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| Research article summary (published 29 Nov 2002): |
Why entrepreneurs don't scale.
Full Abstract
It's well known that many executives who excel at starting businesses or projects fizzle out--in other words, they fail to "scale"--as their ventures grow. But the reasons have remained fuzzy. In this article, leadership coach John Hamm identifies four management tendencies that work for small-company or business-unit leaders but become Achilles' heels as those individuals try to run larger organizations. The first tendency is loyalty to comrades. In entrepreneurial mode, you need to lead as though you're in charge of a combat unit on the wrong side of enemy lines. But blind loyalty can become a liability in managing a complex organization. The second tendency, task orientation, is critical in driving toward a big product launch, but excessive attention to detail can cause a large organization to lose sight of its long-term goals. The third tendency, single-mindedness, is important in a visionary unleashing a revolutionary product or service on the world but can limit the company's potential as it grows. And the fourth tendency, working in isolation, is fine for the brilliant scientist focused on an ingenious idea. But it's disastrous for a leader whose expanding organization increasingly relies on many other people. Leaders who scale deal honestly with problems and quickly weed out nonperformers. They see past distractions and establish strategic priorities. They learn how to deal effectively with diverse employees, customers, and external constituencies. And, most important, they make the company's continuing health and welfare their top concern.
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Author information
Author/s: Hamm, John (J);
Affiliation: Redpoint Ventures, Menlo Park, California, USA. jhamm@redpoint.com
Journal and publication information
Publication Type: Journal Article
Journal: Harvard business review (Harv Bus Rev), published in United States. (Language: eng)
Reference: 2002-Dec; vol 80 (issue 12) : pp 110-5, 134
Dates: Created 2003/01/03; Completed 2003/01/31; Revised 2004/11/17;
PMID: 12510543, status: MEDLINE (last retrieval date: 11/6/2008)
Sourced from the National Library of Medicine. Abstract text and other information may be subject to copyright.
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