Entrepreneurship, there's no time like the present!

Entrepreneurs, a story of Innovation and rebirth!!..

Our economic outlook after the epically acclaimed banking crises along with subsequent economic “recessions” is finally looking like it’s changing with a positive growth trajectories ahead in key macroeconomic indicators across the globe. Business wheels of all sizes are starting to move a little easier and positivity is creeping back albeit cautiously given the state of our world today.

Many successful people whom I respect in business for their vision and achievements like Richard

Branson, Jeff Weiner, Warren Buffet et Al are all saying the same thing. Now is the time for entrepreneurs to launch their business ideas. They correctly state the economy is dependant on a rash of new ideas turning into new business success stories. They cite many economic factors, which are undeniably favourable for the successful start-ups with impressive upward trajectories for the right guy/gal with the right idea in the right place at the right time! I agree noting the entrepreneur faces enormous challenges in ‘climbing the mountain’ of business success that if surmounted brings enormous rewards to match the hard work and clever thinking behind that success. If I had an idea worth pursuing as an entrepreneur today, I would think about the following:

• a     Feasibility.  Is my idea, product or service one that is commercially developable in a specific market niche? Is there a market for my end product? Am I a market disruptor? Is my product susceptible to market disruption?
• b     Component parts of success. Is my business idea going to be ‘successful to market’ in the start up phase and if so, how? Will my success be based on what I put in place, or is circumstance affording me a lucky break? The former bodes well for a sustainable success story if predominant in ones conclusions. The latter will always feature in a success story, but if the predominant element, the story may well be short lived if successful changes/timely additions are not made/added to the business.
• c    Internal engine. What will be the business model for my idea? Do I have a business plan detailing the product plan(s), organisational structures and business processes both now and into the future as the business grows? Are my growth projection metrics comparing reasonably to my competitors?
• d     External structure. What will my enterprise look like 5 years from now? On envisioning size, will it be just 10 others, and/or just me or shall it be a national operation or international operation? The reasoning being that if one start’s with the end in mind, they will have chartered a journey that is a vision to be shared with those they bring on board. Early employ’s are critical to the success of a growing business especially when you share your vision.
• e     Risk Management. Is there a clear understanding of internal risks, financial and non-financial along with external risks such as market risks, country risks, political risks, etc? A detailed and comprehensive risk register should be established in the planning stages, which should influence the strategy, internal structures and operational processes of the enterprise.
• f      Values. Will what I am translate into a set of values for my enterprise? Only if one proactively thinks about it and maps it out. What values are kernel/core thus should be inserted as unchangeable into the business. I would also think about values in three areas, firstly the core/kernel ones that will guide the business to success or failure but will never change. The second being values that are not core or challenge core values thus are changeable to facilitate sustainable market success. Finally, one should consider how one imports new values and discards existing ones along the way. The two layers of values along with the process should form part of the enterprise mission statement.
• g     Finance. What financing is best? A kernel question for the entrepreneur who should consider very carefully the above points and drill down into the detail identifying contingencies for funding along the way. In this process, one should think about all the elements (business size, scalability, product demand, market access, market penetration, organisational structure, future plans) and then look at the cost/supply side of the enterprise seeing what finance is needed, how it will be got (loans/overdrafts/government agency backing/ equity from operations/venture capital/private equity/etc.) achieving the best “financial fit” for the organisation. When dealing with finance, be very aware of the trade offs for finance both now and into future on the basis of what will it cost in finance and non finance terms like cost of finance through future growth phases, FX risk, loss of business decision making control, etc. Your conclusions should be compatible with your overall business model, values, strategic plans and approach to market both present and future.

Finally, the entrepreneur has many well-documented hurdles to get over. Recent initiatives in the UK and other countries have made progress in giving a “little security” to start up entrepreneurs which is great.

However, failure comes at a price, and if new entrepreneurs are to be successful, their minds need to focus on the success of their venture, not the absence of the familiar social security net they enjoyed as payroll employees to their decision to ‘go it alone’. I think government can help here with a programme as part of the assistance package that delivers social security benefits to transitioning entrepreneurs for a period of time allowing more and more talented people to float brilliant new business ideas more freely. It’s a brave new world, which for the budding entrepreneur is even truer a saying. They also say an entrepreneur should “prepare to learn from failure in order to succeed” but maybe a more methodological approach could increase the success rate and longevity of the new enterprise in the market place.

Company Culture, what is at the heart of yours?

Where company culture is in your company’s future..     

Company culture means many things to many people over the years. It’s the label we give ourselves as a group of people working together for 8 hours a day doing things a certain way that derive a profit for our company and a paycheque for ourselves.  

Organisational culture (aka Business Culture, Company Culture) is defined nicely by business dictionary.com as “The values and behaviors that contribute to the unique social and psychological environment of an organization”. They go onto state that “It is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid”. So… what is your company’s culture, are you a good fit for it and if not, what can be done???

When we think of culture in business, we think mission statements, charters, policies and company events, which have a defined ‘cultural’ element to them. As we can see above, company culture is much more encompassing then that, and it truly affects us as human beings because we simply live it each and every workday. It doesn’t matter if it’s a two-man company or a large Multinational Organisation; company culture challenges our values, influences our beliefs and seeds contentment or discord in the deepest caverns of our hearts and minds over time.

