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LINDAA.CYRMICHAELJ.ROBERTSMarkPittsHARVARDBUSINESSSCHOOL9-801-414REV:MAY22,2002ThePeoplestreetteamwasquicklycomingtogether,butCEOAlperCaglayanstillneededtofilltheroleofVicePresidentofBusinessDevelopment.ItwasApril2000,andPeoplestreetwasbarely3monthsold.Peoplestreethaddevelopedameansofallowingindividualstomaintaintheircontactinformationinasecurewebsite.Whenevertheircontactinformationchanged-anewjob,phonenumber,oraddress,forinstance-usersofPeoplestreet'sservicecouldpublishthatinformationtoalloftheircontactswhohadsubscribedtoPeoplestreet.Inessence,thetechnologyallowedindividualstocreateelectronicbusinesscards(calledLiveCards)thatcouldconstantlyandautomaticallyupdatethemselves.Additionally,userscouldallowbusinessestocontactthemthroughPeoplestreet,thusavoidingtheneedforupdatingpostaladdressesanddealingwithpapermail.PeoplestreetwasoneofthefirstfirmstobeincubatedbyCambridgeIncubator,ayear-oldbusinessincubatorlocatedinCambridge,MAnearMIT.CambridgeIncubator(CI)offeredawidearrayofservicestoitsmembercompanies,includinghumanresourceandrecruitingservices.Thus,Caglayan'staskwasmadesomewhateasierbythehelphewasreceivingfromLynnDunphy,aseniorrecruiterandpartofCI'sTalentAcquisitionGroup(TAG).DunphyhadhelpedCaglayandevelopapositiondescription,placedadsforthejob,siftedthroughcoverlettersandresumes,conductedphoneinterviews,anddistilledthepooldowntoseveralcandidateswhomshehadinterviewed.Followingthefirstroundofinterviews,Dunphyhadalsosolicitedtheassistanceoftwootherhiringexpertsinthefieldtointerviewtheleadingcandidateforthejob,MarkPitts.CaglayanneededtosortthroughtheabundanceofdatatheyhadcollectedanddecidewhetherornotPittswastherightpersonforthejob.PeoplestreetPeoplestreetformallyjoinedCambridgeIncubatorinFebruary2000.PeoplestreetwasthebrainchildofAndreMorkel,whofirstapproachedtheIncubatorwiththeideainNovember1999andspentseveralmonthsattheIncubatordevelopingtheidea.TheIncubatorworkedwithMorkeltofindaCEOtoheadtheventure.Thesearchwentmorequicklythananticipated,andonMarch1,2000AlperCaglayanwasbroughtonboardasCEO.PeoplestreetwasCaglayan'sthirdstart-up.PriortohisroleatPeoplestreet,CaglayanwasChiefStrategyOfficerforBowneInternetSolutionsandhadfoundedtwocompaniesincludingOpenSesamewhichwassubsequentlysoldtoAllaireProfessorLindaA.CyrandSeniorLecturerMichaelJ.RobertspreparedthiscasewithassistancefromSarahG.Matthews.ThiscaseisintendedtobeusedwithCaseVideo802-801.HBScasesaredevelopedsolelyasthebasisforclassdiscussion.Casesarenotintendedtoserveasendorsements,sourcesofprimarydata,orillustrationsofeffectiveorineffectivemanagement.Copyright©2001PresidentandFellowsofHarvardCollege.Toordercopiesorrequestpermissiontoreproducematerials,call1-800-545-7685,writeHarvardBusinessSchoolPublishing,Boston,MA02163,orgoto:IseePeoplestreetasavehicletoenablepeopletokeepintouchwithbusinessandpersonalcontacts.Inessence,ourgoalistoprovideinfrastructuretomanagerelationships.Peoplestreetbusinessparh1ersandcustomersgainapowerfulnewcustomeracquisitionandretentiontoolbecausecustomercontactandaccountinformationisalwaysuptodate.Forexample,businesscustomerswillbeabletopublishtoindividualsemailversionsofpromotionaloffers(e.g.,postingstofrequentflyerprograms)andupdatesofaccountinformation.Bysettingthischannelforregularcontactwithconsumers,wearecreatingavirtualenvelopethatourpartnersandcustomerscanstuff.Atthesametime,individuals.willmaintaintheflexibilityandcontroltodeterminewhogainsaccesstothevariouslevelsoftheirpersonalcontactinformation.IfPeoplestreetcanexcelatthisservice,itwillsetanewstandardforvirtualcommunications.HiringaVPofBusinessDevelopmentSoonafterCaglayansignedonasCEO,herealizedthatheneededtoquicklymakethreekeyhires:VPofMarketing,VPofEngineering,andVPofBusinessDevelopment.OneofthemostvaluableservicesthatCambridgeIncubatorofferedtoitsmembercompanieswasrecruiting.ThejobmarketintheBostonareain2000was,inthewordsofoneCIexecutive,horrendous:Theaveragetechpersonstaysonthejobelevenmonths.FortheInternetjobmarketingeneral,peoplechangeonaverageeveryeighteenmonths.Compensationisgoingthroughtheroof;itoftenseemsthattheonlythingpeoplecareaboutiswhatyouwillpaytogetthem