1. Entrepreneurial Management
Entrepreneurship I
Class #9

2. Developing the entrepreneurial management team
Establishing the culture
Hiring, firing and promoting
Leadership role of the CEO
Developing leaders
Getting management buy-in
Setting up communication channels
Make work “fun”
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3. Entrepreneurial culture
What is an entrepreneurial culture?
Why is it different from a corporate culture?
Can it be “created?”
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4. Entrepreneurial culture Corporate culture
Mostly unstructured
Little politics
CEO is a Leader
CEO knows most operational details
Relatively flat organizations
Highly structured
Very political
CEO is manager
CEO knows little about operational details
Multi-layered organization
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5. Entrepreneurial mananagement
Management is the skill of obtaining predetermined objectives with the cooperation and effort of other people
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6. Good job Fun Important Learned Accomplishment Respect Meaningful ...
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7. Leadership We manage things; we lead people
Leader brings out the best in people
You know a leader if people follow
People don’t work 24 hours 7 days for “money” - they work for a vision, a dream
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8. Entrepreneurial culture to dos
Know something about everything in the enterprise:
Learn
Let others teach you
Communicate at all levels
Give credit to others
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9. To dos cont. Establish from the start:
Cost containment
Expense justification
Rewards
Get to know the numbers intimately
Understand sales and marketing
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10. To dos cont. Develop concepts of: Use Board of Directors/Advisors
Mini-goals
Immediate feedback
Dedicated and consistent work habits
Team participation
Use Board of Directors/Advisors
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11. To dos cont. Cultivate environment to:
Do everything quicker and better than a large company
Foster independent work habits
Instill a sense of urgency
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12. Key hires CEO Senior Scientist/Engineer Developers/Technology
Marketing
Sales
Finance
Operations
Receptionist/Admin
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13. Levels of management Titles/no titles Executive VP Directors Managers
Associate
Assistant
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14. Reward employees Salary Options Benefits:
health insurance (plus dental and eye)
retirement
life insurance
other (free food, soda, beer, games, events…)
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15. Hiring, firing, promoting
Build organization by hiring others
Characteristics:
Team personality
Likeable person, respected by peers
Upbeat personality, high energy
Quick study - learns fast
Honest and understanding
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16. Then look for Specific job skills Experience in job requirement
Potential leader
Ability to bring along other employees
Establish expectations within a timeframe
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17. Problem of hiring senior person
Resented by other team members
May not work out
Credibility of CEO is on the line
Disruption of the established culture
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18. Problem of promoting from within
Different attitude when given authority
Others have been passed over
Posting opportunities can lead to trouble
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19. Terminating an employee
Legal issues
Keeping employee files
Importance of initial agreement
Act sooner, not later
The approach:
Discussions prior to termination
Make reasons obvious to employee
Maintain a good relationship
Assist in finding other employment
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20. Leadership role of CEO Enterprise takes on your style
Stay in front of the enterprise
Achieve the respect of others
Learn to lead, not manage
Facilitate, don’t dictate
Praise in public, give guidance in private
Sell the company to your employees
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21. Develop leaders CEO is role model
Give responsibility of objectives, not tasks
Take time to talk about leadership with others
Make people feel important
Give them opportunities
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22. What do leaders do? Provide and maintain momentum of enterprise
Think beyond the whole
Allow others to lead them
Encourage others to join, not follow
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23. Getting management buy-in
Best ideas are from others, even if it’s really your idea
Things are rarely decided in a single meeting
Test everything before you try to sell it
Ask for commitment and support, not involvement
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24. Make work fun People need thanks and praise
Create a happy environment for all
Don’t let work get too serious for too long
Find ways of letting your hair down
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25. Set up communication channels
Establish good verbal communications
Minimize written communications wherever possible
Use the grapevine effectively
Ask others what they think
Open door policy
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26. Entropy Everything has a tendency to deteriorate
Leaders must watch closely to recognize signs of impending deterioration
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27. Watch for… Developing tension Dry business roles
Problem makers outnumber problem solvers
Management seeks control rather than delegates
Day-to-day pressures replace vision
Customers are “pains in the …”
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