Entrepreneurial Management Entrepreneurship I Class #9

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” 9/20/2018

Entrepreneurial culture What is an entrepreneurial culture? Why is it different from a corporate culture? Can it be “created?” 9/20/2018

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 9/20/2018

Entrepreneurial mananagement Management is the skill of obtaining predetermined objectives with the cooperation and effort of other people 9/20/2018

Good job Fun Important Learned Accomplishment Respect Meaningful ... 9/20/2018

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 9/20/2018

Entrepreneurial culture to dos Know something about everything in the enterprise: Learn Let others teach you Communicate at all levels Give credit to others 9/20/2018

To dos cont. Establish from the start: Cost containment Expense justification Rewards Get to know the numbers intimately Understand sales and marketing 9/20/2018

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 9/20/2018

To dos cont. Cultivate environment to: Do everything quicker and better than a large company Foster independent work habits Instill a sense of urgency 9/20/2018

Key hires CEO Senior Scientist/Engineer Developers/Technology Marketing Sales Finance Operations Receptionist/Admin 9/20/2018

Levels of management Titles/no titles Executive VP Directors Managers Associate Assistant 9/20/2018

Reward employees Salary Options Benefits: health insurance (plus dental and eye) retirement life insurance other (free food, soda, beer, games, events…) 9/20/2018

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 9/20/2018

Then look for Specific job skills Experience in job requirement Potential leader Ability to bring along other employees Establish expectations within a timeframe 9/20/2018

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 9/20/2018

Problem of promoting from within Different attitude when given authority Others have been passed over Posting opportunities can lead to trouble 9/20/2018

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 9/20/2018

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 9/20/2018

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 9/20/2018

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 9/20/2018

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 9/20/2018

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 9/20/2018

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 9/20/2018

Entropy Everything has a tendency to deteriorate Leaders must watch closely to recognize signs of impending deterioration 9/20/2018

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 …” 9/20/2018