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S03 - RightNow Technologies HBS 9-805-032 1. Evaluate the startup of RightNow Technologies in light of: (a) Kawasaki‟s “top five things an entrepreneur must accomplish”; and (b) the concepts of the “Lean Startup” as outlined in the articles by Blank (hypothesis testing, experimentation, customer feedback, iterative design and agile development) and Eisenmann et al (managing uncertainty: minimum viable products, staging, and transferring risk to partners). Looking back from the perspective of December 2003, how closely did Gianforte‟s approach to the startup conform to these concepts and guidelines? Where did it differ? What were the implications? 2. Consider RightNow Technologies‟ growth trajectory in the light of the models of organizational growth and evolution: (a) did RightNow‟s growth pattern conform more closely to that of a rocket ship, a gazelle or a turtle? (b) at which stage of development would you place them in the Flamholtz framework? Why? (c) at which phase of development would you place them in Greiner‟s model? Why? 3. How successful were Gianforte and his team in clearing each of the eight hurdles of the period of transition? Evaluate the company‟s current state with respect to each of the eight hurdles. 4. The case points out that Gianforte was a proselytizer for bootstrapping. Analysis of the financial statements (Exhibit 2) suggests that during the period of rapid growth in 2000-2001, the company‟s operating expenses ballooned out of control, triggering a retrenchment and reevaluation of strategy. Based on the information in the case, to what extent did RightNow Technologies conform to the guidelines and recommendations provided by Kawasaki (Ch 5) and Cornwall (Ch 2-3)? 5. What do you think Gianforte recommended to his board at the end of the case? Why? (Consider the estimated market valuations of the various options using data from the exhibits).
ANSWERS
Kawasaki‟s “top five things an entrepreneur must accomplish”
ANSWERS
Kawasaki‟s “top five things an entrepreneur must accomplish”