Entreprenuerial Leadership

7/30/2019 Entreprenuerial Leadership

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ENTREPRENEURIAL

LEADERSHIP


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Learning objectives

To give brief introduction of entrepreneurship and leadership.

To give know how about the successful entrepreneurs.

To explain the role of entrepreneurs as a leader.

To explain the role of entrepreneurial leadership.

How we can construct entrepreneurial culture.


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Entrepreneur & Entrepreneurship?

An entrepreneur is an individual who owns a firm,

business, or venture, and is responsible for its

development. Entrepreneurship is the practice ofstarting a new business or reviving an existing business,

in order to capitalize on new found opportunities.


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Successful Entrepreneurs

There are six dominant themes for successfulentrepreneurs:

Leaderships

Commitment and determination Opportunity obsession

Tolerance of risk, ambiguity and uncertainty

Creativity self reliance and ability to adapt. Motivation to excel.


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Who is leader.?

Someone who can influence others and who

has managerial authorityor

A leader is a person who can influence ormotivate others to do what he wants themto do.


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What is leadership.?

The process ofinfluencing a group

towards theachievement of goals.

Leadership is the art of

motivating a group ofpeople to act towards

to achieving a common

goal.


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Food for Thought

An entrepreneur who starts his own business generallydoes so because he is a difficult employee.

He is probably finds it difficult to be in the alternatingdominant and then submissive role so often asked ofmanagement.

He also believes he can do the job better than others, whichmay be true BUT..


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Food for Thought

He must find a way of working with and throughothers if the business is to grow.

And here the person must start to make a transitionfrom being a mere entrepreneur to a leader.


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Entrepreneurial Leadership

Entrepreneurial leadership is about systematic and purposeful

development of leadership skills and techniques which can take

a long time. It is about the developing relationships. It is about

creating long term sustainable competitive advantage basedupon architecture of entrepreneurial leadership.


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Role of Entrepreneurs as a leader

A successful entrepreneurs are patient leaders, capable ofinstilling tangible visions and managing for the long haul.

There five elements include in the job for leader:

Having vision and ideas.

Being able to undertake long term strategic planning. Being able to communicate effectively.

Creating an appropriate culture within the firm

Monitoring and controlling performance.

Having the courage to delegate Controlling the business by monitoring information rather

than by direct physical intervention.


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An entrepreneur must change his role towards theseFUNCTIONAL disciplines i.e

Marketing

Accounting

People Management all change

In other words the business needs to become more formal

without becoming more bureaucratic.


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So the challenge is not only in developing thebusiness but also to cope with the managerial changefacing the founder.

Having your own vision is relatively easy. Building ashared vision is no easy task.

The challenge for an entrepreneur is to convert thecontractual employee of an economic entity intocommitted member of a purposeful organization.


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Challenges for entrepreneur during growth offirm

Growth through creativity

Growth through direction

Growth through delegation

Growth through coordination

Crises of Leadership

Crises of autonomy

Crises of control

Crises of red tape

Collaboration


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Entrepreneurial Organization structure

Spiders Web Spiders Web Grows


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Entrepreneurial Organization structure

HierarchicalStructure

Matrix Structure


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Churchil and Lewis Growth Model

Existence

Survival

Success

Take off

Maturity

Disengagement Growth


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How can a Entrepreneur Lead?

A Entrepreneur can lead through three differentways/Styles

Leader and Task

Leader and Group

Leader and Situation


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University of Michigan

Employee-oriented:

Emphasize interpersonal relationsProduction-oriented:

Emphasize the technical or task aspects of thejob

Leader and Task


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University of Michigan

Research findings:

Leaders who are employee oriented arestrongly associated with high groupproductivity and high job satisfaction.


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Managerial Grid

Appraises leadership styles using two dimensions

Concern for People:Measured leaders concern for subordinates ona scale of 1-9

(low to high)Concern for Production:

Measured leaders concern for getting job doneon a scale of 1-9

(low to high)


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The Managerial Grid

Concern forProduction

9

8

7

6

5

4

3

2

1

1 2 3 4 5 6 7 8 9

Concern

forPeople

(1,9)

(1,1)

(5,5)

(9,9)

(9,1)

Impoverished ManagementExertion of minimum effort to getrequired work done is appropriateto sustain organizational

membership


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The Managerial Grid


9

8

7

6

5

4

3

2

1

1 2 3 4 5 6 7 8 9

Concern

forPeople

(1,9)

(1,1)

(5,5)

(9,9)

(9,1)

Task ManagementEfficiency in operations results inthe accomplishment of work inSuch a way that there is minimum

Interfere of human elements


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The Managerial Grid


9

8

7

6

5

4

3

2

1

1 2 3 4 5 6 7 8 9

Concern

forPeople

(1,9)

(1,1)

(5,5)

(9,9)

(9,1)

Middle of the road ManagementAdequate organizational performanceIs possible through balancing the necessity

to get out work withmaintaining morale of the people

At a satisfactory level


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The Managerial Grid


9

8

7

6

5

4

3

2

1

1 2 3 4 5 6 7 8 9

Concern

forPeople

(1,9)

(1,1)

(5,5)

(9,9)

(9,1)

Country Club ManagementThought full attention to needs

of people for satisfyingrelationship leads to acomfortable friendlyorganizational atmosphere &work tempo


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The Managerial Grid


1 2 3 4 5 6 7 8 9

Concern

forPeople

(1,9)

(1,1)

(5,5)

(9,9)

(9,1)

Team Management

Work accomplished is fromcommitted people,

Interdependence throughcommon stake in organizationalpurpose leads to relationship

of trust and respect

9

8

7

6

5

4

3

2

1


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Leader and Group

Participative Consultative

Paternalistic Autocratic

Low High

High

Low

Group autonomyin decision-making

Leader Authority


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Leader and Situation

Must move away from using autocratic/ dictatorial

leadership style

Must be adept at using informal influence

Must be adept at conflict resolution


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Role of Entrepreneurial Leadership

The primary role of good entrepreneurial leader is to buildan entrepreneurial architecture.

The entrepreneurial architecture creates with in theorganization the knowledge and routines that allow it torespond flexibly to change and opportunity in the way theentrepreneur does.

It is a very real and valuable asset that creates that createscompetitive advantage and can be sustained


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Constructing an Entrepreneurial culture

Hofstede (1990) explain different dimensions oforganizational culture in an attempt to discriminate betweenentrepreneurial and administrative organizations.Timmons, Peters (1997) and Cornwall and Perlman (1990)explain tits following elements:

People and empowerment focus

Commitment and personal responsibility

Doing the right thing

Value creation through innovation and change

Hands on management

Freedom to grow and fail

Attention to basics

Emphasis on future and sense of urgency.


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Remember

Management is doing things right;

Leadership is doing the right things

Peter F. Drucker

Entreprenuerial Leadership

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