Lomit Patel's Blog, page 97

The People and Roles Behind Your Startup

“I couldn’t have done it without my team.” How many times have you heard that? Well, it’s the truth. Building a startup is about so much more than an idea. Ultimately, success will depend mainly on the people you hire. 

Once you have determined the structure of your overall organization, you will need to establish key roles and responsibilities. Of course, those will change depending on which structure you choose, but most of these roles will apply to your company in one way or the other.

Executive Roles

Whatever structure you choose, someone will have to be at the top ��� these are your executives.

Chief Executive Officer (CEO)/President: You ��� or your co-founder ��� will likely take on this role, which accepts full responsibility for the business. Your CEO will be responsible for long-term planning, strategy, and business growth.Chief Operating Officer (COO): While you’re focused on strategy, this role will be responsible for overseeing day-to-day operations. The COO will put your plan into practice, ensure teams have everything they need to succeed, and generally oversee business operations.Chief Financial Officer (CFO): Money is essential to every business, but that’s especially true for startups with tight budgets. This CFO is responsible for money management ��� which includes everything from securing investments to budgeting and managing cash flow.Chief Marketing Officer (CMO): When it comes time to create your brand vision and spread the word about your burgeoning business, you will need a CMO. This person is responsible for building your marketing strategy. From brand development to campaign strategy, the CMO and their team will bring your product to the masses.Chief Technology Officer (CTO): Technology enables your organization, and it’s up to your CTO to make sure your team has the latest tools to allow it to do its best work. This role may be more integral to a late-stage startup.Managerial Roles

If you have selected an organizational structure that allows for middle management roles, you will need to decide which positions your company will employ. These people will act as the go-betweens ��� connecting C-suite executives with workers.

Here is a list of managerial roles to consider: 

Product managers are responsible for product development, customer analysis, product purchasing, and establishing effective distribution lines.Purchasing managers are responsible for purchasing stock, maintaining relationships with suppliers, and implementing pricing strategies.Project managers liaise between departments, ensuring projects are completed on time and within budget.Finance managers keep track of accounts and bookkeepers and accurately report profit and loss.Marketing managers are responsible for overseeing marketing campaigns and facilitating internal and external communication strategies.Office managers provide administrative support.Human resources managers oversee internal policies, acquire the right talent, and adhere to all applicable regulations.Quality control managers ensure production is compliant with all regulations and that your product meets quality standards.Operational Roles

The people who get the job done, and keep the company moving, are the people in operational roles. From analysts to customer service representatives, your company is likely to need some combination of these roles: 

AccountantsAdministrative assistantsBusiness and data analystsCustomer service representativesHR assistantsInformation technologistsMarketing assistantsSales representatives

Every startup is competing for the best talent, and the winners get creative about attracting top performers.

Whether it’s an Employee Stock Ownership Plans (ESOP), work-from-home benefits, bonuses, or unlimited PTO, it’s essential to show you value your employees and their contribution to the company’s success.��

The article is also published on��LinkedIn.

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Let���s Talk About Startup Structure

Your startup organizational structure is the foundation of the empire you���re about to build. Despite what much of the corporate world would have you believe, there are many ways to organize your company.

Let���s explore the options, their pros and cons, and what you need to think about before choosing one to build your company.

Hierarchical Structure 

The hierarchical structure is the most well-known way to organize your startup. Most of us have worked in a company that employs this familiar option, defined by each employee reporting directly to one supervisor. Employees are grouped into several relatively obvious options ��� function, geography, or product.

In other words, a marketing manager may report to a marketing director who reports to the chief marketing officer ��� who may report directly to the CEO. A developer may report to the head of product which answers to the CEO. 

The Pros and Cons of Hierarchical Structure

As Chron put it, the main benefit of a hierarchical structure is that it���s easy to understand: ���From top to bottom in a hierarchical organization, everyone knows who their boss is. You know whom to go to if you have a problem or a complaint. You only bypass your direct boss if the boss is the problem.��� However, this common structure fails to reimagine business and can leave employees feeling disempowered. 

