ENTREPRENEURIAL LEADERSHIP

Learning objectives

To give brief introduction of entrepreneurship and leadership. To give know how about the successful entrepreneurs. To explain the role of entrepreneurs as a leader.

To explain the role of entrepreneurial leadership.

How we can construct entrepreneurial culture.

Entrepreneur & Entrepreneurship?

An entrepreneur is an individual who owns a firm, business, or venture, and is responsible for its development. Entrepreneurship is the practice of starting a new business or reviving an existing business, in order to capitalize on new found opportunities.

Successful Entrepreneurs
There are six dominant themes for successful entrepreneurs: Leaderships Commitment and determination Opportunity obsession Tolerance of risk, ambiguity and uncertainty Creativity self reliance and ability to adapt. Motivation to excel.

Who is leader.?

Someone who can influence others and who has managerial authority or A leader is a person who can influence or motivate others to do what he wants them to do.

(Burns, 2007)

What is leadership.?

The process of influencing a group towards the achievement of goals.

Leadership is the art of motivating a group of people to act towards to achieving a common goal.
(Burns, 2007)

Food for Thought

An entrepreneur who starts his own business generally

does so because he is a difficult employee.

He is probably finds it difficult to be in the alternating

dominant and then submissive role so often asked of management.

He also believes he can do the job better than others, which

may be true BUT..

(Burns, 2007)

Food for Thought

He must find a way of working with and through

others if the business is to grow.

And here the person must start to make a transition

from being a mere entrepreneur to a leader.

(Burns, 2007)

Entrepreneurial Leadership

Entrepreneurial leadership is about systematic and purposeful development of leadership skills and techniques which can take a long time. It is about the developing relationships. It is about creating long term sustainable competitive advantage based upon architecture of entrepreneurial leadership.

(Burns, 2007)

Creating an agenda

Management vs. Planning Leadership Establishing direction, and budgeting,

establishing detailed steps and timetables for achieving needed results and allocating resources accordingly Organizing and staffing, establishing some structure for accomplishing plan requirements, staffing, delegating responsibilities, providing policies, and creating monitoring systems

developing a vision of the future, often the distant future and strategies for producing the changes needed to achieve vision Aligning people, communicating the directions and accept their validity

Developing a human network for achieving the agenda

Execution

Controlling and problem solving, Motivating and inspiring, monitoring results and plans in energizing people to overcome some detail, identifying and barriers by satisfying their needs solving problems Producing a degree of predictability and order, consistent production of expected results Producing change, often to dramatic degree, potential to produce extremely useful change
(Timmons,

Outcomes

Role of Entrepreneurs as a leader

A successful entrepreneurs are patient leaders, capable of instilling tangible visions and managing for the long haul. There five elements include in the job for leader: Having vision and ideas. Being able to undertake long term strategic planning. Being able to communicate effectively. Creating an appropriate culture within the firm Monitoring and controlling performance. Having the courage to delegate Controlling the business by monitoring information rather than by direct physical intervention.
(Burns, 2007)

Role of Entrepreneurs as a leader

An entrepreneur must change his role towards these

FUNCTIONAL disciplines i.e

Marketing Accounting People Management all change

In other words the business needs to become more formal

without becoming more bureaucratic.

(Burns, 2007)

Role of Entrepreneurs as a leader

So the challenge is not only in developing the

business but also to cope with the managerial change facing the founder.
Having your own vision is relatively easy. Building a

shared vision is no easy task.

The challenge for an entrepreneur is to convert the

contractual employee of an economic entity into committed member of a purposeful organization.

