Download - Timmons Ch 07 Fall 2006
-
7/28/2019 Timmons Ch 07 Fall 2006
1/26
The Entrepreneurial
Manager
Chapter 7
Dowling
BA 560
Fall Term 2006
-
7/28/2019 Timmons Ch 07 Fall 2006
2/26
The Entrepreneurial Manager
There are convergentpressures on being anentrepreneur and being
a manager as a ventureaccelerates and growsbeyond founder-drivensurvival. Key to futuresuccess is the ability of
an entrepreneur to haveor develop competenciesas an entrepreneurialmanager.
-
7/28/2019 Timmons Ch 07 Fall 2006
3/26
BA560 Venture Planning Prof. Dowling 3
The Entrepreneurial Manager
Old CW: A good entrepreneur
cant be a good manager.
New CW: Ventures thatflourish beyond startup can
be headed byentrepreneurs who arealso effective managers.
Unconventional
Wisdom?
-
7/28/2019 Timmons Ch 07 Fall 2006
4/26
BA560 Venture Planning Prof. Dowling 4
The Entrepreneurial Manager
Founders adapt forthree key reasons:
Shift from creation toexploitation
Shift from passionatecommitment todispassionate objectivity
Shift from direct personal
control to indirect,
impersonal control.
-
7/28/2019 Timmons Ch 07 Fall 2006
5/26
BA560 Venture Planning Prof. Dowling 5
Stages of Growth
Startup StageFrom 2 to 7 years; most perilous stage,characterized by efforts of leadentrepreneur.
High-Growth Stage
In this, perhaps the most challengingstage, new ventures fail at 60% rate.Lemons ripen.
Maturity Stage
Key issue is no longer survival. It issteady, profitable growth.
-
7/28/2019 Timmons Ch 07 Fall 2006
6/26
BA560 Venture Planning Prof. Dowling 6
Stages of Growth
Startup High Growth Maturity Stability
0 3-4 10 15Time (Years)
Crucial Transitions:
Sales 0-$3Million $2-10M $7.5M+Employees 0 to 20-25 25-75 75-100+Management
Mode
Doing Managing Managing Managers
$100 M+
$50 M
$25M
$3 M
$1 M
-
7/28/2019 Timmons Ch 07 Fall 2006
7/26
BA560 Venture Planning Prof. Dowling 7
The Entrepreneurial Manager
Entrepreneurial CultureA common value system
Difficult to measure orarticulate
Belief in and commitmentto growth
Team feels theyre in this thing together
Goals and market determine priorities
-
7/28/2019 Timmons Ch 07 Fall 2006
8/26
BA560 Venture Planning Prof. Dowling 8
The Entrepreneurial Manager
The Fit Concept
It is important to have amanagement team whose
skills are complementary.
-
7/28/2019 Timmons Ch 07 Fall 2006
9/26
BA560 Venture Planning Prof. Dowling 9
The Entrepreneurial Manager
Entrepreneurship Influence Skills
Leadership/vision/influenceHelping/coaching and conflictmanagement
Teamwork and people management
-
7/28/2019 Timmons Ch 07 Fall 2006
10/26
BA560 Venture Planning Prof. Dowling 10
Exhibit 7.1
-
7/28/2019 Timmons Ch 07 Fall 2006
11/26
BA560 Venture Planning Prof. Dowling 11
Exhibit 7.2
-
7/28/2019 Timmons Ch 07 Fall 2006
12/26
BA560 Venture Planning Prof. Dowling 12
Exhibit 7.3
-
7/28/2019 Timmons Ch 07 Fall 2006
13/26
BA560 Venture Planning Prof. Dowling 13
Exhibit 7.4
-
7/28/2019 Timmons Ch 07 Fall 2006
14/26
BA560 Venture Planning Prof. Dowling 14
Exhibit 7.5
-
7/28/2019 Timmons Ch 07 Fall 2006
15/26
BA560 Venture Planning Prof. Dowling 15
Traits Characterizing RapidlyGrowing Companies
High levels of change, 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 andprocedure
-
7/28/2019 Timmons Ch 07 Fall 2006
16/26
BA560 Venture Planning Prof. Dowling 16
Exhibit 7.6
-
7/28/2019 Timmons Ch 07 Fall 2006
17/26
BA560 Venture Planning Prof. Dowling 17
Entrepreneurial Influence Skills
Interpersonal/teamwork skills
Ability to create, 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
-
7/28/2019 Timmons Ch 07 Fall 2006
18/26
BA560 Venture Planning Prof. Dowling 18
Characteristics of SuccessfulManagers
Managers skilled in leadership, vision, and
influence
Skillful in creating clarity out of confusion,ambiguity, 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
-
7/28/2019 Timmons Ch 07 Fall 2006
19/26
BA560 Venture Planning Prof. Dowling 19
Characteristics of SuccessfulManagers
Managers skilled at helping, coaching, and
conflict management
Creatively handle conflicts, generate consensusdecisions, and share power and information
Recognize that high-quality decisions require a
rapid flow of information in all directions
Accept that knowledge, competence, logic, and
evidence need to prevail over official status or
formal rank in organization
-
7/28/2019 Timmons Ch 07 Fall 2006
20/26
BA560 Venture Planning Prof. Dowling 20
Characteristics of SuccessfulManagers
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
-
7/28/2019 Timmons Ch 07 Fall 2006
21/26
BA560 Venture Planning Prof. Dowling 21
Other ManagementCompetencies
Marketing Market research and evaluation
Marketing planning
Product pricing
Sales management
Direct selling
Service management
Distribution management
Product management
New product planning
-
7/28/2019 Timmons Ch 07 Fall 2006
22/26
BA560 Venture Planning Prof. Dowling 22
Other ManagementCompetencies
Operations/Production Manufacturing management
Inventory control
Cost analysis and control
Quality control
Production scheduling and flow
Purchasing
Job evaluation
-
7/28/2019 Timmons Ch 07 Fall 2006
23/26
BA560 Venture Planning Prof. Dowling 23
Other ManagementCompetencies
Finance Raising capital
Managing cash flow
Credit and collection management
Short-term financing alternatives
Public and private offerings
Bookkeeping, accounting, and control Other specific skills
-
7/28/2019 Timmons Ch 07 Fall 2006
24/26
BA560 Venture Planning Prof. Dowling 24
Other ManagementCompetencies
Entrepreneurial Management Problem solving
Communications
Planning
Decision-making
Project management
Negotiating Managing outside professionals
Personnel administration
-
7/28/2019 Timmons Ch 07 Fall 2006
25/26
BA560 Venture Planning Prof. Dowling 25
Other ManagementCompetencies
Law and Taxes Corporate and securities law
Contract law
Law relating to patent and proprietary rights
Tax law
Real estate law
Bankruptcy law
-
7/28/2019 Timmons Ch 07 Fall 2006
26/26
BA560 Venture Planning Prof. Dowling 26
Other ManagementCompetencies
Information Technology
Information and management systems tools.
Business to business, business to consumer,
business to government, all via the Internet
Sales, marketing, manufacturing, and merchandisingtools.
Financial, accounting, and risk analysis and
management tools.
Telecommunications and wireless solutions forcorporate information, data, and process
management.