In very broad terms, company culture can be broken out into four main types, adhocracy (creative) culture, clan (collaborative) culture, market (competitive) culture and hierarchy (control) culture. Adhocracy culture is a culture of temporary collaboration (e.g. project management) where leadership is more task centered with the team rather then delegated by a leader. Clan culture is a collaborative culture, which fosters mentorship and strong bonds of loyalty with consideration of others in the achievement of set tasks, goals and objectives. Market culture is a competitive outward looking culture that places the external transaction at the heart of the organisation. Hierarchy culture is the product of classical management theory and has a very strong command and control leadership orientation to it where communication flows from the top down with no room for feedback upwards.

Chart Source:  Clever Workarounds.com

I guess when we think of our company culture, we can see a little of all four types of culture and wonder if our view on our company’s culture is the overall cultural orientation of our company. To find out more, we now put on our detective hats and investigate our company to get to the heart of its culture. I personally think those in a company over 6 months will have a flavour of the company culture and it will not greatly change, but that doesn’t mean we should not investigate thoroughly… so hats on people, Sherlock Holmes would be proud!!

To start out, let’s see what kind of culture our company aspires to be by reviewing any cultural

statements, mission statements, organisational values and policies, employee codes of conduct and standards of operation along with formally published information on our company’s company culture. By doing so, let’s keep the following questions in mind:

• 1.     What type of environment is the company hoping to create for its employees? Is it participative, collaborative, instructive, directive, coercive, punitive?
• 2.     What type of business is the company in and what mix of collaboration to direction is needed to optimise workplace efficiency and enable positive impact by you in your role as an employee?? Does the environmental clues found in question 1 aid or inhibit this cultural mix the company is seeking to create?
• 3.     That level of cultural “follow up” is there? Does the company “expect” its employees to be respectful, cordial and supportive in its documentation? If so, how does the company formally follow up on the cultural elements it “expects” from its employees in creating a suitable workplace environment and culture?
• 4.     What type of management/leadership style does the company endorse? Is it consultative, participative, authoritative or dictatorial?
• 5.     Is there clear evidence in the documentation that the “cultural message” is coming from the top? A “CEO Memo” is great, but is there evidence in the documentation that the CEO is involved at a senior level in the cultural development of the company?
• 6.     Does all the cultural clues found in the formal documentation paint a coherent and clear picture of the company’s culture?

Upon review of the formal documentation, let's move to the next stage in the investigation, which is a review of experience bearing the cultural picture identified in the first step above. In reflecting on one’s own experience or that of a friend in the company, one should focus on the following questions to ascertain more insight into the company culture:

• 1. Is the company culture identified in the formal documentation review the same when considered against one’s experience and/or that of a colleague and/or friend working there?
• 2. If not, then one should review the companies “modus opperandi” to understand the  differences both written and unwritten that exist and what kind of company culture is there in reality?
• 3. Does the active company culture come from the very top, or do functional silos, departments or powerful people in the organisation, drive it?
• 4.  Is the actual company culture stable, clear and definable?
• 5. Is the identified company culture reconcilable to your personal values, beliefs and aspirations for life?

In my view, the investigation leads us to the final point number 5 which is the kernel question, are we comfortable with our company’s culture to a point where our personal values are not demeaned, our core beliefs offended and our aspirations for life soured by bitter experience to come???

If “yes!” then great, we are all set. If “no!” then we need to estimate how reconcilable those differences are, and are we willing to change to reconcile those differences allowing for a long career with the company where we would feel like we belong? Most of us fall into this category in my view. Whilst the changes made are in the core of ‘our inner self’, they are minor enough in nature to allow for a wonderful employee-employer partnership over the longer term. However, if the changes required are major at the core ‘inner self’ of the employee, then he/she would have to radically change as person in order to facilitate a longer-term career with the company. Its my considered opinion that this is a recipe for disaster as performance, productivity and positive impact will accompany happiness as it escapes the poor unfortunate employee and by extension the employer over time.

If you find yourself as an employee with this heart felt dilemma, don’t waste time, reflect on what type of company culture suits you, do your research on what industries and companies are disposed to a cultural type that suits you. Look for direct matches to your “inner self” where you keep your core values and beliefs. Look for partial matches to a level that you are willing to change to enable a successful long-term relationship with your employer. Rank them by preference and build your prospective employer list, network through social media to gain the attention of these employers and get another job. After all, life is too short to see happiness become a bittersweet memory!

On a final point, they say, “the more successful you are, the happier you become”… I don’t necessarily agree. Do we exchange our happiness for money? Our metrics for employment often measure in salary, benefits and perks of association only. What we often fail to release that if we want to be happy in life, we need to feel comfortable in our own skin fulfilling our purpose and that comes with our work and the relationships we forge in our working environments, which in turn define and reinforce a company culture over time. If we take the time to understand the company culture in the early days of employment, I submit we don’t necessarily have to exchange happiness for money. We can have both in a complicated balance of elements that is only truly understood by the individual whom embraces company culture in a productive ‘quid pro quo’ which compliments one’s life purpose bringing happiness as an intrinsic benefit to everything we do.