Knowing when to change gear

This approach of moving from a light project management approach to a more intensive project management style is not typical. Most project management approaches assume that resource is neutral without distinguishing whether it is internal or external resource. Most will apply similar stage-gates at the start of the project as at the end and look for a positive business case to move from one stage to the next. KT 2.0 conversely must be able to move from a hands-off approach to a hands-on approach. It distinguishes between internal and external resource, and it is more reliant on external validations and faith than on internal business case assessment. This presents novel challenges for the project management process.

If the consultant is not expecting this potential change in gear, they may get used to calling the shots as a lone wolf, and may be disconcerted by efforts to 'control' projects as they appear to be moving towards success. It is, therefore, important to:

Set Expectations (see 'Rules of the game for your external partner')
Establish milestones - need to set triggers early on that anticipate or reflect likely value inflection points
Ensure that they understand the need to work for the university contractually, and by aligning equity interests.

Milestone setting and monitoring

The starting point is to set out a clear initial set of milestones and triggers in the initial consultancy contract with any external entrepreneur. This may include the initial goals and activities against which payment will be made; points at which the consultant will provide reports; and triggers that will move the project to a new level. Crucial amongst this are those events and steps that look like the project is moving toward 'heads of terms' with a third party or a move into exclusivity, or simply the possibility of realising a target for the next-step funding.

The entrepreneur-consultant is likely to have greater contact with the academic inventor, founder team or research team, and the KTO will not have resource nor, possibly, the desire to attend all of the project meetings. Making sure that project management or team meeting notes are made available to the KTO via an online project management service like Manymoon is a useful alternative approach. Using Toms Planner or similar to set out an initial Gantt, based on the contract, will allow the KTO to monitor progress. Consider making this a contractual obligation and ensure that the consultant uses this.

The appointment of a 'case manager' and setting out and documenting the virtual team and roles (even if that means that some will play a low profile for a while) is an important step. Each and every project, even early-stage projects, must have a case manager within the KTO that is the touch point for all of the above. It is the case manager's responsibility to monitor and detect a shift in gear, and the likely need to step-up engagement. It is not their role to substitute for the project management that should be brought to the venture by the consultant. However the case manager should assist the project manager, the consultant, in assembling the right team at the right time. Experience tends to show that projects work best when the case manager does not act as a dilettante business development manager, attempting to double up or substitute for the role that should be played by the entrepreneur-consultant. Nor should internal case managers be allowed tendencies to hog projects that are looking good.

Ensuring that the university remains in the driving seat

In additional to setting expectation and roles, and on top of online monitoring, the most effective way to ensure that the chauffeur does not run off with the car is to align the long-term interests of the entrepreneur-consultant with those of the university. Equity and option schemes are the most obvious way of doing this, or, in the instance of royalties, a share structure.

Make sure that the entrepreneur- consultant understands the parameters
Make sure that any efforts to enhance any non-university shareholdings also dilute the consultants share too
Make sure that an element of the equity is option based, post company formation
Make sure that there is no obvious misalignment of return policy between the royalty share and the equity routes

Look out for a tendency for the Consultant to:

Want to incorporate for the sake of it
Want to avoid share options vested against targets
Draw-down large fees in the early stage of business trading