Matrix Structure

In the immortal words of Morpheus from The Matrix, ���I���m trying to free your mind, Neo. But I can only show you the door. You���re the one that has to walk through it.��� Sadly, we���re not talking about that matrix, but depending on your perspective, the idea of a company organized with a matrix structure may be similarly mind-bending. Companies that adhere to this structure put people with similar skills together to complete specific work assignments. The result is that employees may end up reporting to more than one manager. 

The Pros and Cons of Matrix Structure

While a matrix structure may be harder to wrap your mind around, it has some apparent benefits to organizations. Not only does it allow for skilled workers to go where they are most needed, the Project Manager says, ���Because the matrix organizational structure fosters better communications, but it also makes the normal boundaries between groups more porous, which allows for more collaboration and an integrated, more dynamic organization.��� It takes very skilled managers to make the most of this structure and ensure that projects run smoothly. 

Horizontal Structure

Also known as a flat structure, the horizontal organization is, perhaps, best known for eliminating many ��� if not all ��� middle management positions. Small companies and startups love this option because it empowers employees to make quick decisions ��� but it requires you to have a well-trained workforce that you can trust to make good choices. 

The Pros and Cons of Horizontal Structure

Startup founders may be drawn to a flat company structure because, as Org Charting points out, the structure is flexible and allows managers to adjust priorities as needed. Of course, as your company grows, it���s harder to imagine scaling this particular structure to accommodate a larger workforce and more impactful decisions.

Network Structure

Another flexible option for startups is a networked structure which ���helps visualize both internal and external relationships between managers and top-level management,��� according to Creately. The part to key in here is ���external relationships��� because this structure is meant mainly for companies that plan to outsource work ��� i.e., foregoing a marketing department in place of working with an agency to create more flexibility.   

Pros and Cons of Network Structure

The main point in the pro-column for a networked structure is the flexibility it provides your team. Working with outside vendors, says Advergize, allows companies to make changes to ���production techniques, quantity, products��� designs or stop the production completely without facing any major problems.��� However, you also relinquish some control over your business when you depend too much on outside vendors, so this structure requires founders to strike the right balance between in-house responsibilities and outsourced tasks.

Divisional Structure

If you foresee a future with a widely dispersed team, a divisional structure may be the right choice for your company. This model breaks down your organization into different divisions ��� often grouped by function or geography ��� each with their org chart and all the resources they need to function. While this structure may be familiar to people who have worked in large, global companies, adopting this structure can allow you to experiment with other organizational styles within individual divisions.

Pros and Cons of Divisional Structure

A divisional structure promotes accountability within divisions and is well-suited to companies with multiple product offerings or services. And if you adopt this structure based on geography, it allows each division to create a culture ���that most closely meets the needs of the local market,��� according to Accounting Tools. While this may be a good plan for a large company, many startups will not have distinct divisions for many years ��� making this an unlikely starting point for smaller companies. 

Line Structure

If your model is ���Keep it simple,��� then this organizational structure may be for you! Authority flows down the chain of command in a straight line, from the top of the organization to the bottom ��� making it very clear who gets the final say. This model requires you to keep the team streamlined and stay focused on your core mission. 

Pros and Cons of Line Structure

A business organized in a straight line has one obvious benefit ��� it���s clear who is responsible for all decisions, making communication easy. The drawbacks are also apparent ��� not only is it difficult to scale an organization if you���re unable to delegate some decisions to trusted managers, but it can also leave employees feeling more like mercenaries hired to execute someone else���s vision than a part of a team.

Team Structure

A team structure is pretty self-explanatory. Team-based organizations utilize teams that work toward a common goal while working on individual tasks and responsibilities. Straight-forward and easy to understand, this structure helps promote teamwork.

Pros and Cons of Team Structure

While this structure is flexible and promotes problem-solving while still maintaining a familiar organizational structure, it also requires a sizable pool of employees to divide them into teams. 

Many of these structures overlap ��� or one morphs into the other as your team grows ��� so you may find that you choose the flexibility of a horizontal structure now but adopt a more team-oriented structure as the company grows. 

Once you���ve chosen and structured, it���s time to think about staffing.

The article is also published at Hacker Noon.

