1. Entrepreneurial Leadership
Prof. Dr. Zaidatol Akmaliah Lope Pihie.
Faculty of Educational Studies
University Putra Malaysia

2. Transformational Leadership
Transactional
Technical
Emphasis shifts to different leadership capabilities as individuals move up the organizational hierarchy

3. Transactional/situational versus transformational leadership
Critical Differences
Transactional/ Situational
Transformational
Leader adapts to various situations
Organization adapts
Focus is on day-to-day activities
Focus is on the organization, not the individual
Development of task and people behaviors
Consistency, not adaptability
Situational analysis decides emphasis
Symbolic influence
Strategic emphasis
Transactional/situational versus transformational leadership

4. Visionary Leadership Transformational Entrepreneurial
Focus on the organization
Focus on the opportunity
Changing attitudes
Finding like-minded people
Focus on change
Focus on building/creating
Passion
A stake in the ground
A moving stake
Creative rearrangement
Creative destruction/rearrangement
Committed investment
Staged investment
Symbolic communications
Intimate, personal communications
Long-term, stay the course
Medium-term, exit strategy
Similarities and differences between transformational and entrepreneurial leadership

5. Corporate Entrepreneurship Behaviors
Efficiently gets proposed actions into practice
Devotes time to helping others to find ways to improve products and services
Displays an enthusiasm for acquiring skills
Goes to bat for the good ideas of others
Quickly changes course of action when results aren't being achieved.
Boldly moves ahead with a promising new approach when others might be more cautious
Encourages other to take the initiative for their own ideas
Vividly describes how things could be in the future and what is needed to get there
Inspires other to think about their work in new and stimulating ways
Gets people to rally together to meet a challenge
Creates an environment where people get excited about making improvements
Entrepreneurial leadership qualities identified

6. The Entrepreneurial Mindset (involved 10 qualities)
Internal locus of control
Tolerance for ambiguity
Willingness to hire people smarter than oneself
A consistent drive to create, build or change things
Passion for an opportunity
A sense of urgency
Perseverance
Resilience
Optimism
Sense of humor about oneself

7. Internal Locus Of Control
Fancy term often used by psychologist to describe a person’s attitude towards his external environment.
Most successful entrepreneurial leaders have a strong internal locus control.
They see themselves, rightly or wrongly, as determining much of their own fate.
This internal locus control lead them to believe that they can make things happen, that they can overcome obstacles and convince or neutralize naysayers.

8. An internal locus control is not the same thing as personal confidence
This mindset extremely functional for entrepreneurial leaders in large organizations, since it causes them to believe that they can outwit, outsmart, outmaneuver, and outrun their own organization’s bureaucracy.
Most successful entrepreneurial leaders have a strong internal locus of control. They have the power to make things happen, that they are more in control then controlled.

9. Tolerance for Ambiguity
Opportunity identification, development, and capturing a significant new business opportunity is a messy affair.
Some people would have been unable to cope with this kind of chaos and uncertainty.
The old saying “If you can’t handle the heat, stay out of the kitchen” is aptly restated for entrepreneurial leaders.
For the right person, this is the fun, it’s the adrenaline rush that causes the entrepreneurial leader to seek out new opportunity time after time.

10. Willingness to Hire People Smarter Than Oneself
It is the willingness of successful entrepreneurs to hire people smarter than themselves.
By smarter, not necessarily mean people with higher IQs, but rather that this trait encompasses and ability to recognize personal limitations and a willingness to bring in people who are much more knowledgeable about different aspects of the business.
Many people in existing organizations are frightened or intimidated by having people working for them who know more than they do.
The business would never grow beyond their own capabilities if they did not “hire higher”.

11. A Consistent Drive to Create, Build or Change Things
Notice that “love of money” is not one of the aspects of an entrepreneurial mindset.
Money is important, but the real drive is the creation of something that is a reflection of the individual and his or her potential legacy. If it works well, the money follows.
Many entrepreneurial leaders succeed not by building or creating things from scratch but from changing things.
They see opportunities to make existing products, services, or companies better.
They can be more innovators than creators, but they are not satisfied with the status quo.

12. Passion for an Opportunity
Perhaps the most enigmatic characteristic of the entrepreneurial mindset may not be a characteristic or mindset at all, but an “emotional” set.
Entrepreneurial leaders have a strong passion for their idea or opportunity.
In large corporations, it is quite usual to find unimpassioned managers who often shepherd the desires and wishes of others.
The development of this passion is one of the biggest challenges that large companies face in trying to rekindle their entrepreneurial spirit.

