Growth Strategy
oet12-12-2011
A Venture’s Typical Life Cycle
Profit, Productivity, Revenues
Managing Entrepreneurial Growth
NewNew-Venture Development Start-up StartActivities Venture Growth Business Stabilization Innovation or Decline
Venture Development Stages
The Entrepreneurial Mindset
Future Goals Status Quo Change Perceived Capability Possible
The Entrepreneurial Company in the Twenty-First Century
Entrepreneur
Satisfied Manager
Blocked
Frustrated Manager
Classic Bureaucrat
Building the Adaptive Firm
• • • • Share the Entrepreneur’s Vision Increase the Perception of Opportunity Institutionalize Change as the Venture’s Goal Instill the Desire to Be Innovative
– A reward system – An environment that allows for failure – Flexible operations – The development of venture teams
The Transition from an Entrepreneurial Style to a Managerial Approach
• Balancing the Focus (Entrepreneur and Manager)
1
12-12-2011
The Entrepreneurial Culture Versus the Administrative Culture
Entrepreneurial Focus
Characteristics
The Entrepreneurial Culture Versus the Administrative Culture
Entrepreneurial Focus
Characteristics
Administrative Focus
Characteristics
Administrative Focus
Characteristics
Strategic Orientation Commitment to Seize Opportunities Commitment of Resources
Driven by perception of opportunity Revolutionary, with short duration Many stages, with minimal exposure at each stage
Driven by controlled resources Evolutionary, with long duration A single stage, with complete commitment out of decision
Control of Resources Management Structure
Episodic use or rent of required resources Flat, with multiple informal networks
Ownership or employment of required resources Hierarchy
Key Factors During the Growth Stage
Understanding the Growth Stage
• • • •
Control Responsibility Tolerance of failure Change
Managing Paradox and Contradiction
Confronting the Growth Wall
Successful
A Venture’s Typical Life Cycle
Profit, Productivity, Revenues
Managing Entrepreneurial Growth
NewNew-Venture Development Start-up StartActivities Venture Growth Business Stabilization Innovation or Decline
Venture Development Stages
The Entrepreneurial Mindset
Future Goals Status Quo Change Perceived Capability Possible
The Entrepreneurial Company in the Twenty-First Century
Entrepreneur
Satisfied Manager
Blocked
Frustrated Manager
Classic Bureaucrat
Building the Adaptive Firm
• • • • Share the Entrepreneur’s Vision Increase the Perception of Opportunity Institutionalize Change as the Venture’s Goal Instill the Desire to Be Innovative
– A reward system – An environment that allows for failure – Flexible operations – The development of venture teams
The Transition from an Entrepreneurial Style to a Managerial Approach
• Balancing the Focus (Entrepreneur and Manager)
1
12-12-2011
The Entrepreneurial Culture Versus the Administrative Culture
Entrepreneurial Focus
Characteristics
The Entrepreneurial Culture Versus the Administrative Culture
Entrepreneurial Focus
Characteristics
Administrative Focus
Characteristics
Administrative Focus
Characteristics
Strategic Orientation Commitment to Seize Opportunities Commitment of Resources
Driven by perception of opportunity Revolutionary, with short duration Many stages, with minimal exposure at each stage
Driven by controlled resources Evolutionary, with long duration A single stage, with complete commitment out of decision
Control of Resources Management Structure
Episodic use or rent of required resources Flat, with multiple informal networks
Ownership or employment of required resources Hierarchy
Key Factors During the Growth Stage
Understanding the Growth Stage
• • • •
Control Responsibility Tolerance of failure Change
Managing Paradox and Contradiction
Confronting the Growth Wall
Successful