Transitioning to a team approach

At the appropriate time, if things are going well, the university will need to build a team around the consultant or deal maker. The consultant needs to be prepared for this and to have their expectations set regarding this transition and the rationale for it. This is the point of the section 'Rules of the game - external partner'.

Moreover, the consultant is not an employee or even a representative of the university. They will not have authority to commit to deals or bind the university to exclusivity or 'head of terms' (Heads of terms are short documents setting out the main agreed terms between parties in a commercial transaction). Also, they may not fully understand the procedures required by the university.

This is not about reasserting control. It is simply because this is when the proto-venture needs all hands on deck.

'Entrepreneurship is management: A start-up is an institution, not just a product, so it requires management, a new kind of management specifically geared to its context'

Eric Ries

It also does not solely apply to deals that might result in spin-outs. If the end-point is a licence deal or some hybrid, potentially including elements of a licence, research collaboration and potential company creation, then it still needs to be carefully managed. If anything, the internal resource that may have been freed-up by adopting a KT 2.0 approach, is best reserved for activity designed to:

• Maximise the deal, focusing on negotiation preparation and tactics
• Secure the best structure, obtaining corporate finance and tax advice
• Ensure that any deal achieved is monitored, managed and policed