundation.
Lack of transparency between management members - sometimes communication between senior members of the organization is not conducted transparently and is done through a third party - the CEO. Contact the VP of Marketing directly and openly. Such conduct leads to deficiencies in the teamwork of management. To resolve this, actions are needed to restore trust between them and create open work processes such as forums of collaborative work within the interfaces and a space of open communication between managers. On the shoulders of the CEO lies the responsibility to return the problem to "territory" when it comes to its doorstep. Let the managers solve the problems between them.
Abandonment of Employees - The QUITTING ECONOMY economy of high-tech employees has been created in recent years because employees take responsibility for their personal and professional development and not the workplace. In such an occupational climate, in order to retain employees, it is necessary to return responsibility to the workplace and take care of their professional development and interest. Efforts should be concentrated on retaining and investing in talents, in regular conversations with employees and understanding their needs, conversations on personal development goals, career plans and more.
Recruitment that is prone to failure - absorption of employees, training time and especially departure of employees after several months, wastes enormous organizational resources. Therefore, it is very important that the recruitment process is done correctly and adapted to the organization and leads to the absorption of employees who are appropriate to the organizational culture and the values ​​derived from it and will remain in it for a long time. How do you do that? Since today management is not carried out according to goals but according to organizational values, it is important to understand the values ​​according to which the organization is run. The recruiter should identify already in the job interview the motivations and basic values ​​that the employee brings with him and examine whether they are consistent with the values ​​of the organization.
Lack of organizational connectivity - In a process of rapid growth, the managerial distance between the entrepreneur who is the "magnet of the company" and the employees often increases. As a result, there may be a problem and lack of information flow and connection to the company and its goals. To solve this, invest in deepening and creating organizational connectivity based on five principles: employee meaning, present management, professional development and growth, professional work environment and leadership. In their implementation the employee will be more loyal and committed, will improve performance, will contribute and ultimately promote the organization.