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Drucker on Economic Development and the Value of ‘No-tech’

March 1, 2010 by admin

Above all, to have ‘high‑tech’ entrepreneurship alone without its being embedded in a broad entrepreneurial economy of ‘no‑tech’, ‘low‑tech’, and ‘middle‑tech’, is like having a mountaintop without the mountain.

Even high-tech people in such a situation will not take jobs in new, risky, high‑tech ventures. They will prefer the security of a job in the large, established, ‘safe’ company or in a government agency.

Of course, high‑tech ventures need a great many people who are not themselves high‑tech: accountants, salespeople, managers, and so on.

In an economy that spurns entrepreneurship and innovation except for that tiny extravaganza, the ‘glamorous high tech venture’, those people will keep an looking for jobs and career opportunities where society and economy (i.e., their classmates, their parents, and their teachers) encourage them to look: in the large, ‘safe’ established institution.

Neither will distributors be willing to take on the products of the new venture, nor are investors willing to back it.

Peter Drucker – What Will Not Work

Filed Under: enterprise, management Tagged With: barriers to enterprise, community development, community engagement, development, diversity, enterprise, enterprise education, management, operations, policy, professional development, social capital, strategy, transformation

The Leash Fetish

February 26, 2010 by admin

  • Unleashing talent
  • Unleashing creativity
  • Unleashing potential
  • Unleashing enterprise
  • Unleashing entrepreneurship

These aspirations I see nearly every day of my working life.  There is always something or someone to be ‘unleashed’.

But, where is the leash meister?  The evil one who holds us back?

Most systems of parenting, education and employment are designed to establish control, compliance, conformity and predictability.

Perhaps there are some systemic changes that we might make so that the challenge of unleashing is consigned to the history books?

But the real challenge is to recognise that with the transition to adulthood the leash IS off.  

We are free to choose and to act.  But like a dog that has been chained up for too long – when unleashed many of us have little desire to go beyond our former boundaries.

We ‘know’ our place and we stick to it.

The role of the enterprise educator is not to teach about business.  Nor is it to parade in front of students waving tenners inciting them to grab it!  Nor to put on yet another inspirational conference with a secret millionaire, dragon, apprentice or teenage entrepreneurial prodigy.

It is to help us to recognise that the leash has been slipped.  And we can begin the journey of becoming the person that we want.  And to show us how we can help ourselves and our peers to explore what we might be able to achieve through association, collaboration, perseverance, learning and skill.

This is the role of the enterprise educator.

Filed Under: enterprise, entrepreneurship, management, Uncategorized Tagged With: community development, development, enterprise coaching, enterprise education, entrepreneurship, inspiration, management, operations, power, professional development, self interest, strategy, training, Uncategorized

Mentoring Enterprise – the corruption of a powerful process?

February 26, 2010 by admin

According to Tim Smit over at the School for Social Entrepreneurs all social entrepreneurs should demand a mentor. Far be it from me to disagree with such a luminary but I think not.   It is this kind of sloppy thinking that says we should ‘universalise the particular’ that leads to powerful processes of creative learning being undermined.
Entrepreneurs should seek to develop clarity on what their learning priorities (and which ‘gates’ they need ‘keepers’ to open), and they should be clear on how they are going to learn.
But the truth is that mentoring, while transformational for some, is next to useless for others.
We all have our preferences for learning process.  This truth is a problem for many enterprise support organisations who default to the ‘we’ll provide you with a mentor’ setting because they are more focussed on delivering their neatly pre-packaged service offer, agreed with funders no doubt, than they are in really understanding the needs of their service users.
Many of the mentoring enterprise schemes that I see use poorly trained mentors with even more poorly trained mentees.  There is a lack of clarity about the importance of choosing and using mentors in lifelong professional development, as the provider short cuts this with a ‘matching process’ to force start their own mentoring scheme.  No wonder that often the results are disappointing.
Such schemes tend to put the mentee in a passive role.  Mentoring becomes a process that is done to them rather than a process to help them find the personal and professional relationships that they need to help realise their enterprising vision.
Mentoring is an immensely powerful tool for professional development and the transmission of wisdom.  However poorly designed mentoring programmes, driven by big businesses CSR ambitions, and wads of taxpayers cash have undermined its credibility in the enterprise sector for many.

