MANAGERS LEADERS ENTREPRENEURS

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MANAGERSLEADERSENTREPRENEURS
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MANAGERS
ENTREPRENEURS
LEADERS
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MANAGER
ENTREPRENEUR
LEADER
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SOME POSSIBLE QUESTIONS

• IS AN ENTREPRENEUR ALWAYS AN ENTREPRENEUR AND IF
  NOT, CAN HE OR SHE BE A MANAGER AND/OR LEADER
  WHEN NOT?
• IS LEADERSHIP A QUALITY OF A GOOD MANAGER OR
  SOMETHING SEPARATE?
• IS AN ENTREPRENEUR ALWAYS A LEADER TO SOME EXTENT
  AND, IF SO, WHAT KIND OF LEADER?

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FIRST SOME ACCEPTED FACTS
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MANAGER --------------------------------
ENTREPRENEURSIMILARITIESBOTH NEED TO PLAN,
ORGANIZE AND CONTROL THEIR ACTIVITIES

• DIFFERENCES
• TENDS TO BE SHORT-TERM ORIENTED TOWARDS
  ACCOUNTING PERIODS
• LOW RISKTAKER, TRIES TO AVOID MAKING MISTAKES
• EXTERNAL STANDARDS, ORIENTED TOWARDS REWARDS AND
  PUNISHMENTS IN THE ORGANIZATION

• TENDS TO BE LONG-TERM PROBLEM ORIENTED
• HIGHER RISKTAKER, TRIES TO LEARN FROM MISTAKES
  MADE
• INTERNAL STANDARDS, REWARDS HIMSELF OR HERSELF

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MANAGER ---------------------------------
LEADERSIMILARITIES MANAGERS (WHEN HAVING
TO DO WITH PEOPLE) SHOULD HAVE LEADERSHIP
QUALITIES

• DIFFERENCES
• DOES NOT HAVE TO INVOLVE OTHER PEOPLE (CAN HAVE A
  DEPARTMENT OR VENTURE BEING ALONE)
• SOURCE OF POWER A POSITION
• DECIDES AND GIVES ORDERS

• MUST INVOLVE OTHER PEOPLE (HAVE FOLLOWERS)
• SOURCE OF POWER PERSONAL QUALITIES
• IS A ROLE MODEL

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ENTREPRENEUR ------------------------
LEADERSIMILARITIES MOST SUCCESSFUL
ENTREPRENEURS ARE LEADERS IN THEIR BUSINESS
FIELD AND (IF THEY ARE NOT ALONE) OF THEIR
EMPLOYEES

• DIFFERENCES
• IS INVOLVED IN NEW VENTURES
• MANY START AND RUN SMALL BUSINESS VENTURES
  WITHOUT HAVING ANY EMPLOYEES (SOLO VENTURERS)

• IS INVOLVED IN OTHER PEOPLE

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SOME PROBLEMS WITH THIS KIND OF KNOWLEDGE

• THERE IS NO ABSOLUTE AND DEFINITE SOCIAL
  KNOWLEDGE. ALL SUCH KNOWLEDGE IS CONTEXTUAL AND
  RELATED TO A PURPOSE (WHAT KNOWLEDGE IS FOR)
• MANAGERS, ENTREPRENEURS AND LEADERS ARE
  IMPLICITLY MADE INTO SOMETHING POSITIVE
• THERE ARE MANY NEGATIVE ASPECTS OF ALL THREE
• IT LEADS TO MYTHS, ESPECIALLY OF WHAT IS LESS
  PRECISE, I.E.,
• LEADERS AND ENTREPRENEURS
• THE RESULTS ARE VALID ONLY IN THE WESTERN WORLD,
  IN PARTICULAR IN THE US

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SOME MYTHS ASSOCIATED WITH LEADERS

• LEADERSHIP IS A RARE QUALITY
• LEADERS ARE CHARISMATIC
• LEADERS EXIST ONLY AT THE TOP OF THE ORGANIZATION
• LEADERS ARE MAGICIANS AND MANIPULATORS
• LEADERSHIP (AS WELL AS ENTREPRENEURSHIP) IS
  SOMETHING WHICH IS BASED ON CERTAIN QALITIES THAT
  YOU ARE BORN WITH IF YOU DO NOT HAVE THOSE
  QUALITIES, YOU CANNOT LEARN TO BE A LEADER (OR AN
  ENTREPRENEUR)

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SOME MYTHS ASSOCIATED WITH ENTREPRENEURS

• THERE ARE SO MANY WAYS TO BECOME AN ENTREPRENEUR
  THE RECIPE FOR SUCCESS CAN THEREFORE NOT BE
  TAUGHT
• THE MOST IMPORTANT FACTOR FOR ENTREPRENEURIAL
  SUCCESS IS THE IDEA ON WHICH THE VENTURE IS
  BASED, THE ENTREPRENEUR COMES SECOND
• THE MORE MONEY YOU INVEST IN ENTREPRENEURSHIP,
  THE MORE YOU GET OUT OF IT

