The old belief that the entrepreneurial spirit is killed by management systems is incorrect. Conceivably when a corporation has smaller amount than 100 employees, a trade can get by on less. However as the authors point out in this editorial, corporations are actually able to cultivate quicker provided they have powerful internal planning and control systems in place early on. They identify eight main classes that need managerial focus if firms are ever to achieve high growth: financial planning, financial evaluation, HR planning, HR evaluation, strategic planning, product development management, sales/marketing management and venture management.
Of these, tactical and fiscal planning are key ones to focus on from the beginning, and the authors consider these from the viewpoint of startups to glean insights into how best to adopt these measures over time. Supervisors, they say, also need to adopt the right mindset and be prepared to develop the necessary skills or else step aside if they don't have what it takes. Having business model or the best system in the world counts for nothing if it can't be correctly executed. Furthermore it is this ability of implementation that is truly required for creating ongoing reinvention over time, continual performance and high growth.
PUBLICATION DATE: September 15, 2010 PRODUCT #: IIR031-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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