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The Difference Between Entrepreneur and Executive
There's an unwritten rule in enterprise that after a company goes public, the unique founders must be ousted. The parable: entrepreneurs are great for getting an organization started, however not so nice when Wall Street is looking over their shoulder. Part of this thinking is that founders of companies are mavericks, passionate doers with a vision, nontraditional of their approach to administration and outspoken - the kind of rabble rousing that makes buyers uneasy. (What is rabble rousing anyway?)
Passionate in their approach, some are seen as little more than televangelists who work their corporate gospel for all it's worth, however when confronted with real management challenges, their methodologies are revealed to be a house of cards.
To put it mildly, this is a gross generalization and highly inaccurate.
Case in level, Steve Jobs was an entrepreneur with a vision - created the greatest person-pleasant computer on the earth and took a byte (pun meant) out of IBM's market dominance. Passionate and visionary, Jobs had in his corner Steve Wozniak to handle the construction of Apple. Earlier than these guys, working on a pc required intensive knowledge of code just to do a simple task. Many a computer science main looked down at those that couldn't understand the basics of a computer. Then Apple came along and changed all that posturing by inventing a consumer-friendly laptop that required no code, no programming knowledge, just plug and play. With their visually intuitive interface, Apple redefined what working on a computer meant. They modified the pc business forever by creating computers for the rest of us.
So, it wasn't a thriller why Mac became the pc of choice for graphic designers - with it's focus on the graphical person interface and out of the box ease of operation, an Apple could possibly be utilized by anyone. Before the Macintosh, all typesetting at ad businesses and design corporations had to be sent out to a type house to be set into these neat rows you see in magazines and newspapers. You never knew what the type would look like until it came back. One mistaken calculation could ruin a piece. Calculating typefaces was a science only doled out to designers with a propensity for math. With applications like Pagemaker and WYSIWYG (what you see is what you get) interfacing, Apple ruined independent typesetting firms overnight. Now all typesetting may very well be executed in house out of your deskprime and modifications may very well be made instantaneously. Apple was the David that slew Goliath and Apple buyers began to take on a cult-like obsession.
But all was not well at Apple. Jobs' direction for the company seemed at odds with CEO John Sculley. An influence wrestle ensued and the board of directors sided with Sculley - Jobs was forced out, and the press had a area day. To an outsider it made no sense. To a seasoned businessperson, it wasn't soon enough. The founder whose ideology was what introduced the corporate to its current stage of profitability and notoriety was seen as a hindrance to the subsequent section of success. The parable of the entrepreneur, unable to take the company forward, prevailed.
At first, the executive crew took Apple down a road where it had never been before, and profits have been the proof that each one was working. Time would inform, nevertheless, that a new CEO, a number of years of lack luster sales, and a low stock value are enough to make even essentially the most seasoned board of directors realize they might have made a mistake. The Macintosh started to look like an IBM clone. Just one other computer.
For obvious reasons, Jobs was asked back in 97 and the Apple model began to make a comeback. The entrepreneurial spirit returned and Apple stopped making products that looked like gray boxes and started putting the ergonomic designs back into their industrial design. Classes discovered from Jobs' NEXT computer system have been integrated into the new PowerMac lines, and the iMac introduced the Apple model back to profitability. This was an entrepreneur with executive and strategic execution.
Jobs brought the passion back to Apple. The myth of the entrepreneur had been broken. And let's not forget Jobs' funding in Pixar before it was acquired by Disney. A lot for the parable of the entrepreneur not understanding real business.
Conversely, executives who arose by the ranks of Wharton, Yale or Harvard realized the ropes of hard work and numbers crunching, eventually touchdown a key leadership position after quite a bit of seasoning, are just as valid. Many a business wants this style of management to operate and with over 50 million companies in the United States, I might say the most importantity of them operate under this management structure.
Just look on the number of law, accounting and engineering firms that should have critical systems in place to operate. This isn't just a happy accident, it's tried and true enterprise 101. Many instances executives are brought in to clean up the massive mess created by a founder who did not know any better.
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