LEADERSHIP & MANAGEMENT
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THE NEW ENTREPRENEUR

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Selected by Zeeshan Ahmed Khan

June 13 - 19, 2005
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"History moves in a spiral; one returns to the preceding position, but on a higher level, and by a corkscrew-like path."

 

 

We are again entering an era in which emphasis will be on entrepreneurship. However, it not be an entrepreneurship of a century ago, that is, the ability of a single man to organize a business he himself could run, control, embrace. It will rather be the ability to create and direct an organization for the new. We need men and women who can build a new structure of entrepreneurship on the managerial foundations laid these last eighty years. History, it has often been observed, moves in a spiral; one returns to the preceding position, or to the preceding problem, but on a higher level, and by a corkscrew-like path. In this fashion we are going to return to entrepreneurship on a path that led out from a lower level, that of the single entrepreneur, to the manager, and now back, though upward, to entrepreneurship again. The businessperson will have to acquire a number of new abilities, all of them entrepreneurial in nature, but all of them to be exercised in and through a managerial organization.

ACTION POINT: Establish an entrepreneurial culture in your organization.

The age of discontinuity

Controls should focus on results

"What today's organization needs are synthetic sense organs for the outside."

Every social institution exists to contribute to society, economy, and individual. In consequence results exist only on the outside in economy, in society, and with the customer. It is the customer only who creates a profit. Everything inside a business creates only costs, is only a "cost center." But results are entrepreneurial. Yet we do not have adequate, let alone reliable, information regarding the "outside". The century of patient analysis of managerial, inside phenomena, events and data, the century of patient, skillful work on the individual operations and tasks within the business, has no counterpart with respect to the entrepreneurial job. We can easily record and therefore quantify efficiency, that is, efforts. It is of little value to have the most efficient engineering department if it designs the wrong product. And it mattered little, I dare say, during the period of IBM's great expansion in the 50's and 60's how "efficient" its operations were; its basic entrepreneurial idea was the right, the effective one.

 

 

The outside, the area of results, is much less accessible than the inside. The central problem of executives in the large organizations is their insulation from the outside. What today's organization therefore needs are synthetic sense organs for the outside. If modern controls are to make a contribution, it would be, above all, here.

ACTION POINT: Develop a systematic method of collecting critical information on the environment. The information should include knowledge of customer satisfaction, non customer buying habits, technological developments, competitors, and relevant government policies.

MANAGEMENT: TASKS, RESPONSIBILITIES, PRACTICES.

Peter F. Drucker

BUSINESS WISDOM

"We are creating and using up ideas and images at a faster and faster pace. Knowledge, like people, places, things and organizational forms, is becoming disposable."

(Alvin Toffler, American scholar, lecturer and author)

"The role of front-line service delivery personnel in the selling effort is crucial. In many companies they sale service daily and can sell additional services, related services and more of a service. Often, front-line service delivery personnel, being at the lower-end of the pay scale, view their company's products and services as beyond their own economic reach and thus show reluctance to activity sell. Good training can give these employees the confidence to proudly sell their company's products and services."

(Linda M. Lash, British Training and development Counsellor and author)

"In a sense, knowledge shrinks as wisdom grows: for details are swallowed up in principles. The details of knowledge which are important will be picked up and hoc in each avocation of life, but the habit of the utilization of well-understood principles is the final possession of wisdom."

(A.N. Whitehead, 1861-1947, British Mathematician, Philosopher, Professor of Philosophy at Harward University and author)

'In the course of the examination of ideas, decisions will often emerge. It becomes increasingly obvious that and idea does not offer sufficient benefits to take it further. Consensus opinions can gradually emerge; this is how the Japanese makes decisions."

(Edward De Bono, Maltese-born British scholar, teacher, lecturer and author)

"One barber shaves not so close but another finds work."

(English Proverb)

"A horse never runs so far as he has other horses to catch up and outpace."

(Ovid, Roman poet. The Art of Love, c.AD 8)

"To succeed, you have to believe in something with such a passion that it becomes a reality."

(Anita Roddick, British business woman, co-founder and chief executive of The-Body Shop International)

"A leader is a dealer in hope."

(Napoleon, French soldier, statesman, and Emperor of France 1804-14/15)