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THE INHERITAGE FROM ECONOMICS

• THE ENTREPRENEUR IS A
• RISK TAKER (CANTILLON BEGINNING OF EIGHTEENTH
  CENTURY)
• BUILDER OF A BUSINESS VENTURE THE FOURTH
  PRODUCTION FACTOR (SAY BEGINNING OF NINETEENTH
  CENTURY)
• INNOVATOR (SCHUMPETER BEGINNING OF TWENTIETH
  CENTURY)
• OPPORTUNIST (KIRZNER MID TWENTIETH CENTURY)

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FOUR AREAS OF ENTREPRENEURSHIP RESEARCH TODAY

• ENTREPRENEURIAL CONSEQUENCES?
• ENTREPRENEURIAL THINKING?
• ENTREPRENEURIAL ENVIRONMENTS?
• ENTREPRENEURIAL PROCESSES?

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THE NEW ECONOMIC ERA

• CHANGE
• GENUINE UNCERTAINTY
• CHANGE AGENTS
• NEW FORMS OF CAPITAL
• UNCLEAR INDUSTRY BORDERS
• INFORMATION SOCIETY KNOWLEDGE SOCIETY RISK
  SOCIETY NETWORK SOCIETY ECONOMY OF EXPERIENCES

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A SIMPLE STAIRCASE OF DEVELOPMENT
ENTREPRENEURSHIP
TECHNOLOGY
CAPITAL
INFRA- STRUCTURE
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AN ALTERNATIVE SET OF FACTS

• KNOWLEDGE TO UNDERSTAND MANAGEMENT,
  ENTREPRENEURSHIP AND LEADERSHIP IN THE NEW
  ECONOMIC ERA

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ENTREPRENEURS CREATORS OF NEW USER VALUE

• INNOVATORS
• OPPORTUNISTS
• BUT NOT SO MUCH
• RISK TAKERS
• BUSINESS VENTURE BUILDERS

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THREE POSITIONS IN THE NEW ECONOMIC ERA

• MANAGEMENT IS A PROFESSION. MANAGERS NEED
  TECHNICAL SKILLS. THEY RELATE TO THEIR
  EMPLOYERS AND ARE JUDGED BY THEM.
• LEADERSHIP IS A ROLE. LEADERS NEED SOCIAL SKILLS.
  THEY RELATE TO THEIR FOLLOWERS AND ARE JUDGED BY
  THEM.
• ENTREPRENEURSHIP IS AN ATTITUDE IN APPLICATION (A
  LIFE FORM). ENTREPRENEURS NEED MENTAL SKILLS.
  THEY RELATE TO THE USERS OF THEIR INNOVATIONS AND
  ARE JUDGED BY THEM.

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THREE PARTS OF THE ENTREPRENEURIAL ATTITUDE

• THE WORLD IS NOT PERFECT!
• THERE ARE ALTERNATIVE SOLUTIONS TO THE WORLDS
  PROBLEMS!
• I (!) WANT TO BE PART OF REALIZING THESE
  SOLUTIONS (OR AT LEAST THE GOOD ONES)!

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MODES OF GROWING
PRODUCT
OLD NEW
1
2
OLD
MARKET
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4
NEW
1-3 MANAGERIAL GROWTH
4 ENTREPRENEURIAL GROWTH
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THE TERMINOLOGY (AND WAY OF THINKING) IN TWO
MODES OF GROWING (IN MATCHED PAIRS)MANAGERIAL
GROWTH
ENTREPRENEURIAL GROWTH

• PLANNING
• UNITY
• SYSTEMS
• STRUCTURES
• BUSINESS CONCEPTS
• WE ARE
• EFFICIENCY
• ECONOMIES OF BIG SCALE
• EDUCATION
• MANAGEMENT

• LEARNING
• VARIETY
• ACTORS
• PROCESSES
• VISIONS
• WE BECOME
• COMMITMENT
• ECONOMIES OF SMALL SCALE
• CULTURE
• LEADERSHIP

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THERE ARE TWO KINDS OF MARKETING

• TRANSACTIONAL MARKETING
• MARKETING MEANS THE PROCESS WHEREBY THE
  CONCEPTUALIZATION OF IDEAS, GOODS AND SERVICES IS
  PLANNED AND IMPLEMENTED IN ORDER TO CREATE
  EXCHANGES ACCOMPLISHING INDIVIDUAL AND
  ORGANIZATIONAL GOALS.
• RELATIONSHIP MARKETING
• MARKETING MEANS TO IDENTIFY AND ESTABLISH,
  MAINTAIN AND DEEPEN, AND IF NECESSARY END,
  RELATIONSHIPS WITH CUSTOMERS (AND OTHER PARTIES)
  IN ORDER TO ACCOMPLISH ECONOMIC AND OTHER GOALS
  FOR ALL PARTIES. THIS IS DONE THROUGH MUTUAL
  EXCHANGE AND THROUGH CARRYING OUT PROMISES MADE.

