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The Success of a Company Lies in Its Employees

Does the key to success lie in extraordinary individuals or a homogenous group? When passing a judgement on entrepreneurial ideas and business plans, a great importance is attached to people who are behind the presented ideas. As a rule, even a brilliant business plan will be ineffective in the eyes of investors if the latter are distrustful of the people who are its core.

It is therefore clear that, when creating entrepreneurial teams, one has to strive for multidisciplinary and complementary know-how of the team. On the other hand, the fact that in the years to come these people will spend a major part of their lives together needs to be taken into account, and that therefore their traits need to be compatible in order to prevent any major personal disagreements.

When creating a team, we therefore need to strive for a maximum level of expertise of the members, but at the same time we need to observe characteristic nuances of individuals, who could potentially cause unprofessional stress in the company. Since at the beginning entrepreneurial teams are normally smaller, each weak link in the staff structure is very apparent and has a negative impact on the productivity of other members. Hence, when forming a team and managing a company in its early stages, special attention needs to be dedicated to the following areas:

1. Equal perception of business goals - all members of the entrepreneurial team must be acquainted and agree with the long-term goals of the company, its mission, and short-term objectives that will lead to the achievement of these goals.
2. Business culture - business culture that we wish to see in our company needs to be introduced into everyday routine. No individual should be excluded from the framework of the prescribed culture. Nevertheless, the culture can depend on the industry in which an individual company operates.
3. Transparency of management – management and introduction of business culture among the employees must be transparent, and each individual must be acquainted with the positive and negative consequences of observance or non-observance of business culture in the company.
4. Dynamics of organisational structure – the head of an individual company should determine how rigid the structure of the organisation will be. Organisations with a more rigid structure are easier to manage, however, normally, such structures hinder fast development. A more flexible structure of organisation is more appropriate for smaller systems, though problems with an authority in charge of decision-making may arise.
5. We have a group of excellent individuals with remarkable technical skills? Mainly in technological companies, one often comes across individuals who find it difficult to integrate into the social life of the company, but at the same time they have a highly developed technological knowledge, which considerably raises the value of the company. It is up to the company leaders to decide on how much personal freedom these people will be afforded, so that this does not interfere with the business climate of the company. How much are you in command of your staff?

It is recommendable that every director of a young company studies the conditions in their system in the mentioned five areas before embarking on the search for strategic or financial partners. Even if there are no plans for the company to develop with the help of external investors, the personnel issues are of an extraordinary importance. Throughout the development of the company, the management style (from entrepreneurial to corporative or modular) and the organisational structure, which normally transforms from an informal to a formal one, must change.

The speed of adapting the organisation to the market situation depends on each leader. Normally, the leaders do not have the right feel for how long they can themselves manage the staff they lead. Inadequate distribution on a hierarchical ladder from top to bottom normally leads to disproportionate burdens on individuals, poor awareness within the company, and consequently the weakening of the business culture within the system. Those who ignore organisational changes and do not dedicate sufficient time to them will soon stumble upon internal problems that will have a considerable negative effect on the efficiency of the company on the market.
 

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