According to a leading author, there are three skills necessary for an
Entrepreneur to win. However, the business and the entrepreneur will both be
much more successful if the entrepreneur DOES NOT personally perform all
three functions.
by Bill Dueease
Publisher
Michael Gerber wrote a very popular book entitled The E Myth
Revisited about the myths of Entrepreneurship. He explained that
there are three skills necessary for an Entrepreneur to win.
Gerber said that entrepreneurs must posses and exercise all
three of the following skills to succeed at business:
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Technical Skills
Managerial Skills
Visionary Skills
The relationship between the three skills and the functional
needs of the business
Gerber was only partially correct. He
leaves readers with the impression that the entrepreneur (alone)
must constantly possess and exercise all three of these skills
for the business to succeed. A key distinction is that the three
skills represent the three functions of the business that must
be completed for the business to succeed. The other key
distinction is that the entrepreneur does not have to perform
all three functions personally. In fact, the business and the
entrepreneur will both be much more successful if the
entrepreneur DOES NOT personally perform all three functions.
How the three functions determine the success of the business
The success of a business will rarely exceed the level of
poorest execution of the three functions. For example, if the
entrepreneur performs the Technical and Visionary functions at
an excellent level, but performs the Management function at a
poor level, the business success will rarely rise above the poor
(Management) level. Therein lies the dilemma. The business is
limited to the lowest level at which these three functions are
performed.
Yet, it is extremely unlikely that any one person (in this
case the lone entrepreneur) can exercise all three functions to
a high enough level at one time to generate the expected
business success. Hence, businesses where the entrepreneur must
personally exercise all three functions will rarely succeed. Let
s look further at each of the business functions to learn why
this is true.
The Technical Function
The Technical function of a business requires someone to
actually perform the duties of that business which attracts
payments. This could include repairing air conditioners,
extracting teeth, painting houses, writing computer programs, or
installing tile. People who do the technical work have almost
total control over what they are doing, they actually do
something tangible, and they receive almost instant feedback and
gratification. This is the doing function.
The Managerial Function
The Managerial function of a business requires someone to
direct, coordinate, and organize the business activities of
other people (and themselves) to achieve the daily and weekly
success goals. People who perform the managerial function have
much less control, because of reliance on others to actually
perform the technical work, and they have delayed gratification
of about one day to a week.
The Visionary Function
The Visionary function of a business requires someone to look
years into the future, set goals and organize the business, so
that current activities will contribute to the completion of
these goals. People who perform the visionary function have
virtually no control, because they must rely on others to
actually perform the managerial and technical functions, and the
many unforeseen things that will happen during the years. They
perform even less, if any, doing type of work, and have delayed
gratification and feedback of about one to five years.
You can see that the type of skills, activities, control and
gratification periods vary widely for these three very different
functions. These wide differences are the reasons it is so
difficult for any one person to perform all three functions
simultaneously at a level high enough for the business to
succeed.
If this is true, then how do entrepreneurs get all three
functions executed well enough for the business to succeed, if
they don't do it themselves?
Entrepreneurs have others perform; at least, one of the
three functions for the business. We are listing several
possible methods entrepreneurs can have one or more of the three
functions successfully performed by others.
The Partnership solution
The simplest way is to have a business with two or more
partners, who execute different functions. This is a very common
success tactic. Do the names of Gates-Allen, Hewlett-Packard,
Jobs-Wosniac, Disney-Disney sound familiar? They succeeded in
large part because they had at least two people accomplishing
the three functions from the outset. Sometimes, it appears
easier to go it alone, but if you can find a partner who wants
to and is effective at performing one of the three functions,
you are way ahead of the game.
As a side note, the most frequent reason business
partnerships break up is because the partners are too much
alike. Partners with like interests and personalities want to
perform the same functions and compete to do so, while not
paying attention to the other functions. Friction occurs and
partnerships or businesses dissolve. How often do two
programmers, or two electricians, or two salespeople, or two
mechanics, etc. partner up only to see their partnership and the
business implode because they focus on the same function at the
expense of the others?
The Hiring solution
Another way to is to hire someone to perform one of the
functions. Normally, the function that is the easiest to hire in
is the technical function. However, this fact frequently creates
a conflict with entrepreneurs. Normally, entrepreneurs begin
their business by performing all three functions, including the
technical functions themselves. The baker bakes, the plumber
plumbs, the graphic artist does graphic artistry, the printer
prints, the accountant accounts, and the list goes on. The
sooner entrepreneurs can have someone else perform the technical
functions of the business so they can focus on the management
and visionary functions, the sooner the business will start down
the road to success. When entrepreneurs have others execute the
technical functions they transition from being a technician to
becoming a business owner.
The Franchise solution
However, if you are excellent at performing the technical
functions, you may want to bring in someone to perform at least
the visionary and probably some of the management functions. The
franchise structure of business has been used for years to allow
performers of the technical functions to utilize the franchiser
to perform the visionary functions and provide considerable
guidance in performing the management functions. Look at the
successes of the McDonalds, Burger King, Pizza Hut and other
such franchises. The headquarters of each of these groups
perform all of the visionary functions and design and teach a
large part of the management functions. The franchisee performs
the technical functions and some of the management functions.
Through this separation of duties all three functions get
performed exceptionally well to produce great successes.
A key to entrepreneurial success
One of the critical keys to entrepreneurial success is to
discover which of the three functions you have the greatest
desire to perform and will be the most successful at completing,
and which functions you have the least desire to perform and at
which you will probably be the least productive. Once you have
made this discovery, find a way to have others perform the
functions that you do not want to do. You will want to join
forces only with people who have a strong desire to perform the
functions you do not want to do and have a strong desire to
avoid performing the functions you love doing.
It really comes down to creating the best fit for yourself
first and then creating a best fit for the people you have who
perform the other functions. It is almost like the sport of
baseball. There are nine positions in baseball that must be
played well by all nine players in order for the team to
succeed. In the entrepreneurial small business world there are
three positions that must be played well for the business to
succeed. Pick the position you want first then and have others
play at least one, if not both, of the remaining two positions.
This way you and the others who are executing the other
functions, will be much more productive, have more fun, and the
business will thrive.
Everybody wins!
About the Author:
Bill Dueease of The Coach Connection, where connecting great
people with great coaches is their goal. You may contact Bill at
800-887-7214, 239-415-1777, coaches@findyourcoach.com, or www.findyourcoach.com