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THERE ARE TWO KINDS OF ORGANIZATIONS

• FOCAL ORGANIZATIONS (OFTEN CALLED FORMAL
  ORGANIZATIONS)
• RELATIVELY CLEAR CONSTRUCTIONS WITH RELATIVELY
  FIRM POSITIONS AND RELATIONSHIPS, OFTEN IN
  HIERARCHIES, BETWEEN INDIVIDUALS AND DEPARTMENTS
  WITHIN SPECIFIC FIRMS AND/OR LEGAL UNITS.
• IMAGINARY (OR VIRTUAL) ORGANIZATIONS (OFTEN
  CALLED NETWORKS)
• LOOSELY JOINED, AND CONSTANTLY FLOWING,
  RELATIONSHIPS BETWEEN INDIVIDUALS AND
  ORGANIZATIONS, RELATIONSHIPS, WHICH IN PRINCIPLE
  EXIST AS POSSIBLE TO REALIZE ONLY FOR THOSE WHO
  ARE PART OF THEM AND WHO ARE STRONG ENOUGH TO USE
  THEM.

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THERE ARE TWO KINDS OF LEARNING

• EXPLOITATIVE LEARNING (TO CREATE RELIABILITY IN
  EXPERIENCE)
• REFINE, ROUTINIZE, RETRIEVE AND APPLY KNOWLEDGE
  (LEARN MORE OF AND BETTER WHAT YOU KNOW ALREADY).
  THIS USUALLY LEADS TO IMPROVEMENTS BUT IS OFTEN
  BLIND TO ESSENTIALLY NEW DIRECTIONS.
• EXPLORATIVE LEARNING (TO CREATE VARIETY IN
  EXPERIENCE)
• RESEARCH, INVENT, VARY, INNOVATE (LEARN
  GENUINELY NEW THINGS). THIS OFTEN LEADS TO
  DISASTER BUT SOMETIMES TO IMPORTANT NEW
  DIRECTIONS AND DISCOVERIES.

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THERE ARE TWO WAYS TO CREATE VALUE

• FOLLOWING EXISTING VALUE-ADDING FLOWS (SOMETIMES
  CALLED VALUE CHAINS)
• ADAPT TO EXISTING RELATIONSHIPS BETWEEN PRESENT
  AND COMING PARTICIPANTS ON THE MARKET ARENAS.
• BUILDING NEW VALUE CONSTELLATIONS (SOMETIMES
  CALLED VALUE STARS)
• CONSTRUCT (ALTERNATIVELY FINDING ONLY), AT LEAST
  PARTLY NEW, RELATIONSHIPS BETWEEN PRESENT AND
  COMING PARTICIPANTS ON THE MARKET ARENAS.

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1
2
ENTREPRENEURIAL GROWTH
MANAGERIAL GROWTH
LEADERSHIP
MANAGEMENT
RELATIONSHIP MARKETING
TRANSACTIONAL MARKETING
IMAGINARY ORGANIZATIONS
FOCAL ORGANIZATIONS
EXPLORATIVE LEARNING
EXPLOITATIVE LEARNING
VALUE STARS
VALUE CHAINS
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2
1
2
1

• NOTE THERE ARE TWO KINDS OF LEADERS IN THIS
  CONTEXT
• TAKE A LEADING ROLE IN CONSTRUCTING AND REALIZING
  NEW
• IMAGINARY ORGANIZATIONS AND NEW VALUE
  CONSTELLATIONS
• (ONLY IN )
• LEAD THOSE WHO FOLLOW IN FOCAL ORGANIZATIONS (THE
• TRADITIONAL LEADERSHIP ROLE MAINLY IN )

1
2
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size
LEADERSHIP
MANAGEMENT
EXPLORATIVE LEARNING
EXPLOITATIVE LEARNING
ENTREPRENEURSHIP
SMALL BUSINESS MANAGEMENT
RELATIONSHIP MARKETING
TRANSACTIONAL MARKETING
time
IMAGINARY ORGANIZATIONS
FOCAL ORGANIZATIONS
VALUE STARS
VALUE CHAINS
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GROWTH
ICAROS
SUCCESSFUL GROWTH
SMALL BUT HAPPY
THE MINNOW THAT NEVER TOOK OFF
TIME