The post Let���s Talk About Startup Structure appeared first on Lomit Patel.

How to Manage and Motivate GEN Z

A new workforce generation is here, one who is raised on a completely different set of values, ethics, and morals. Along with the evolution of technology and social media, Gen Z has taken it upon themselves to shatter the status quo and establish distinct ideals in more than just their personal lives.

Making up about 24% of the current global workforce, this unapologetically vocal and digital generation is entering work with a different set of expectations. That begs the question: how do we manage and motivate Gen Z employees? 

Though every generation is unique, the rapid rise in technology has further exacerbated the generational gap between Gen Z and others. From memes to TikTok and everything in between, Gen Z’s nuances are challenging to connect with indeed translate into the workplace. This generation that uses non-traditional methods of communicating and living also requires non-traditional methods of management. Good leadership starts with a more robust and in-depth understanding of Gen Z and its communication, trust, and growth values.

Communication styles vary from person to person. To Gen Z, good communication goes beyond a phone call or text message and into radical transparency. Opening up different communication lines allows for a safe space to ask questions, learn, and grow. That enables Gen Z to feel more comfortable, which fortifies their personal and professional growth. 

As the social media generation, Gen Z needs community and trust.

Because Gen Z is socially branded as being children, they are often overlooked and undermined. Motivation and encouragement are all the more critical in building and maintaining a sense of trust with Gen Z — enabling them to gain the confidence they need to excel. As a manager, providing oneself as a resource for any questions or concerns will boost Gen Z���s confidence in the workplace.

As digital natives, Gen Z���s lives have been broadcasted for the world to see. This transparency has allowed their voices to be amplified — leading to a rise in ���cancel culture.��� Though cancel culture can be toxic, Gen Z���s need for accountability and growth stems from prioritizing values at work.

Facilitating a type of environment where growth is a priority allows Gen Z to learn from its mistakes and create a growth culture. Ultimately, the goal is for Gen Z to adapt, pivot, then utilize the knowledge they gain to grow. 

Managers can better manage and retain this amazing young generation of talent by knowing what motivates Gen Z employees.

The article is also published at��Hacker Noon.

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Build vs Buy: Incorporating Machine Learning to your Marketing Operation

Excited to be on this roundtable, hosted between Winclap and INCRMNTAL alongside industry experts.

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How marketers use artificial (and human) intelligence to make smarter decisions

Podcast: conversations with marketers using artificial (and human) intelligence to make smarter decisions.

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CMOs Need To Develop 5 Key Skills in 2021

The modern chief marketing officer (CMO) always adapts to new technologies, channels, regulations, and changing customer preferences. This reality shapes what we look for in the modern CMO, beyond their traditional responsibilities and skill-sets

The old school CMOs tends to be more tactical ��� focusing on the overall marketing plan, brand equity and ���voice,��� and public relations. The tendency for digital was to rely on vanity metrics like views and clicks.

However, the demands of the modern C-suite require CMOs to touch upon, manage, and measure all aspects of a business, drive and optimize customer experience, and consistently scale revenue. The CMO must prove themselves to be integral to the development of an enterprise.

Here are five key skills needed for the modern CMO to succeed.

1. CMOs need to be Data-Driven

The concept of ���data-driven marketing��� has been around for a while, but it continues to grow with data sets expanding at exponential rates. The modern CMO needs to be adept at aggregating data from disparate sources and having the skills and knowledge to interpret it.

The ability to use data and insights can inform real-time decision-making and strategic planning while also helping to mitigate risk. Marketing teams have to be agile to adjust and iterate in real-time.

The vast wealth of data available to marketers is only as helpful as the ability to interpret and act upon it. The CMO must implement customer data platforms or management tools and understand how to leverage the technology to derive maximum benefit.

Marketing leaders who understand and can share data knowledge with their peers will be seen as a crucial part of the organization and driving growth.

2. CMOs need Cross-Functional Leadership skills

A great CMO needs to be more than just the leader of the marketing team. They represent the voice of the people and need to integrate consumer needs and marketing strategies in such a way as to add value to other cross-functional departments and teams.

