THE MANAGEMENT TEAM IN ENTREPRENEURSHIP

MONEY SHOW Athens, 19th December ‘09 THE MANAGEMENT TEAM IN ENTREPRENEURSHIP Emmanuel C. Kondylis, Ph.D. Professor, University of Piraeus Member, International Entrepreneurship Academy (Jonkoping University, Sweden) e-mail : snetha@ath.forthnet.gr

THREE ELEMENTS IN SETTING UP A SUCCESSFUL COMPANY Business Idea New Enterprise Management Team Capital Source: Looser, U. & Bruno S. (2001), “The New Venture Adventure”, Mc Kinsey & Co

IDEA • Business Idea: • The Beginning: Inspiration (5%) • Developing the Business Idea: • Lengthy Process: Perspiration (95%)

CAPITAL • Promising Projects, usually, have no funding problems.

MANAGEMENT TEAM • It is the critical element. • One-man bands have no potential for growth.

DEVELOPMENT PROCESS Realization of Gains Financing Decision Attention from Investors Source: Looser, U. & Bruno S. (2001), “The New Venture Adventure”, Mc Kinsey & Co

STAGE 1: DEVELOPING THE IDEA • Product/ Service • Features/ Markets • Process • Procurement, Production, Distribution

STAGE 2: BUSINESS PLANNING • Designing the overall picture • Limiting Risk • Budgeting

STAGE 3: START-UP & EXPANSION • Organization • Processes & Organization Chart • Marketing • Entry, Competition & Technology Considerations • Expansion • Production Capacity, Markets, Products

STAGE 4: ESTABLISHED BUSINESS • Profit Realization: • Income Stream • Selling part or all of the Business

MANAGEMENT TEAM “ I Invest in Management not Ideas” Eugene Kleiner Venture Capitalist

TEAM VS GROUP • Team: 1 + 1 = 3 => The combined effort produces results that are greater of the sum of the individual performances.

SKILLS: HARD • Technical Skills • Technology • Finance • Project Management • Marketing • Sales • Production, etc. • IQ: Level of Technical Ability (Intelligence)

SKILLS: SOFT • Personal Skills • Self Awareness (“I”) • Self Management (Motivation) • Social Awareness (“Others”) • Relationships Management (“Relationships”) • EQ: Level of Emotional Intelligence

HUMAN PERFORMANCE QUIZ: What percent of peoples’ potentiality manifests itself in the workplace on average?

HUMAN PERFORMANCE Human Performance Manifested at Work: Less than 50%* * Evidence: Level of Performance Outside Work (Hobbies) or Under Crises.

HUMAN PERFORMANCE External Blocks of Human Performance Company Structure, Culture & Leadership that discourages initiatives

HUMAN PERFORMANCE Internal Blocks of Human Performance: Lack of Self-Confidence (perceived ability)

Self-Awareness Self-Management (“I”) VALUES Self-Mobilization + Optimism (++) Social Awareness Empathy (“Others”) • Customers • Shareholders • Personnel • Society Relationship Management (“I”+”Others”) Result(s): Results:

ENERGY - ATTITUDE MODEL Attitude Energy

ENERGY - ATTITUDE MODEL Attitude Positive Negative Low High Energy

ENERGY - ATTITUDE MODEL Attitude (-, +) (+,+) Positive (+) (-,-) Negative (-) (+,-) Low (-) High (+) Energy

ENERGY - ATTITUDE MODEL Attitude Players (+,+) Positive Negative Low High Energy

ENERGY - ATTITUDE MODEL Attitude Spectators (-,+) Players (+,+) Positive Negative Low High Energy

ENERGY - ATTITUDE MODEL Attitude Spectators (-,+) Players (+,+) Positive Walking Dead (-,-) Negative Low High Energy

ENERGY - ATTITUDE MODEL Attitude Spectators (-,+) Players (+,+) Positive Walking Dead (-,-) Well Poisoners (+,-) Negative Low High Energy

ALIGNMENT MODEL RESULTS

A FINAL WORD: WORK WITH ENTHOUSIAM & SYSTEMATICALLY!!!!!!!

THE MANAGEMENT TEAM IN ENTREPRENEURSHIP