Key Functional Roles in a Startup
A mistake that most startup founders make is arbitrarily assigning roles and tasks based on perceived seniority or how interesting different titles look on their LinkedIn profiles. After having interacted with and consulted for many startups and businesses, the importance of certain functional roles became apparent.
Firstly, it is important to ensure that founders have a solid understanding of the key factors that could make or break their business. This includes aspects like product details, funding, time to launch, partnerships, market research etc. These key factors are very similar when considering business in general but their importance varies greatly based on the project, the team and the circumstances under which the idea was conceived.
After having a solid understanding of the drivers of success of the project, the next key step is ensuring that each person on the team is given a role that plays to their strengths to ensure they will be as effective as possible during the time they spend on the project.
That being said, here are a few key roles that can influence your framework of choosing key leadership roles for your startup:
CEO
He/She is essentially the visionary and usually the person who conceived the idea. The CEO needs to think strategically to make key decisions about the direction of the company. They will be the face of the company and lead fundraising efforts so they need to be well spoken and be able to sell the idea to potential customers and important partners.
If the startup does not have a Business Development Manager, the CEO also claims this role and works with other leaders in the company to draw out a path to profitability, growth, expansion etc.
Lastly , the CEO is an integral part of any project and should be well aware of the high level progress of the project and ensure alignment with the company's overall objectives and mission.
CTO
The person who holds this position is essentially a ‘tech head’ who must be well researched in the relevant engineering and science fields that are related to the project. The CTO has to offer solutions that will provide a world class product no matter how small the company is. Best practices of different technologies need to be followed to avoid unneccessary bugs and to ensure that the output products are of the best quality.
Project Manager
This role is usually carried by either the CEO or the CTO but based on experience, not having a structured project management system in place often delays the product’s time to market and often results in products that do not meet market requirements.
The product manager should have a solid understanding of the technology used in developing the product, as well as a solid understanding of the target market. The project manager essentially drives the effort of the team to ensure that the product that is delivered is of enough value to the customers and is delivered at the right time. The product manager is often also responsible for the subsequent iterations of the product as it is refined.
A key takeaway is that the project manager role is essential to the success of the project. Carefully consider the project management strategy you will follow as an organisation and ensure that it is implemented optimally.
Sales and Marketing Lead
Having a talented person to lead the sales and marketing efforts is essential to the success of any business that requires revenue to thrive. The sales lead should work in conjunction with the project manager to ensure that the product that the team is spending time on is the product that the target market wants. This is another make or break role for any startup.
HR
Depending on the size of the team, HR representatives are crucial in ensuring that everyone on the team is lifting their weight and a little bit more. Conflict resolution skills are also incredibly important because disagreements are bound to come up when different minds are working on building complex systems. For smaller companies, setting up a company culture is also important and the aim is to ensure that workers are as motivated and productive as possible. Avoid unnecessary bureaucracy but ensure team mates are kept responsible for certain aspects of the project or the business, depending on their role.
The difference between the productivity of good engineers and average engineers can be astronomical so it is essential to ensure that the best talent is brought to the team when it is time to hire.
Other Key Roles
Apart from these roles, other important roles include Legal Counsel, Customer Support Lead, User Experience and UI lead etc. The importance of these roles will vary from one business to another and will depend on the stage the business is in.
In conclusion, the roles outlined above will determine the success of your startup or business and each leader should know their responsibilities, scope, when to defer to other leaders and how to work with other functional leaders to produce the desired outcome.
Golden Arc Consulting