A deep understanding of the organizational structure and being politically savvy is crucial so that marketing can interact successfully with all the cross-functional teams. A good CMO will collaborate with the organization and members of the C-suite while explaining how marketing inputs can lead to tangible and measurable outputs. Marketers must demonstrate their value and return on investment, not simply as a ���black box��� that consumes resources.

3. CMOs need to understand Digital Transformation

It is essential that modern CMOs understand all the latest technologies like artificial intelligence and leverage them for better user experience, engagement, and revenue growth. They should partner across silos with peers like the Chief Technology Officer (CTO) to drive innovation to stay competitive.

Advancements in these technologies may lead to unprecedented opportunities for personalization and predictive marketing. However, until their potentials are realized, CMOs need to be discerning in whether they truly bring value at present. It is another changing field and potential tool that CMOs need to understand and prepare for.

4. CMOs need to be practiced in personalization

Modern customers are increasingly demanding, and their expectations continue to grow. It is not enough to simply be delivering adverts for products the customer searches for online.

Organizations have been forced to rethink approaches to customer experience. Personalization and brand engagement should be present throughout the customer journey from acquisition, retention, and monetization.

Today���s customers expect a more personally tailored experience that builds with every interaction they have with the brand. The CMO needs to be the master of guiding the brand experience, reflecting individual consumer consumption preferences, values, and lifestyles.

By prioritizing the customer and using personal data to create value at every journey, marketers can attract and retain more brand-loyal customers. In this way, the CMO can quantifiably show they are an accelerant for the growth of the business and customer base.

5. CMOs need traditional skills

As the role of the CMO continues to evolve and adapt, certain fundamental skills will always be integral to the position. Creative ideas, campaigns, and strategic storytelling are traditional ways to build a strong brand.

These abilities need to be balanced and enhanced with the rise of data-based analysis. The modern CMO needs to balance traditional and technical skill-sets.

The successful CMO knows how and when to use the latest technologies in conjunction with older core abilities. They need to embrace innovation and know what works best for the marketing team and organization at present.

The modern CMO has had to evolve and adapt more than ever before. They face new challenges, expectations, and opportunities as a result of technological development and changing markets.

This is not an exhaustive list as the skills and knowledge necessary for success vary from the industries they navigate.

CMOs must embrace change and use a blend of technology and traditional skills to bring value to an organization. Understanding customer needs and perspectives and relating them to C-suite members will carry the company forward and cement the position of the CMO.

The article is also published at Hacker Noon.

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How to unlock TV and OTT as a new performance marketing channel

30-Second Summary: 

Many up-and-coming brands, even those who consider themselves fiercely digital native, eventually reach the point of considering TV/OTT to reach millions of new users. Performance marketing TV media can be tracked and optimized much more like digital media than TV has traditionally been viewed. The best way to set yourself up for success in testing TV and OTT is to work with a good TV agency that can help you better unlock this new performance marketing channel.  For some clients, their initial testing budget of $250K/month can scale up to 2-10x, while there are always those rare few who may not see life on TV.

Many up-and-coming brands, even those who consider themselves fiercely digital natives, eventually reach the point of considering TV/OTT. Maybe their breaking point is the article about TV���s massive growth during COVID-19 and the other brands that rode that wave. Maybe it���s reaching the point where further investment in digital channels projects to deliver unacceptable diminishing returns. But when the time comes, the question generally becomes, ���Should I do this��� and IF I test this new strategy, how can I make meaningful learning quickly yet minimize risk?���

Minimizing risk is relatively straightforward. Performance marketing TV media can be optimized, shifted, or outright canceled within 48-72 hours, making it much more like digital than TV has traditionally been viewed. Coupled with low scatter-market CPMs, a wide range of networks to choose from in size, audience, and program fit, and even more, worries can be soothed. And measurement, once TV���s major holdback, has been solved for as well. Site pixels and app tracking feeds can be fed into various modeling systems to be tied to TV spend in near real-time and with near-live data access to performance reports, charts, etc., for both TV and OTT. That said, all of this direct attribution should be weighed against observable holistic lift and the client���s own observations in the early days of the campaign for level-setting.

