Sheila Marcelo's Blog

How do you make decisions with your co-founders and/or management team?

At start-ups, we often have to make quick decisions based on limited data. However, this inherent swiftness can sometimes results in bruised egos, misunderstandings, or misalignments among management team members. As we know, any one of these unintentional results can lead to corporate-wide inefficiency, spinning, and even turfiness.

I've learned through the years that, important as it is to make efficient and sharp decisions, it is equally important to have a plan in place for solving problems. I'm not a big fan of developing process for the sake of having them—too much bureaucracy stifles good business. However, managing expectations in advance on how future decisions will be made results in more long term buy-in and alignment. 

Here's the system I've set up for my team…

Every choice we face falls within one of these categories:

• Type 1: One person serves as decision-maker and can reach a resolution without group input.
• Type 2: The decision-maker takes input from the group, but the ultimate choice is made by this one person.
• Type 3: The group reaches consensus.

This strategy can be applied throughout your organization, from the CEO level to team leaders. When you're able to quickly categorize a particular problem, it's easier to come to a swift and sure resolution. The categorization process usually takes us just a couple minutes to discuss and, afterward, everyone is on board with the direction we're headed.

However, if you regularly find yourself stuck on discussing the decision making process, then there are probably underlying problems with management team communication styles, cultural fit, or shared vision and values in your organization. That's a much bigger problem to tackle and will certainly impact decision making at your company. Take the time to resolve that ASAP, if you can.

My rule of thumb as a CEO or team leader, if you want your Type 1 decisions to be effective, is to make sure to be thoughtful when invoking them. It shouldn't necessarily be carte blanche for enforcing your will; often, it's a much better policy to rely on group input. However, there are some expectations that, as the CEO, you reserve the right for those Type 1 decisions. But if you use it sparingly, your people will know an issue really matters to you when you do!

Cheers,

Sheila

When do you know it's time for a break?

As I’m listening to Sophie B. Hawkins on my iPod, I’m looking at an amazing sunset above the clouds on my way to a conference in Chicago. I don’t think I’ve ever seen such a majestic view—baby blue sky melting into warm, bold red lines over a snow-like covered terrain. Despite my busy schedule, I take pause to appreciate these moments. It is like having a much needed energy drink after a tough work out.

I’ve been traveling non-stop since January of this year and I really, really need a vacation – it’s been about 2 years since my last one! I’m sure many entrepreneurs can relate. But between a grueling work and travel schedule and spending time with family, where do you find time for yourself? We have all heard countless times how important it is, but when do you know that you need a break?

Here’s my own energy check-in that I use to spot when I’m overdue for a break:

Emotional check:

• Am I impatient and irritable?
• Do I over-analyze situations?
• Am I “sweating the small stuff” that I normally ignore?

Mental check:

• Do my kids, husband or close friends have to repeat themselves when they are talking to me? Am I present?
• Do I have difficulty thinking of the right words to express myself?
• Am I more forgetful than usual?

Physical check:

• Am I exhausted by 6 p.m. and can’t wait to get to bed? Or do I have difficulty getting up in the morning?
• Am I finding it hard to fit in the time to stick to my normal workout routine?

Time check:

• Do I constantly feel like I’m running after things or moving too fast? I once read that as a CEO, employees expect you to have a calm gate or pace when you walk and talk.
• Is keeping up with email stressing me out?
• Is it taking me 2 weeks to get back to business contacts or even friends and family?

I’m sure many of you have your own energy test. My advice as a busy entrepreneur is to jot down your own test and check in regularly with yourself. Make sure that you are being honest; it’s the best way to know when you need a break.

Taking my own advice, I’m planning a much needed vacation next month! I’ll commit to blogging about it. Do you have advice for other fellow entrepreneurs on how to renew their energy? Or check list items of your own that you’d like to share?

Cheers,
Sheila

Keeping Employees Engaged During Tough Times

I just got back from an HBS Global Leadership Summit where I listened to some great speakers. I found myself thinking about what things we could be doing with our company and employees during these difficult times. Yes, you should plan on cutting back (See Sequoia’s presentation covered on TechCrunch) to be prudent. But what can you do to inspire “shared ownership” (I’m a big fan of Danny Meyer’s book Setting the Table) so that your employee’s continue to be involved during a crisis? Here’s one thing we asked at our company meeting today: What things are going well at Care.com and what things should we do differently given the economy?

What else could we be doing at our companies during these difficult times?

Cheers,

Sheila