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Archives for March 2008

Enterprise is More than Entrepreneurship

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One of the things that bugs me (especially when I catch myself doing it) is when we use enterprise and entrepreneurship as if they were almost the same thing.

For me, ‘enterprise’ describes a set of behaviours that are defined at the level of the individual. For example, if Richard Branson were to set up another major record label and make a few quid – by his standards that would not be very enterprising. Stuff he has done before – to great success – so where’s the enterprise? However for him to get into space travel, railways, ballooning, cosmetics etc is enterprising because they are new challenges.

So enterprise is a relative concept defined by the individual and where they are starting from. If we want to encourage more ‘enterprise’ especially in areas of deprivation with few enterprising role models we have to be prepared to accept wider definitions of enterprise. We have to acknowledge the concept of introducing people to an enterprise journey that may take years to get close to ‘starting a business’ or that may head in a completely different direction.

So a young person in South Leeds who attends a training course to qualify as a referee is ‘enterprising’. The provision of the referee training course has encouraged enterprise. If we are canny, once we have engaged that individual in their enterprising journey we can then help them to plot the next steps – to help keep them moving forward. Enterprising people are making positive things happen.

By defining enterprise too narrowly as ‘starting a business’ or ‘becoming self employed’ we are often encouraging people to start their enterprise journey at a point that is already a very long way down the tracks. This significantly increases the chances of failure and loss of engagement.

To avoid this trap we need to be very careful in the way we specify, commission, deliver and evaluate the impact of ‘enterprise growth’ projects.

The Challenge of Becoming a Better Manager

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Dark Arches
(Image supplied by Deborah Benbrook – a great ‘Leeds’ photographer – click the image to see some more of her work)
I work with managers who are trying to get better at their craft. Much better. They want to be the kind of manager who supports a team to do amazing work. To help others to really deliver to the best of their potential, both individually and as a team.
We use a set of management tools and techniques that could be described as ‘enlightened’. They are certainly based on an assumption that people are intrinsically good and want to perform well and develop their potential. However this means facing a dark truth – especially when talking about managing under-performers. No-one knowingly recruits an under-performer. And very few new recruits start off that way. There is something about the work context, something about what we as managers do that influences some people (sometimes the majority) to settle for less than their best. And it can be easy for managers to collude with them especially if that is the ‘culture’ of the organisation.
There are several reasons why making a transition to being a significantly better manager can be so difficult.
  • Firstly you have to be prepared to be obsessed by high performance, improvement and making the most of potential. Organisational rhetoric will always advocate this. However, in practice the rhetoric of excellence is dropped in favour of more pragmatic and easily achieved compromises.
  • Secondly, enlightened management practices can feel very uncomfortable especially to begin with. They are not our default management style. Our spontaneous management style is an expression of our deeply held, often subconscious, values and beliefs. And sometimes these are driven by more more traditional management concepts of power and control and more of a focus on the task than on developing the potential of the team to deliver excellence. So we wrap ourselves in the tools and techniques of enlightened management but underneath there is always a little voice saying ‘Just give a few orders, crack a few heads and get things done’. Only if we persist will we recognise that relationships are improving, more initiative is being shown, teams are performing better and genuine progress is being made. Only then will the nagging voice encouraging us to revert to the old fashioned ways start to fade away. And this is a process of substantial personal development. It is the process of becoming a different person with different attitudes and beliefs about what ‘excellence in management’ is all about. Now the tools and techniques of ‘enlightened management’ feel much more congruous with who we are as a person.
  • The third difficulty is the response of your team and the wider organisation to your changing management style. You start to use regular 121s, you give and seek feedback – frequently. Furthermore you expect it to be acted upon. You start coaching – everyone in your team – and expecting things to get better on a weekly basis. And you delegate consistently and well – not from a place that says ‘I can get some of my work done by others’ – but from a place that says ‘giving people the opportunity to take on these challenges will help them to develop and keep them interested an fulfilled in their work’. And what response do you get? Often it is a combination of surprise, discomfort, antagonism and disbelief. Usually there is a hope that if we can just keep things quiet for a while you will get over whatever training programme you have been on and things will get back to the mediocrity that passes for normal.
So the challenge of becoming a better manager is not an easy one. However it is not about mastering tools and techniques or acquiring new skillsets (although there maybe a little of this stuff). It is actually about recognising that there is a better way to manage and having the commitment and the discipline to pass through the discomfort of putting it into practice.

When the Business Idea Just Will Not Work…

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Pet Rocks

I am currently putting together a professional development programme for people who provide a range of ‘enterprise support services’.

I am trying to establish the challenges that they face and where professional or service development support might help. One of the commonest problems reported is that of helping the client to recognise when their business idea is just ‘not viable’.

