Talent Without Clear Strategy = Startup Failure

I worked for a tech startup 1999-2000. We had the best conditions a startup could hope for…multiple rounds of series B & C investment, multiple Defense Dept. contracts, great facilities, and amazing, excited, super-committed talent. With all these conditions set for success, you would expect great things right?  It didn’t happen.

The company is still around with stock price hovering around $3/share, struggling not to get de-listed.  I shake my head every time I see a new press announcement and how this company is just trying to survive. Why?  Because it should have been a huge success.

About 75% of the mid level managers with whom I worked with at that startup and I went on to run successful companies.  Our OWN companies.  I often wonder, “Were we too independent as individuals?  Too many chiefs, not enough workers?”  But I don’t believe that was the case.  The real reason the startup failed, but the same people later succeeded, has to do with strategy.

The startup’s leadership team didn’t have a cohesive strategy.  In fact, the leadership team members all had different strategies, and agendas, and alliances. The group of vastly talented mid-level managers, engineers, developers, and designs spent more time trying to figure out the next steps, and with whom they should align, then execute to a plan and product launches.  The leadership was eventually thrown out and investors took over.  In the tech startup world, it’s a far too familiar story.

So how did my colleagues and I eventually rise to success in a far more difficult environment for starting our own companies?  We each had a well-articulated vision and strategy for our business. I’m not talking about a standard, boring Vision and Mission statement that you throw up on a white board.  I mean a real blueprint for what success looks like:

• Goals
• Strategies
• Measurable Success Criteria

And these were supported by accountability,  great marketing, motivated sales reps, competitive positioning, supportive leaders, and unique value propositions.
As I head to the #HIMSS14 health IT conference today, I’m wondering how many companies spent $500K+ on their booth and parties, but with no clear marketing plan, marketing strategy, or measurable goals.  Those that do articulate the strategy, will certainly have more than a leg up on their competitors.  And they will be poised for success instead of just spending precious marketing dollars.

Author: +Chris Slocumb