All entrepreneurs should understand the power of the mentoring process and how it operates in the REAL world (where it is not funded by taxpayers) as it is likely that most of them might need mentoring at some point in their career.   But is should never be a set component of enterprise development programmes and it is certainly not right for all.

So let us stop grabbing the cash and setting up the schemes and develop an understanding of the mentoring process that will serve our entrepreneurs and our communities for many years to come.

Filed Under: entrepreneurship, management Tagged With: development, enterprise, enterprise education, enterprise journeys, management, mentoring, operations, professional development, strategy, training

It’s not just about raising aspirations…

February 19, 2010 by admin

This was one of the key points from the Enterprising Places Network event run by Enterprise UK in West Yorkshire yesterday:

  • It’s not just about raising aspirations but about raising realistic aspirations.
  • Projects and initiatives need to adopt a sustainable approach and offer support in long-term engagement.
  • Partnership working presents a great deal of opportunity.
  • Enterprise is often about taking risks.

And, yes, bears do sometimes go to the toilet in the woods.

Contrary to the blog and tweeting from the workshop (done in real time by a rep from the Enterprise UK PR company) for me at least the Enterprising Places Network event was ultimately a disappointment.

Our hosts at the Cottingley Cornerstone Centre were friendly and and the lunch was substantial – but the acoustics in the room were terrible.  I hate to think what it is like when the centre is full of children.

But the problems for me were the ‘case studies’.

After introductions and context setting, Wakefield District Housing kicked us off with Chief Executive Kevin Dodd talking about the importance of carrots and sticks (I think he called them incentives) to encourage people to be more enterprising.   And by more enterprising it seemed he meant mainly getting back into the labour market.  Indeed this theme about job creation and routes into employment kept recurring.  There is more to an enterprise culture than tackling worklessness.  If someone’s behaviour is motivated primarily by the way that bureaucrats arrange carrots and sticks it cannot be described as enterprising.  Compliant, yes.  Enterprising, no.   So think long and hard.  Do we want our tenants to be compliant fodder for employers or enterprising?

We then heard a little about what Wakefield District Housing is actually doing to promote enterprise.  This consisted mainly of sending young people on Outward Bound Courses and providing mentoring in Wakefield secondary schools.    I worked for Outward Bound for a couple of years and have much time for them.  They develop many things, teamwork, leadership, followership – but I am not certain about enterprise.  I would need to be convinced.

And I am not clear how mentoring programmes help individuals to become more enterprising.  Especially when mentors encourage young people to take their eye off of their dreams and start to think seriously about Plan B.  ‘I know you want to be bassist in a rock band but really, don’t you think you should apply to study plumbing at the local FE college?’   ‘We need to be realistic with our aspirations’.  I personally think this shows a weak understanding of how people hold and transform their dreams and ideals without being told what is realistic by ‘authority’ figures.  It is not our job to decide what is possible….

The main reason schools welcome Mentors is because they can provide a little bit of additional 121 support to help pupils at school.  It is not about making them more enterprising. It is about improving school performance.   Too often enterprise is snuck in on the back of ‘improving educational attainment’ or ‘improving attendance’ ie providing incremental support to the mainstream pedagogy, curriculum and assessment, when in fact it offers radically ‘different keys’ to ‘different kingdoms’ for an increasingly large group of pupils that mainstream education fails to serve well.

But what was most puzzling to me was why a social landlord in particular would engage in such activities.  In what way does this build on the relationship between landlord and tenant?    Mentoring in schools is a fine way of delivering corporate social responsibility.  Personal development too is extremely worthwhile.  But neither of these builds on the unique relationship between landlord and tenant that I had hoped the workshop might explore.

Next up it was Connaught with a re-hash of last years Strictly Come Business competition.   Now I have problems with most types of ‘Enterprise’ competition and especially with those that base themselves on the Dragon’s Den format.  Dragon’s Den is  not a competition.  If investors believe a business offers a return, they invest.  You don’t have to ‘win’.  You just have to be investment ready.    In my opinion most winners of Dragon’s Den style enteprise competitions are not yet investment ready.  The journey to investment readiness can take years.

Does this competition format provide a serious and sustained methodology for creating an enterprise culture?  Or is it an easily costed and managed process that ticks the enterprise boxes?