The implication of this is that as ‘professionals’ we know whether a business idea can or cannot be made to work. We understand the financial dynamics of the business and the marketplace and we can foretell the future – absolutely. The challenge is how to get the client to recognise what we already know to be true.

  • Do we just tell them that we know the business won’t work?
  • Or do we carefully lead them to the same, ‘obviously right’, conclusion.
  • Or do we recognise that our beliefs could be wrong and focus on helping the client to develop their own business idea free of any negative bias from us?

My guess is that there are many, many very successful businesses that would never of started trading had their adviser not carefully and skillfully pursued this third option.

For example there is this company that sells tumbleweed (‘I would just like to talk to you about an idea that I have for a business. You see all these weeds that are blowing across the prairie? I reckon I can sell them mail order over the Internet….’). Any takers for the first Dandelion Emporium or Himalayan Balsam Wholesaler?

  • Then, closer to home there is this company that makes haute couture for ferrets.
  • Then there are doggles (goggles for dogs),
  • And a guy who will sell you a ‘pixel‘ on the Internet for a dollar (don’t laugh, he has sold them all and made his million!).
  • Or this company who make plastic ‘wishbones’ so there are no more fights over who gets the wishbone (does anyone still do that?)
  • Or this company who sell plastic balls to go on the end of your car aerial and make them look pretty!
  • Or the pet rock company that started in 1975 and swept the planet!

The big lesson for me has to be that it is impossible for us to ‘know’ whether a business idea is viable or not.

Some real stinkers have made millions and even more really great ideas have bombed. Learning to recognise and set aside our own prejudices and beliefs so that we can help the entrepreneur to explore and develop their business idea and manage there own exposure to financial and psychological risk must be an important professional development goal for many of us.

There is a link here to my earlier post on barriers to enterprise. ‘Adviser negativity’ surely has to be added to the list!

Let me know your favourite ‘business ideas that should never of worked’ so we can grow the collection.

Maslow on Management

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Maslow on Management

First published back in the 1960s Eupsychian Management made neither the best sellers list nor the bookshelves in airports and railway stations. In fact it barely sold its first modest print run. No doubt this was in part because the business book industry had yet to take off, and in part because of his obscure choice of title. Re-published as ‘Maslow on Management‘ almost 40 years later it seems to be creating a bit more of a stir.

Maslow was one of the the fathers of ‘Third Force’ or ‘Humanistic Growth’ psychology. (First force psychology was that of the Freudians and Jungians; second force was that of the behaviourists – Skinner and his pigeons.) Third force or human growth psychology was developed by Freud, Rogers, Fromm, Adler and Maslow as a serious attempt to understand human potential and how it can best be realised.

In the early 1960s Maslow spent a summer observing life in a business and maintained a journal that reflected his observations and thoughts on  the practice of management and the relevance of third force psychology to the world of commerce – and vice versa. This journal became ‘Maslow on Management‘.

Maslow was a contemporary of Drucker and one of the things he found was that much of what Drucker had written about effective and efficient management as a theorist and consultant with no psychological training was aligned with Maslow’s own thinking. Management theory and Third Force Psychology converged on a set of ‘truths’ about management and the realisation of human potential – individual, team organisational and social. Wow!

As Maslow said:

…this is not about new management tricks or gimmicks or superficial techniques that can be used to manipulate human beings more efficiently. Rather it is a clear confrontation of one basic set of orthodox values by another newer system of values that claims to be both more efficient and more true. It draws on some of the truly revolutionary consequences of the discovery that human nature has been sold short.

Barriers to Enterprise

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The Separation Wall - Palestine

I am starting a collection of barriers to enterprise – reasons why people do not put their enterprising ideas into practice.

My collections is a little small at the moment – so please help me by using the comments box to add to the collection:

  1. If I start my own business I will lose my benefits and be worse off – The Benefits Barrier
  2. I don’t have the ability to run my own business – The Confidence Barrier
  3. I don’t have any ideas for a new business – The Creativity Barrier
  4. Whatever I try to do will end in a mess – The Confidence Barrier II
  5. I don’t have any cash to help me start up a business – The Access to Finance Barrier
  6. I can’t start a business – who would look after the kids – The Childcare Barrier
  7. I haven’t got anywhere to run a business from – The Premises Barrier
  8. I haven’t got any way of getting around – the Transport Barrier
  9. If I start a busniess the taxman will not make it worth my while – The Taxation Barrier
  10. I don’t know how to go about employing people – The ‘HR’ Barrier

So please add to my collection – either new barriers or different examples of the barriers already identified. Then perhaps we can look at ways to remove them…