MGMT 554 Essential Skills in New Venture Management

1. MGMT 554Essential Skills in New Venture Management Week 3 Dr. Young

2. MGMT 554Essential Skills in NVM • Disposition – relatively stable habits, characteristics and tendencies • Personality • Needs for achievement, power • Habits, etc. • Cognitive – intellectual skills • Memory • Reasoning • Comprehension, etc.

3. MGMT 554Essential Skills in NVM • How would you describe the entrepreneurial profile of Albert Black? What characteristics helped or hindered his success in your opinion? • What relationships do you see between Black’s profile and the way he does business?

4. MGMT 554Essential Skills in NVM • Panel Study of Entrepreneurial Dynamics • PSED study examined • Who starts businesses • How do they go about new startups • Which startups result in new firms • Keys to success • 830 entrepreneurs • Current expectations of entrepreneurs • Startups not just realized firms

5. MGMT 554Essential Skills in NVM • Which findings are surprising?

6. MGMT 554Essential Skills in NVM • “Individuals who take action are more successful than those who don’t, even if those actions are not necessarily the best or the right actions.” - Gartner and Bellamy What conclusions can be drawn from this?

7. MGMT 554Essential Skills in NVM • Attribution theory – human beings seek reasons to explain circumstances: • Internal cause/external cause • Stable situation/variable situation • Global cause/specific cause • What recent occurrence can you use to apply attribution theory? • Relate attribution theory to entrepreneurship.

8. MGMT 554Essential Skills in NVM • What ethical issues does the “Enterprising Ethics” case represent? • What is Kazaa’s (or any entrepreneur’s) responsibility when it comes to use of products or services?

9. MGMT 554Essential Skills in NVM • “You cannot consistently perform in a manner which is inconsistent with the way you see yourself.” • Zig Ziglar quoted by Gartner & Bellamy • Change your mind, change your behavior, or change your goals…

10. MGMT 554Essential Skills in NVM • Chapters 2 and 12 and departure points for step 1 of your journal work… • Summarizing and comparing your goals, values, characteristics, etc. can help you to reflect upon what’s important to you and how you want to spend your entrepreneurial energy.

11. MGMT 554Essential Skills in NVM • Self Assessment Part 1 • A) Learning Self-efficacy • Confidence in taking on new challenges • Obvious connections between enterprising activities and learning confidence • Also correlated with belief in self and ability to achieve

12. MGMT 554Essential Skills in NVM • B) Mentoring Importance • Finding mentors or people who can help you is important in new ventures. • There is a difference between mentoring and networking or mentoring and getting advice. • Mentoring: • Career and social support, long-term, relationship • Advice can be from anyone, one time or repeated • Networking is becoming familiar with many people who can help you but you may not necessarily develop a long-term or close personal relationship.

13. MGMT 554Essential Skills in NVM • C) Teamwork Self-efficacy • PSED notes most startups begin with 1.8 people, on average. • Some new ventures require teams and working with others. This assessment deals with peer teams, not just working with others at different levels. • Not all businesses require teams, the important point is to know what you like and are good at.

14. MGMT 554Essential Skills in NVM • D) Creative Confidence • Creative confidence is a type of self-efficacy but it is related to creativity. This is not an assessment of how creative you are, it is an assessment of how confident you feel in your own creativity. • Everyone is creative and creativity is defined in very different ways. • Kirton (1976) defined creativity as comprised to two types of behaviors: • Innovator – seeks innovation – new ideas, linking seemingly unrelated concepts • Adaptor – developing and improving existing processes, etc.

15. MGMT 554Essential Skills in NVM • E) Creativity • Creativity is difficult to measure and is often associated with risk. That is not necessarily true, it’s just the best analogy researchers had at the time. • Risk is often associated with entrepreneurs too, but that’s incorrect. Most entrepreneurs manage risk and can deal with risk, but that does not mean they seek risk as in gambling and taking unnecessary chances.

16. MGMT 554Essential Skills in NVM • F) Career Search Self-efficacy • Career search self-efficacy identifies the confidence you perceive you have in developing your career and how much effort you put into known career building activities such as networking. • It can give you an indication of where you need to develop skill and which skills you can use to your greatest advantage.

17. MGMT 554Essential Skills in NVM • G) Personal Exploration • This scale is a sub-set of career development efficacy and identifies your confidence in personal exploration and awareness of personal development and using your values and capabilities.

18. MGMT 554Essential Skills in NVM • H) Big-Five Personality Factors • A personality measure, the Big Five identifies five personality traits: Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness to New Experiences. • Only Conscientiousness and Agreeableness have been correlated with job performance. (I suppose that is why we don’t see job ads for cranky, inefficient people.) • There is much debate over personality and its strength in predicting behavior (see Barrick & Mount, 2007). In fact, in situations in which situational forces are strong, personality becomes a weaker predictor.

