THE FLAW OF ENTREPRENEURIAL MODE

Posted: January 14, 2016 in Uncategorized

Managers handling small/starting businesses do not have to always rely in entrepreneurial mode; rather, they can also employ the adaptive and planning modes as their view in strategy- making immediately. Why? It is because growth (the dominant goal of entrepreneurial mode) can also be achieved through either careful planning or constant adaptation to the environment of the industry the firm belongs to. Bold decisions, usually associated with high-risk consequences, are not actually ‘practical’ simply because we are not certain of its outcome. And the ideas of innovation may take part through the adaptive mode by continuously adjusting to the varying demands of consumers. Furthermore, growth and/or expansion, decision-making, and innovation are all can be realized via the combination of the two other modes: adaptive planning.

 

First, managers may improvise and adjust as to what they see best in organizing the firm. As Henry Mintzberg and Joseph Lampel (1994) cited in their article entitled Reflecting on the Strategy Process:

“The evolution of strategic management obeys different principles because it is driven by ideas and practices that originate from qualitatively different sources… Strategy is pushed along by sheer creativity of managers, because they explore new ways of doing things.”

This statement could pertain to entrepreneurial mode since it show that the power/decision lies with the manager. However, the “new ways of doing things” may refer to unconventional approach such as planning or adaptation. This could lead to discovery of new things: innovation.

 

Second, patterns affects the strategy-making of a manager who practice entrepreneurial mode. As Henry Mintzberg (1973) noted “Some organizations appear to develop cyclical patterns in which periods of entrepreneurship are alternated with periods of adaptiveness…” Due to the “cyclical patterns”, managers will eventually adapt to the changing atmosphere and perhaps, even create plans to guide the organization as it operates. Those patterns, once figured out, will eventually result to the continuous improvement of the organization: growth and development.

 

Lastly, risk is something that managers should avoid as much as he/she could possibly can, if not, minimize it. As stated by Henry Mintzberg (1973) in Strategy-Making in Three Modes:

“Formal planning follows a stepwise procedure in which particular attention is paid to the cost-benefit… the entrepreneur, but to avoid risk and move in incremental steps, like the adaptive strategy-maker.”

Executive officers/managers want the best for their companies. By observing the combination of adaptive planning, they could create a win-win situation where risks will be eliminated, if not minimize.

 

To sum it up, managers handling small/starting businesses do not have to always rely in entrepreneurial mode as their general view. Growth, opportunities (innovation), bold moves (risk-factor), and centralized authority are the chief characteristics of this concept. All these can also be accomplished, if not superior, through the use of adaptive, planning, and adaptive planning modes, respectively. Such measures will create innovation, promote growth, and minimize risks. In the end, only the strategy of the manager will dictate the outcome of the company and its stakeholders.

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