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The Entrepreneurial Manager
There are convergent pressures on being an entrepreneur and being a manager as a venture accelerates and grows beyond founder-driven survival. Key to future success is the ability of an entrepreneur to have or develop competencies as an entrepreneurial manager.
Unconventional Wisdom? New CW: Ventures that flourish beyond startup can be headed by entrepreneurs who are also effective managers. .The Entrepreneurial Manager Old CW: A good entrepreneur can’t be a good manager.
. impersonal control.The Entrepreneurial Manager Founders adapt for three key reasons: Shift from creation to exploitation Shift from passionate commitment to dispassionate objectivity Shift from direct personal control to indirect.
most perilous stage. perhaps the most challenging stage. new ventures fail at 60% rate. .Stages of Growth Startup Stage From 2 to 7 years. Maturity Stage Key issue is no longer survival. characterized by efforts of lead entrepreneur. ‘Lemons’ ripen. profitable growth. High-Growth Stage In this. It is steady.
Stages of Growth $100 M+ $50 M $25M Startup $3 M $1 M High Growth Maturity Stability 0 3-4 Time (Years) Crucial Transitions: Sales 0-$3Million Employees 0 to 20-2525-75 Management Mode Doing 10 15 $2-10M $7.5M+ 75-100+ Managing Managing Managers .
The Entrepreneurial Manager Entrepreneurial Culture A common value system Difficult to measure or articulate Belief in and commitment to growth Team feels they’re “in this thing together” Goals and market determine priorities .
.The Entrepreneurial Manager The Fit Concept It is important to have a management team whose skills are complementary.
The Entrepreneurial Manager Entrepreneurship Influence Skills Leadership/vision/influence Helping/coaching and conflict management Teamwork and people management .
Exhibit 7.1 .
2 .Exhibit 7.
3 .Exhibit 7.
ambiguity. and uncertainty Ongoing succession of nonlinear and nonparametric events Inexperience of management team Counterintuitive. unconventional patterns of decision-making Informality and fluidity of organization structure and procedure .Traits Characterizing Rapidly Growing Companies High levels of change.
Exhibit 7.6 .
through management. a climate and spirit conducive to high performance – Ability to understand the relationships among tasks and between the leader and followers – Ability to lead in those situations where it is appropriate .Entrepreneurial Influence Skills Interpersonal/teamwork skills – Ability to create.
ambiguity.Characteristics of Successful Managers Managers skilled in leadership. and influence – Skillful in creating clarity out of confusion. vision. and uncertainty – Able to define adroitly and gain agreement on who has what responsibility and authority – Manage in a way that builds motivation and commitment to cross-departmental and corporate goals. not just parochial interests .
competence. and share power and information – Recognize that high-quality decisions require a rapid flow of information in all directions – Accept that knowledge. generate consensus decisions. logic. and evidence need to prevail over official status or formal rank in organization .Characteristics of Successful Managers Managers skilled at helping. and conflict management – Creatively handle conflicts. coaching.
Characteristics of Successful Managers Managers skilled at teamwork and people management – Encourage innovation and calculated risk rather than by punishing or criticizing whatever is less than perfect – Expect and encourage others to find and correct their own errors and to solve their own problems – Make heroes out of other team members and contributors – Generate trust among colleges and subordinates – Perceived as honest and direct. open and spontaneous .
Other Management Competencies Marketing – – – – – – – – – Market research and evaluation Marketing planning Product pricing Sales management Direct selling Service management Distribution management Product management New product planning .
Other Management Competencies Operations/Production – – – – – – – Manufacturing management Inventory control Cost analysis and control Quality control Production scheduling and flow Purchasing Job evaluation .
accounting.Other Management Competencies Finance – – – – – – – Raising capital Managing cash flow Credit and collection management Short-term financing alternatives Public and private offerings Bookkeeping. and control Other specific skills .
Other Management Competencies Entrepreneurial Management – – – – – – – – Problem solving Communications Planning Decision-making Project management Negotiating Managing outside professionals Personnel administration .
Other Management Competencies Law and Taxes – – – – – – Corporate and securities law Contract law Law relating to patent and proprietary rights Tax law Real estate law Bankruptcy law .
manufacturing. business to government. all via the Internet – Sales. data. and merchandising tools. and process management. marketing. – Financial. – Business to business.Other Management Competencies Information Technology – Information and management systems tools. business to consumer. – Telecommunications and wireless solutions for corporate information. . accounting. and risk analysis and management tools.