19. MGMT 554Essential Skills in NVM • I) Networking Ability • The ability to network is important and less uncomfortable if you believe in what you are networking for. • This assessment and the following three are all a part of one measure of awareness of organizational politics. This first is this component: networking ability.

20. MGMT 554Essential Skills in NVM • J) Apparent Sincerity • Sincerity, or apparent sincerity is often linked to passion, enthusiasm, and commitment. • Investors look for passion and enthusiasm as many investors believe this is a critical component of success.

21. MGMT 554Essential Skills in NVM • K) Social Astuteness • Being a successful communicator requires sensitivity to others and the situation • Investors require this as they know it may translate to customers, other investors, employees, and other important stakeholders.

22. MGMT 554Essential Skills in NVM • L) Interpersonal Influence • This is probably very highly correlated with Agreeableness in the Big Five Personality Inventory and many aspects of EI. • In a new venture, you must convince everyone that you know what you are doing in terms of building the business and making it a success.

23. MGMT 554Essential Skills in NVM • M) Emotional Intelligence – perception and appraisal of emotions • Knowing self is important in dealing with others and controlling your behaviors as well as managing the impressions of others and managing stress. • Some say personality can’t be taught but emotional intelligence can be. That gives teachers and researchers, and you, more to work with in terms of self-development.

24. MGMT 554Essential Skills in NVM • N) Emotional Intelligence – Facilitating thinking with emotions • The facilitating thinking with emotions scale assesses the extent to which you honor the feelings and attitudes of yourself and others. • In negotiating, convincing others, appealing to others for support, successfully assessing and dealing with emotions is important to success.

25. MGMT 554Essential Skills in NVM • O) Emotional Intelligence – Understanding emotions • Dealing effectively with your own emotions and others feelings can help you to navigate otherwise conflict-ridden situations. • Often once emotions take hold, rationality is lost and difficult to recover. • However ignoring emotions is rarely the answer to deflecting potential conflicts. • It’s best to develop awareness and manage self in order to deal effectively with others.

26. MGMT 554Essential Skills in NVM • P) Emotional Intelligence – Regulation and management of emotion • What we really do and what people think we do are often two different things. • This scale assesses your own perception of your ability to deal with others’ emotions. • It’s a place to start in comparing your perceptions with feedback you have received from others.

27. MGMT 554Essential Skills in NVM • Q) Self-worth – value of self • Again, our perceptions are our reality. • Accuracy of self-definition increases awareness and ultimately setting goals that will give you a sense of fulfillment. • Reflecting on influences and then deciding the extent to which we accept that influence is important.

28. MGMT 554Essential Skills in NVM • R) Values • Slightly different from self-worth, values indicate what drives us to act. • Knowing what drives us can help us to be realistic when setting goals and devising business ideas. • Identify your core (most important) values and begin the cognitive process of purposely deciding what is good for you and for your life.

29. MGMT 554Essential Skills in NVM • S) What you want from… • This exercise is meant to get you to think carefully about your expectations of others and things around you. • Clearly knowing this can help you to regulate emotions and deal with conflicts in a healthy and realistic way.

30. MGMT 554Essential Skills in NVM • T) Your personal mantra… • Short, active, descriptive phrase that denotes quickly what you want from your life and what you want to do… • See Kawasaki for an expanded definition and examples of business mantras. Can you translate this idea into a personal mantra?

31. MGMT 554Essential Skills in NVM • In Part 1, we discussed personal values. Now we turn to specific aspects of entrepreneurship in part 2, U): MONEY • Spend my own savings • Go into debt • Invest business earnings back into the business • Invest business earnings back into the business even if it changes my lifestyle

32. MGMT 554Essential Skills in NVM FRIENDS/FAMILY • Put off having a family • Spending less time with family • Spending less time with friends RELOCATION • Move to a better location

33. MGMT 554Essential Skills in NVM DEALING WITH OTHERS • Attend professional meetings or business groups to network with others • Involve others in developing my business idea • Allow investors to have a say in how the business is run • Answer to others who have put money or time into the business

34. MGMT 554Essential Skills in NVM -V) What are your pre-conceived notions about entrepreneurs and new venture development? W) Control, prestige, money, working with others, working alone…everyone wants something different. These questions deal with general feelings Y) So define what you want from yourself (honestly and realistically) and define what you want from others. Z) A personal SWOT analysis of sorts, this assessment will get you focused on your strengths and things internal and external to yourself that may impact your progress.

35. MGMT 554Essential Skills in NVM • Synthesize an analysis of self (characteristics, values) from part 2 with insights from part 2 and summarize what type(s) of businesses would fit you best, what you want from your business(es) and what you are working for…