In June of 2000, we addressed five critical issues for startups ranging from team issues to strategy and culture development. Underlying our August lessons is the expectation that the senior team discipline itself to go offsite occasionally and have uninterrupted, candid discussions.

FORCE THE UNION OF MARKETING AND TECHNICAL INNOVATION
In the Valley, marketing talent is often very hard to recruit. Most companies begin with a product concept and engineering talent, failing to focus on the product marketing and product management functions. In hindsight, most successful startup execs realize that innovation must begin with marketing - understanding the customers' needs and making clear choices as to product requirements on the front end. Setting this priority significantly reduces time-to-market challenges and paves the way for an effective cross-functional culture.

STRATEGY MUST ENCOMPASS HUMAN RESOURCES
The startup's strategy must include a plan for building a work force capable of taking the "big idea" to market. Such planning requires recruitment of HR leadership with strategic thinking skills and including them on the executive team. HR leadership must understand the company strategy in order to build HR processes and systems which keep the pipeline filled with capable talent in order to meet time-to-market demands.

VALUE DIVERSITY IN STYLE AND FUNCTION
Two mistakes we see most often in startups are the tendencies either to build teams of like styles or to eliminate those who don't fit the norm. Yet, in-depth analysis of successful ventures reveals that cultures which thrive on challenge and openness to different points of view are the most vibrant and results oriented. Valuing differences begins with understanding a range of styles (communication and processing) and developing rules that encourage open, candid and energetic problem solving.

BUILD BOARDS THAT OFFER MORE THAN DOLLARS
No one would deny the valuable role that boards play in a successful startup. Yet, we see a tremendous range in our clients as to how the experience and knowledge of board members is utilized. If you have board members with deep industry knowledge, build them into your strategic planning processes. Think of them as resources as you develop your HR strategies. Use them as mentors for developing executives.