���Should I do this?��� is a more nuanced question. Brands new to TV should require their agency partners to share research with them on any of their competitors who may be active in the space. This will help show how others have approached the space creatively and potentially answer if there���s a strong audience fit for the category and how far others have scaled. Agencies should also vet all plan networks against the client���s target audience via software like MRI and Helixa and share those learnings. Similar category experience and case-studies should be used to provide the new-to-TV brand with projected metrics of what TV is expected to deliver ��� both at an attributed and holistic level.

Creatively, by the time most brands reach this stage, they have a wealth of experience in their consumers and how they like to be spoken to. This should be shared with the agency to inform the creative development for TV/OTT and the program and channel mix. A mix of 15s and:30s is recommended, as well as at least 2 distinct spot concepts to start. This serves multiple purposes. One, the spot length mix allows for optimization on linear TV if the:15 (at half the cost of the:30) drives a better KPI ��� which it often does, provided the client���s full core message fits the format length, and their audience is accustomed to this messaging. (Seniors are generally targeted with the 60s at minimum, for instance, both for recall and to allow time to capture the 800# /CTA). Second, on the OTT spot, costs are equal for the 30s and:15s, so running:30s has no cost premium. Lastly, going to market with 2 distinct concepts allows for the prevention of a false negative result on TV (e.g., If a single spot does not perform, then TV does not perform).

When it comes to making meaningful learnings quickly, the importance of an agency���s speed and transparency cannot be undersold. They need to be communicative, especially during crucial launch weeks ��� with daily data review and optimizations. It���s also important that there be a built-in testing structure ��� of not just multiple spots and lengths but a variety of network tiers, dayparts, and genres, among other variables. A strong agency partner will take this relatively wide net and hone it quickly ��� dropping any underperformers, adding weight to leading networks for volume and efficiency, and using ���if-then��� logic to identify the next networks to test into the mix.

On the client-side, one of the biggest remaining questions is often how much money to ���bring to the table��� for testing TV in a significant way. We strongly recommend a go-to-market budget of at least $250K for a 3-4 week test.  This may seem like a random round number, but it allows for a 3-4 week test matrix of various channels, from niche to Tier 1 ��� as well as statistically significant data on which spot concepts and/or lengths work best and in which dayparts, genres, days of the week, etc.  Having a budget that allows for frequency on a mix of channel sizes is particularly important. Many of the opportunistic or niche small channels on TV are either not scalable or can receive more positive attribution than they deserve in some models.

So what will you get from that initial launch? Generally, Week 1 is dedicated to ���Does TV work for this client? Meaning: ���Are we delivering at or near their target metrics?��� Any major outliers  ��� good or bad ��� are raised and either shifted or added to. In Week 2 and 3, the mix is toggled further as more data comes in on top spots, lengths, networks, and the benefit of further frequency or lag time. By Week 4, the agency should identify the CPM that correlates to client success, the footprint of TV networks that are delivering on client targets, and the near-term level to which that spend can be scaled safely. 

Their initial testing budget of $250K/month can rocket to a 5-10x safely for some clients. Others will choose to 2x and live at that level for a month or two, then scale again. For some, TV becomes a secondary or tertiary channel that doesn���t rival digital for their core audience. And there are always those rare few who may not see life on TV. If this happens, a good TV agency should be honest during the test about their view of the prospects and even cut the flight short if data indicates.  

The article is also published at Liftoff.

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The Rise of Artificial Intelligence

Lomit discusses the rise of artificial intelligence and its impacts on humanity, reveals what motivated and inspired him to write his new book Lean AI, and also makes predictions about what trends will likely impact artificial intelligence and technology over the next several years, declaring for example that people will rely more heavily on things being digital, especially as a result of the current COVID-19 pandemic playing a role. Noting that only 5% of startup companies see success, he offers some tips and advice, suggesting using money as efficiently as possible so that you don’t run out, being focused on one or two channels rather than diversifying, and changing up how revenue is generated.

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Lomit Patel gets REAL about Growing an Early Stage Startu‪p‬

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Always Be Learning: Take Risks | Keep On Pushing

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