Reza Ari Wibowo

Collaboration will not only break silo within organization, but also improve team member capabilities by learning new things. One important thing here, team leader have to make sure the learning plan of the team member. He or she can provide guidance such as train by him or heraelf, or ask other team member with relevant expertise to train.

Periodical feedback, including informal one, has been increasingly important for the modern Performance Management. In traditional Performance Management, usually team leader needs to wait until one year before providing annual feedbacks. In fact, in some cases many things might have changed and the team leader failed to capture the whole idea. Again, since in the modern Performance Management development & growth is more important than accountability, the team leader should also provide guidance on development and growth plan of his or her team during regular feedback.

In addition to communicating team’s objective and organizational goal, during the initial session, team leader can provide inputs on (1) expectation on role and capabilities, (2) any room for development. Performance Management focus nowadays has been shifted from accountability to development & growth. Therefore, it is important for team leader to brief the team on what capabilities should the team grow. It will also helps when team leader and team member do the regular tracking, either formal or informal.

One of the challenge of using comparables is how to determine appropriate liquidity discount for private company valuations. Some literature suggests 30-50% which negatively impact the valuation output.

Although DCF has been the most powerful approach especially in dealing with an M&A project, it is very challenging to use this method for startup. Yes we are living in a VUCA world. On top of that, startup business is very agile and industry trend changes very rapidly. On top of that, for some businesses it is difficult to find comparables - to calculate Beta, D/E ratio etc. Moreover, in some cases, many startups are still projecting strong growth in the 10th year, therefore the projection needa to be adjusted for another 5 years, which mean it is more difficult to predict and validate.

After all, after doing valuations, someone might tend to determine valuation output based on his/hwr subjective judgment or “sense”. That is why many people says “valuation is a combination between art and science”.