By David Molian
In the last 23 years, we've worked with over 1,200 growth-oriented owner-managers on the Cranfield Business Growth & Development Programme, helping them both to grow their businesses and develop themselves. Over that time they've taught us a great deal about what it takes to become a truly effective leader of an entrepreneurial business.
Work 'on' the business, not 'in' it
Many businesses follow a predictable path. The founder starts as an artisan, 'doing the doing'. As he or she hires more staff the artisan evolves into the hero, routinely solving the everyday problems of the business. This can't continue indefinitely, so the founder makes key appointments to share the managerial load.
Too many heroes then turn into meddlers, unable to resist the urge to interfere in the jobs they're paying others to do. Only a few make it to stage four, the role of strategist, where they find time and space to develop the vision for tomorrow's business, working on the business as much as in it.
Communicate the vision
If you've worked out where you're going and how to get there, it pays to share your vision. A lot of entrepreneurs assume that because that vision is in their heads, it's in the heads of their staff. Unless they're mind readers, it's not. The vision needs to be written down, articulated and then communicated constantly. You can't assume because someone's heard something once, it's etched in their memory.
Prioritise
Managing the everyday ebb and flow of a business is a juggling act, where numerous challenges jostle for attention. Visionary leadership is about identifying the three or four key priorities that will deliver the future vision for the business and sticking to them resolutely.
In his extraordinary ten-year turnaround of ANZ Bank, John McFarlane refused to operate with more than three priorities understood by everyone. Over time the priorities would change, but never more than three. If a corporation with tens of thousands of employees can stick to this discipline, the entrepreneurial business certainly can.
Fit the leadership behaviour to the strategy
The number of winning strategies for an entrepreneurial business trying to dominate its niche is limited. Cost leadership is usually out of the question, which leaves customer intensity (the degree to which you love the customer), innovation leadership and business efficiency.
Problems arise when leadership behaviour and strategy don't match. There's little point in requiring all staff to complete timesheets and account for every second if you're trying to encourage a culture of innovation. Equally, a ruthless focus on efficiency alone is unlikely to foster a climate in which customers feel cherished and valued.
As anyone who's even tried to kick a bad habit knows, behavioural change is difficult. But it's far from impossible. Inside every entrepreneur there's a successful leader waiting to be released!
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