Case1
3. What should Darren Carrol do regarding the potential investment in Protagonist?
One of the primary concerns that Darren and Lilly Ventures currently face is that no other U.S. investors are taking an interest in Protagonist. While they are conducting further research and trying to gauge why other U.S. firms are hesitant to invest, they need to consider if or when they will participate in a syndicate with only the interested Australia VSs they have found so far. Once they establish their own limitations surrounding the investment, they will be able to effectively sort through their options.
Another issue that Darren Carroll mentioned in the case is how the Protagonist investment decision is a reflection of the current problems that Lilly is encountering internally. As they continuosly reevaluate what role Lilly Ventures holds within the company, managers view the group differently as its leadership changes over time. Darren needs to paint a clear picture of what Liloly Ventures can and should be doing, and communicate that with and get buy-in from Lillys management team to create synergies between the two strategic visions.
4. What other recommendations would you have for Darren Carroll?
In addition to improving communications with Lilly‘s corporate management and keeping Lilly Ventures in the line with the company‘s overall strategy, Darren Carroll needs to focus his attention on hiring and retaining the best and most qualified staff. In 2005, Lilly Ventures had lost three key team members due to the chronic challenge of the companys compensation structure. By choosing to remain a part of Lilly‘s compensation system, Lilly Ventures gave up the potential to incentivize high ranking employees, including partners, the way that other VCs could.
Companies try reduce turnover as much as possible, especially when it comes to high-level employees who are inclined to have an in-depth knowledge of business practices, strategic planning, and the future goals of the
One of the primary concerns that Darren and Lilly Ventures currently face is that no other U.S. investors are taking an interest in Protagonist. While they are conducting further research and trying to gauge why other U.S. firms are hesitant to invest, they need to consider if or when they will participate in a syndicate with only the interested Australia VSs they have found so far. Once they establish their own limitations surrounding the investment, they will be able to effectively sort through their options.
Another issue that Darren Carroll mentioned in the case is how the Protagonist investment decision is a reflection of the current problems that Lilly is encountering internally. As they continuosly reevaluate what role Lilly Ventures holds within the company, managers view the group differently as its leadership changes over time. Darren needs to paint a clear picture of what Liloly Ventures can and should be doing, and communicate that with and get buy-in from Lillys management team to create synergies between the two strategic visions.
4. What other recommendations would you have for Darren Carroll?
In addition to improving communications with Lilly‘s corporate management and keeping Lilly Ventures in the line with the company‘s overall strategy, Darren Carroll needs to focus his attention on hiring and retaining the best and most qualified staff. In 2005, Lilly Ventures had lost three key team members due to the chronic challenge of the companys compensation structure. By choosing to remain a part of Lilly‘s compensation system, Lilly Ventures gave up the potential to incentivize high ranking employees, including partners, the way that other VCs could.
Companies try reduce turnover as much as possible, especially when it comes to high-level employees who are inclined to have an in-depth knowledge of business practices, strategic planning, and the future goals of the