(Burns, 2007)

Role of Entrepreneurial Leadership

The primary role of good entrepreneurial leader is to build an entrepreneurial architecture. The entrepreneurial architecture creates with in the organization the knowledge and routines that allow it to respond flexibly to change and opportunity in the way the entrepreneur does. It is a very real and valuable asset that creates that creates competitive advantage and can be sustained

(Burns, 2007)

Three Principles of Entrepreneurial Leadership

Treat others as you would want to be treated Share the wealth that is created with all those who have

contributed to it at all levels

Give back to the community

(Timmons, 2008)

Challenges for entrepreneur during growth of firm

Growth through creativity

Crises of Leadership Crises of autonomy

Growth through direction Growth through delegation

Crises of control

Growth through coordination

Crises of red tape

Collaboration
(Burns, 2007)

Entrepreneurial Organization structure

Spiders Web

Spiders Web Grows

(Burns, 2007)

Entrepreneurial Organization structure

Hierarchical Structure

Matrix Structure

(Burns, 2007)

Churchil and Lewis Growth Model

Disengagement

Growth

Existence

Success

Maturity

Survival

Take off

(Burns, 2007)

How can a Entrepreneur Lead?

A Entrepreneur can lead through three different

ways/Styles

Leader and Task Leader and Group Leader and Situation

(Burns, 2007)

Leader and Task University of Michigan

Employee-oriented: Emphasize interpersonal relations Production-oriented: Emphasize the technical or task aspects of the job

(Burns, 2007)

University of Michigan
Research findings:
Leaders

who are employee oriented are strongly associated with high group productivity and high job satisfaction.

(Burns, 2007)

Managerial Grid
Appraises leadership styles using two dimensions

Concern for People: Measured leaders concern for subordinates on a scale of 1-9 (low to high) Concern for Production: Measured leaders concern for getting job done on a scale of 1-9 (low to high)
(Burns, 2007)

The Managerial Grid

(1,9) (9,9)

9 8
Concern for People

7 6 5 4 3 2
(5,5) Impoverished Management

Exertion of minimum effort to get required work done is appropriate to sustain organizational membership
(1,1)

(9,1)

9
(Burns, 2007)

Concern for Production

The Managerial Grid

(1,9) (9,9)

9 8
Concern for People

7 6 5 4 3 2
(5,5) Task Management

Efficiency in operations results in the accomplishment of work in Such a way that there is minimum Interfere of human elements
(1,1)

(9,1)

9
(Burns, 2007)

Concern for Production

Middle of the road The Managerial GridManagement Adequate organizational performance

(1,9)

9 8
Concern for People

7 6 5 4 3 2

Is possible through balancing the necessity to get out work with maintaining morale of the people At a satisfactory level

(9,9)

(5,5)

(1,1)

(9,1)

9
(Burns, 2007)

Concern for Production

The Managerial GridManagement Country Club

(1,9)

9 8
Concern for People

7 6 5 4 3 2

Thought full attention to needs of people for satisfying relationship leads to a comfortable friendly organizational atmosphere & work tempo
(5,5)

(9,9)

(1,1)

(9,1)

9
(Burns, 2007)

Concern for Production

The Managerial Grid

(1,9)

9 8
Concern for People

Team Management
Work accomplished is from committed people, Interdependence through common stake in organizational purpose leads to relationship of trust and respect
(5,5)

(9,9)

7 6 5 4 3 2

(1,1)

(9,1)

9
(Burns, 2007)

Concern for Production

Leader and Group

High Group autonomy in decisionmaking

Participativ e Paternalisti c
Low Leader Authority

Consultativ e

Autocratic
High

Low

(Burns, 2007)

Leader and Situation

Must move away from using autocratic/ dictatorial

leadership style
Must be adept at using informal influence Must be adept at conflict resolution

(Burns, 2007)

Strategic Planning Process

Vision Strategic Analysis The organization( strengths and Weaknesses) The environment (opportunities and Threats) Strategy Formulation Identify Strategic Options Evaluate options Select Strategy

Feedback Loops

Strategy Implementation Leading and Managing Change Organization Structure and Culture Planning and Allocating Resources

(Burns, 2007)

Constructing an Entrepreneurial culture

Hofstede (1990) explain different dimensions of organizational culture in an attempt to discriminate between entrepreneurial and administrative organizations. Timmons, Peters (1997) and Cornwall and Perlman (1990) explain tits following elements: People and empowerment focus Commitment and personal responsibility Doing the right thing Value creation through innovation and change Hands on management Freedom to grow and fail Attention to basics Emphasis on future and sense of urgency.
(Burns, 2007)

Remember

Management is doing things right; Leadership is doing the right things Peter F. Drucker