13. A sense of Urgency
Sometimes described as impatience, also accompanies the entrepreneurial mindset.
Entrepreneurial leaders are described as wanting to get on with it. They push to meet or beat deadlines.
This sense of urgency is driven by both the desire to see their idea come to fruition and a fear that, if they don’t act first, they miss their window of opportunity-a competitor or rival might get there first and end their dream.
The entrepreneurial leader’s sense of urgency is born from an inward drive. Their deadline are self-imposed: the cash might run out, a customer might be lost, someone has to constantly mind the store

14. Perseverance
Perseverance is a by-product of some of the other mindset characteristics. If you love your idea, then it is likely that you will have the drive to see it through. If you have a sense of urgency, and fear the consequences of not getting there first , then you will be spurred to stay the course.
Perseverance is also a by-product of having an internal locus of control.
Because successful entrepreneurial leaders believe they can make it happen, they believe that all they have to do is stick to it long enough and they will realize their dream.
This perseverance is not generalized, but rather opportunity-specific. They may not persevere in all aspects of their life, but they certainly do so with ideas about which they feel passionate.
Many entrepreneurial leaders with whom we have worked can be nonfinishers in other aspects of their lives, but they are typically slaves to their beloved business ideas.

15. Resilience
Many entrepreneurial leaders fail in their first attempts to sell the organization on their ideas but they keep going.
This resilience factor is very important.
People who take themselves too seriously, are perfectionists to a fault, and beat themselves mercilessly for making a minor mistake don’t usually make good entrepreneurial leaders.
Leading like an entrepreneur requires an acceptance for making mistakes- but not for making the same mistake twice.

16. Optimism
Successful entrepreneurial leaders are optimistic about their potential success of their opportunity.
They truly believe in it, they don’t think anything will stop them, and they know they are resilient enough to overcome obstacles and setbacks.
The optimism is a very valuable currency when selling their ideas to others.

17. Sense of Humor about Oneself
Most of us enjoy someone with a sense of humor, but this trait is extremely important and functional for entrepreneurial leaders. Following the opportunity process is messy. We don’t know if an idea is an opportunity until we dig into it. As we dig, we learn. We realize that what we though we knew about the opportunity isn’t quite accurate.
We make mistakes, take wrong turns, back up and take another direction, and often have to admit our own mistakes and omissions.
If entrepreneurial leaders take themselves too seriously, then they don’t recover well emotionally from these missteps.
They need a healthy ability to fall down, get up, dust themselves off, look in the mirror, and have a good laugh at how silly they look.

18. Focusing Entrepreneurial Energy
Internal
External
Miners
(Operational)
Explorers
(Market)
Accelerators
(Unit)
Integrators
(Enterprise)
Activist
Catalyst
Entrepreneurial leadership focus and roles

19. Explorers: Market-focused leadership
Explorers are involved in value-creating events and activities that are aimed primarily at the development of new markets, new products and services, or both.
They also can be involved in creating a new business model for delivering current products and services that is so unique that it results in significant growth and profitability for their company.
As mention earlier, we call them explorers because they often are working in uncharted territory, which has an inherently higher risk profile than the base business.
Since the risk of failure is higher, the organization expects either higher returns or tries to manage risks appropriately by using a staged, rather than capital investment approach.

20. Focusing Entrepreneurial Energy
Internal
External
Miners
(Operational)
Explorers
(Market)
Accelerators
(Unit)
Integrators
(Enterprise)
Activist
Catalyst
Explorers are often the most sought-after type of entrepreneurial leader.

21. Miners: Operationally Focused Entrepreneurial Leaders
They demonstrate the same kind of leadership, but they typically focus their entrepreneurial energy on internal operations.
They reconfigure current assets in ways that create new value propositions for the company’s customers, thus resulting in growth of the business.
Operationally focused miners enjoy the shell game. They like to creatively move assets around or out of the organization. they do not see the ownership or increase of assets necessarily as a good thing. They actually like doing more with less to prove their cleverness.
Many good examples exits of entrepreneurial leaders rearranging their organization’s value chain to create significant new value – while along the way also changing the rules of competitive engagement in ways that give the innovative company significant competitive advantage. IKEA’s founder, Ingvar Kampsraad, is one such example.

22. Focusing Entrepreneurial Energy
Internal
External
Miners
(Operational)
Explorers
(Market)
Accelerators
(Unit)
Integrators
(Enterprise)
Activist
Catalyst
Miners- operationally focused entrepreneurial leaders.

23. Accelerators: Unit-Focused Entrepreneurial Leaders
“Accelerators” are generally internally focused and catalytic, and they usually manage a unit, division, or branch of the business.
Accelerators wants their employees to argue with them and to challenge current ways of doing business. Their goal is to literally accelerate innovation in their particular area or department.
They look to their employees for the development of novel ideas, and try to create a culture in which people are rewarded for trying new and different things, not punished for making mistakes in the learning process.
Accelerators are focused on two types of value creation, so they try hard to engage their employees in the process. They focus on economic value creation , as do all our entrepreneurial leaders but, more important, they focus on the creation of the human value and behaviors that lead to economic value.

24. They encourage their people to learn new skills and try different things-knowing that mistakes always happen in the learning process. Acceleration often shield their people from the bureaucracy, knowing that they themselves are taking a personal risk in the process.
Acceleration view their roles as coaches and catalysts in freeing the creative potential of their employees. They are not afraid to hire people who are smarter than themselves and even perhaps somewhat rebellious, thus allowing for the possibility of quantum leaps in their department or area. Although they are good coaches, they are also very good at getting their employees to accept both responsibility. They know that getting their people to act in more entrepreneurial ways requires both support and personal accountability.
Because acceleration are often unit heads, they can be found in line or staff positions. They don’t focus on specific opportunities, as explorers and miners do. Rather, they focus on a long-term approach to fostering a climate of innovation and entrepreneurial thinking that they believe will provide the seedbed for identifying, developing, and capturing serial opportunities.

