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Turning Entrepreneurs into Executives

By Michael Stern 23rd April 2008


While Canada Inc. faces many challenges, there is one thing it has always done well: turn out leaders. Through training, peer pressure or osmosis, our corporations have transformed generations of impulsive recruits into thoughtful, accountable and strategic professionals.

But there's one breed of business leader that hasn't enjoyed this finishing school: entrepreneurs. Often starting businesses in their shirtsleeves, entrepreneurs tend to be creative, energetic and visionary. But many lack the polish and self-awareness created by the character-building protocols of big business, with their consistent emphasis on teamwork, systems and self-discipline. And this deficiency will eventually take its toll.

This is not a slam against small business. But I worry that many entrepreneurs in Canada lack the polish, management depth or long-term vision needed to succeed in today's more competitive markets. Management-by-instinct only take you so far these days.

As a business owner, I know the pressures of meeting payroll and the need for constant innovation. But I'm grateful for early years of training in large organizations, which taught me self-discipline, organization, and respect for others and their time. It's this combination of entrepreneurial instincts and professional habits that has helped our firm serve many of Canada's biggest organizations.

Business owners who specialize in shoot-from-the-hip communication and impulse decision making won't land the deals they need if their approach lacks professionalism. And entrepreneurs who neglect basic management tools, such as empowering subordinates, may be considered too risky to partner with. While you may be happy to bet your company's future on your determination not to get hit by a truck, potential allies may not.

So how can intuitive, self-taught entrepreneurs become more seasoned, productive leaders without losing the distinctive entrepreneurial "smarts" that made them successful in the first place?

Here are three areas to focus on:

• Delegation and empowerment:
  As your company grows larger and more complex, you can't do it all any more. You have to learn to let go and trust others.
  
  In some small businesses, everyone reports to the president. But if you're directly supervising more than seven people, you're supervising nobody. You need to create a hierarchy of reports. Delegating involves creating systems and metrics to guide other people's performance. For an entrepreneur, this concept takes some getting used to. But you won't regret it when you realize how much more dynamic and creative people can be when you start trusting their initiative.
  
  Don't worry: empowerment doesn't have to be "all or nothing." Start by giving people specific, limited responsibilities. As they progress and succeed, you can give them more to do. Your job shifts from overseeing them to working with them to develop their own objectives and measurements. Then you can spend more time on the higher-value tasks.



• "Others-oriented" communication:
  Some entrepreneurs get too wrapped up in their own point of view. As your business gets bigger and you get farther from your customers, this failure to identify other people's needs can prove fatal.
  
  Obviously, misinterpreting customers' needs can be dangerous. But so is calling your banker for a loan without assessing the risk from the banker's point of view so you can tailor your approach. This applies to employees, too: How can you build an aligned team if you're not considering what's in it for them?
  
  Without a boss to please, many entrepreneurs never learned to listen to others. Start by considering the impact your actions have on others. Ask simple questions such as, "How can I help you solve your problems?" and "What do you think we should do?" You may be surprised with the answers.



• Process orientation:
  Some entrepreneurs still run their company on the back of an envelope; or in their heads. But as your business grows, and you have to explain more things to more people, you need more tangible (and measurable) systems. If nothing else, it's nice to have procedures to review whenever things go wrong, so you can learn to avoid those mistakes next time.
  
  Some entrepreneurs start their businesses to get away from other people's rules and routines. But when you establish sensible processes and systems, you'll find they actually liberate your employees to complete tasks without direct supervision because they will have parameters they can work within. Which could save you hours of worrying a day —and add years to your life.

But let's not throw out the baby with the bathwater. Canada's entrepreneurs are a national treasure. And there are ways to smooth out an entrepreneur's rough edges without destroying the confidence and vision that made them what they are. Keep the stuff that works. Then add more to make the package even better.