Growth Strategy

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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)

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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