If we put a leaflet through a door that says ‘Do You Have A Big Community Idea?’ most people will say ‘No!’.  The leaflet goes in the bin and those that might benefit most from our help to think in  more enterprising ways are lost.  At best we find a small minority who are already thinking ‘enterprise’ and give them a leg up.  This kind of enterprise skimming provides the sweet illusion of instant results but in reality changes little.  Indeed I think this kind of approach makes many of the 10 Commonest Mistakes in Encouraging an Enterprise Culture.

Networking over lunch, provided by local social enterprise Daisies, was fine and the presentations after lunch were good.  I especially enjoyed finding out more about CREATE and how they operated.  Competing on the basis of quality products and services rather than on the moral high grounds of SE seems like a winning and novel concept!

And a final talk through the development of Cottingley Cornerstone by our hostess for the day just re-affirmed how bloody hard this social enterprise game can be.  On a shoe string and continually seeking funding – but only that which fits with their mission and objectives.  Fingers crossed it stays that way.

My only problem with the afternoon sessions was that they seemed only loosely, if at all, connected to the theme of enterprise and social landlords.

So my main take aways from the day:

  • Social Landlords are coming under pressure from policy makers in Whitehall and the Housing and Communities Agency to do more to get their tenants to be enterprising.  The interest in enterprise is primarily policy led rather than informed by any real insights into how it might help to provide a better housing service and better places to live.
  • Landlords are not well placed to respond to this pressure because of their ‘unique’ relationship with tenants and also their relative lack of knowledge and understanding about developing an enterprise culture. It is not about ‘incentives’.  It is about power and self interest.
  • Just to be clear, I don’t think being a landlord helps if you are trying to promote behavioural change.  The tenants will always be looking for the ulterior motive.  For some housing cooperatives this maybe less of an issue.  But when did you last have a landlord who you could really trust to be working in your best interest rather than theirs?
  • There is an apparent willingness to adopt what has not worked in the past rather than to explore innovative approaches to building an enterprise culture.
  • There seems to be a conflation of enterprise with entrepreneurial.  A belief that more enterprising means more business-like.

So, as I said on my evaluation, the day was good in parts – although I  think we failed as a group to really get under the skin of the role of the social landlord in supporting an enterprise culture.

Filed Under: entrepreneurship Tagged With: barriers to enterprise, community development, community engagement, enterprise, enterprise coaching, enterprise education, entrepreneurship, operations, professional development, social enterprise, strategy

Why IDB is Not So Smart…

February 15, 2010 by admin

Business Link is built around a proposition called IDB.  Inform, Diagnose and Broker.

Providing access to information, diagnosing problems, and brokering in people who can provide relevant specialist help.

As well as facing some tricky practical problems (making brokerage effective and impartial being just one) there are more significant problems with this approach.  It focuses on problems and weaknesses and assumes that these can best be managed by introducing the owner manager, or the management team, to an external consultant with specialist knowhow.

In spite of some very practical problems in making this work (has anyone got a brokerage platform that really works yet, or a methodology for diagnosing that is used consistently, objectively and effectively by all brokers?); the main problem is the occasional failure to get to the nub of the issue –  the make up of the entrepreneurial team and the managerial imbalance that, more often than not, is the root cause of the problem.

If a business is struggling with some aspect of its development, this is a clue that there maybe a weakness in the management team in that area.  It maybe a lack of knowledge.  Or a lack of passion for the specific activity.  It maybe that the knowledge and passion was never present in the management team (we don’t do enough to help entrepreneurs build a robust management team before they start up).  Or it may have just been lost over time as one, or more,  of the management team becomes complacent or jaded.   More often than not the underlying problem is in the current competence and passion of the owner manager or management team.  But this gets overlooked in our rush to broker in a solution.

A specialist is brokered in and the problem addressed.  Temporarily.  Often with limited success.

Why?

Because of the nature of the underlying problem.  There is no-one in the management team who really cares about this aspect of the business who has the passion and the tenacity to implement the recommendations of the specialists.  Giving marketing advice to someone who is not passionate about marketing is unlikely to lead to a roaring success.

The client often does not need brokering to a supplier of a one-off specialist solution.  They need to be helped to confront the structural weaknesses in their management team that allowed the problem to arise or the opportunity to slip by.

Filed Under: enterprise Tagged With: Business Link, development, entrepreneurship, management, professional development

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