25. Focusing Entrepreneurial Energy
Internal
External
Miners
(Operational)
Explorers
(Market)
Accelerators
(Unit)
Integrators
(Enterprise)
Activist
Catalyst
Accelerators are internally focused catalysts for change.

26. Integrators: Enterprise-Focused Entrepreneurial Leadership
Integrators are entrepreneurial leaders at the enterprise level who focus on the total organization or a major part of it. Their goal is to not only create an entrepreneurial strategy for the business but to develop the people, structures, processes, and culture that support this strategy. They are highly focused on the marketplace, yet also create the organizational architecture for opportunism.
These structures can stay informal or, over time, can become formalized. Creating this type of architecture typically helps the integrator bypass the unnecessary rules, regulations, and bureaucratic nonsense that inhibit creative thinking and acting from an enterprise-wide perspective. They understand the important of procuring funds and other resources outside the normal channels.
Integrators also look for individuals like themselves, who have either latent or obvious entrepreneurial characteristics.
They tend to hire or connect to key players as much on personality as on credentials or resumes. They know that all opportunities require learning and that mistakes always happen during the learning process.

27. Focusing Entrepreneurial Energy
Internal
External
Miners
(Operational)
Explorers
(Market)
Accelerators
(Unit)
Integrators
(Enterprise)
Activist
Catalyst
Integrators are externally focused catalysts for change within the enterprise

28. POWER Prof. Dr. Zaidatol Akmaliah Lope Pihie.
Faculty of Educational Studies
University Putra Malaysia

29. Bases of Power Legitimate Power Reward Power
Is power that is granted by virtue of one’s position in the organization
Reward Power
Is the extent to which a person controls rewards that another person values

30. Coercive Power Expert Power Referent Power
Is the extent to which a person has the ability to punish or physically or psychologically harm someone else.
Expert Power
Is the extent to which a person controls information that is valuable to someone else.
Referent Power
Exists when one person wants to be like or imitates someone else.

31. Position Versus Personal Power
Position Power
Resides in the position, regardless of who is filling that position.
Personal Power
Resides in the person, regardless of the position being filled.

32. Position Power and Personal Power
High
Moderate Overall Power
Strongest Overall Power
Weakest Overall Power
Position Power
Low
High
Personal Power

33. Uses and Outcomes of Power
Source of Leader Influence
Types of Outcome
Commitment
Compliance
Resistance
Referent Power
Likely – if request is believed to be important to leader.
Possible – if request is perceived to be unimportant to leader.
Possible – if request is for something that will bring harm to leader
Expert Power
Likely – if request is persuasive and subordinates share leader’s task goals
Possible – if request is persuasive but subordinates are apathetic about leader’s task goals
Possible – if leader is arrogant and insulting, or subordinates oppose task goals

34. Source of Leader Influence
Types of Outcome
Commitment
Compliance
Resistance
Legitimate Power
Possible – if request is polite and very appropriate
Likely – if request or order is seen as legitimate
Possible – if arrogant demands are made or request does not appear proper
Reward Power
Possible – if used in a subtle, very personal way
Likely – if used in a mechanical, impersonal way
Possible – if used in a manipulative, arrogant way
Coercive Power
Very unlikely
Possible – if used in a helpful, nonpunitive way
Likely – if used in a hostile or manipulative way

35. Guidelines for Using Power
Treat subordinate fairly
Defend subordinates’ interests
Be sensitive to subordinates’ needs, feelings
Select subordinates similar to oneself
Engage in role modeling
Referent Power
Promote image of expertise
Maintain credibility
Act confident and decisive
Keep informed
Recognize employee concerns
Avoid threatening subordinates’ self-esteem
Expert Power
Be cordial and polite
Be confident
Be clear and follow up to verify understanding
Make sure request is appropriate
Explain reasons for request
Follow proper channels
Exercise power regularly
Enforce compliance
Be sensitive to subordinates‘ concerns
Legitimate Power

36. Reward Power Coercive Power Verify compliance
Make feasible, reasonable requests
Make only ethical, proper requests
Offer rewards desire by subordinates
Offer only credible rewards
Reward Power
Inform subordinates of rules and penalties
Warn before punishing
Administer punishment consistently and uniformly
Understand the situation before acting
Maintain credibility
Fit punishment to the infraction
Punish in private
Coercive Power

37. Summary of Key Points
Power is the potential ability of a person or group to exercise control over another person or group.
The five bases of power are legitimate power (granted by virtue of one’s position in the organization), reward power (control of rewards value by others), coercive power (the ability to punish or harm), expert power (control over information that is valuable to the organization), and referent power (power through personal identification).
Position power is tied to a position regardless of the individual who holds it, and personal power is power that resides in person regardless of position.
Attempts to use power can result in commitment, compliance, or resistance.