Entrepreneurial Management

Test 1

Entrepreneurial Management is working, thinking and acting different; being unique in the way the organization is being managed. But how you do it? What does being different means? First is important to communicate ideas efficiently to the employees in a way everyone gets synchronized with the organization mind set.
In this case the leader has to be passionate and creative like a trueentrepreneur, so his energy flows through out the organization, without preaching what he doesn’t do. Innovation needs to be welcomed and encouraged weather it is accidental or not, in the end all knowledge can be turned into money, like in 3M where they created from a failed invention, a successful product called post it. This means not getting on an endowment effect where you only see how greator bad your product is, with out considering future improvements, so in the end is important to be passionate while still maintain focus, being able to see mistakes is important but the real deal is to turn them into opportunities. As mention in the L’oreal article revised in class, companies “Lose their drive because they think they have found the recipe for success, or become bureaucratisedagainst their better judgment, simply following a natural trend. Few of them know how to maintain the pioneer spirit that was theirs, at least at the very begin- ning.”
Turning failure into opportunity is a tough task but organizations with entrepreneurial management do it, for example in class we saw Coca Cola’s example on how to turn a huge marketing mistake into a learning process. Theyunderstood Coke true values and returned to basics wit the Classic Coke bringing memories to their consumers, first the launched New flavor of Coke and the only thing they got was the worst marketing ever because their competition was mocking them in public, but instead of backing off they understood what the consumer really wanted. Coke made their employees engage with the new project, they believedthey could upside down the terrible comments. But more importantly they accepted failure as a way to develop. In other words “The life of a company is a constant cycle: it must explore then exploit, then explore again and exploit, etc.” But in order exploit the company has to take the risk, and when failure comes, then lern and improve.
In entrepreneurial management failure is accepted as part ofthe creation process concerning the next big thing, this is believed by different companies like Google, L’Oreal, IBM, etc. Were people is pushed towards creativity, the manager tends no be more empathetic than be inclined towards criticism. Is important not to complement to much the worker, so then he could feel satisfied, instead of learning from success and improving in every new project. AsFrançois Dalle (L’oreal CEO) said “Discovering as yet unsatisfied needs and identifying new ones, constantly opening markets to new consumers, inquiring about their opinion of our products, these were my constant preoccupations.” Never be completely satisfied with what you have accomplished but instead look for the way to improve in an innovative way, by surprising the market and taking a risk.François Dalle once said “We can say that, at L’Oréal, we are ‘market openers’, because we believe that you can only find on a market what you have put there. It is never easy because in doing this you often face the resistance of numerous people within the company. Some of them are obsessed with analyzing the existing environment, are incapable of detecting possible openings, and may even deny theirexistence. Others shy away from risk: the administrative frame of mind takes over from the entrepreneurial spirit. My role, as head of L’Oréal, was to overcome this resistance. ”
Failure, as part of a creating process is not bad in fact is impossible not to fail, but failure as a result of sloppiness is what managers need to be aware of. But why do managers see failure as part a creation...