THE DIFFERENCE BETWEEN MANAGERS AND ENTREPRENEURS
With the stresses of modern organizational life, rapidly changing markets, more fleeting opportunities plus the vagaries the world economy (at the time of posting this article), organizations more than ever need managers that can be more entrepreneurial in their approach to business.
The chief executive of a global leader in the telecommunications industry for whom I conducted training, in the not too distant past stated that “the most successful division in their organisation achieved its outstanding results because it’s ‘managers’ took an ‘entrepreneurial’ approach to business”. He went on to say that “all divisions of the organization would need to become more entrepreneurial if their organisation was to survive, let alone remain a leader”.
One author of a book on entrepreneurship goes so far as to predict that mangers will all but disappear from organisations and be replaced by ‘leaders’ that are able to manage ever-increasing rates of change and be nimble enough to capture fleeting market opportunities.
Corporate Japan’s well publicised (and apparently continuing) troubles are thought buy many analysts to be the result of the fact that no further productivity increases can be found in what are already highly efficient production processes. Future productivity increases will only be achieved if Japan is able to find and grasp new and different opportunities rather than continue to do the ‘same things’ better. Japanese managers, to be honest, are not renowned for their creativity and willingness to change. Take a look at Japan’s banking industry and you will know what I mean.
If, as the growing evidence suggests, we all need more entrepreneurial ‘managers’, how many of these key players in the future success of our organisation understand what an entrepreneur is, let alone, know how to be entrepreneurial in their approach to work. Try this at your next management meeting, ask your managers to write down a definition of an entrepreneur, then (if my past experience is any guide) you will need to resist the temptation to leap out the nearest window.
The traditional view of managers is that a manager’s role is to manipulate “what is”, “things” and “information” to produce a result that is clearly specifiable in advance. As a contrast entrepreneurs try to create “what isn’t” by a lot of guesswork, improvisation and learning from mistakes. (Mitch McCrimmon).
To look a little more closely at the differences lets define ENTREPRENEURIAL FUNCTIONS
Organizational learning; Knowledge leadership; Creative ‘resourcing’; Providing flexible structures; Innovation; Visioning; Teamwork and Stimulating diversity.
Perhaps successful organizations of the future will need to employ managers that can embrace an ENTREPRENEURIAL CULTURE AND VALUES and who can, or will:
Provide an atmosphere that promotes continual experimentation.
Tolerate loose organisational structures and behaviour.
Willingly hand over decision making to those with expertise in their field.
Help risk takers and encourage those who fail as much as they celebrate those who win.
See networking as more important than traditional lines of authority. Promote multi directional communication that crosses all responsibility levels.
Allow leadership to change as situation demands in line with expertise required at any point.
Easily change direction in response to market, technological or political influences.
Constantly interact with customers, suppliers, and colleagues, in fact the total environment.
…and Seek feedback from all experiences and sources and be highly responsive to new conditions/situations.
Perhaps it is time to ask yourself this question: IS YOUR ORGANIZATION READY FOR A FUTURE IN THE MODERN BUSINESS CLIMATE WHERE WE ALL (IF THE PUNDITS ARE RIGHT), NEED TO BE MORE ENTREPRENEURIAL?
Many people have only a vague or generalized idea of what an entrepreneur is or does, so WHAT IS AN ENTREPRENEUR?
DEFINITION OF AN ENTREPRENEUR
Someone with the ability and willingness to introduce NEW products or services, THAT SELL, to a market where those products or services where previously either unavailable or not desired. Obviously the emphasis is on doing something new in the market place. To stimulate the creative, risk-taking behaviour required for success in the future should be the primary role for us all if we are going to lead a successful organization into the future.
CHARACTERISTICS OF AN ENTREPRENEUR
Risk taker that can live with uncertainty; Adaptable to change and able to improvise; Can see how new innovations satisfy a market; Interested in effectiveness rather than efficiency; Either creative him/herself or able to utilise those who are; Has a desire to lead in his/her area of operation or market; A continuous learner willing to make and or tolerate mistakes; Flexible, willing to change direction as the circumstances dictate; Self possessed of a sense of urgency and stimulates that sense in others; Recognises his/her shortcomings and empowers others who compensate.
TAKE A LOOK AT YOUR MANAGERS… IS IT OUCH?!
If you happen to be looking for a new position, “an entrepreneurial manager”… are perhaps good words to include in your resume?
SO WHAT IS AN ENTREPRENEURIAL MANAGER? CAN YOU FULFILL THE ROLE AND OR DO YOU NEED THEM AT YOUR PLACE AT ALL… ?
Ps if your seeking employment perhaps you need to find a way to put “entrepreneurial” in your resume, www.orglearn.org blank resume
Tags: best practice, change management, entrepreneur, entrepreneurial functions, future management, leadership, management