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The Entrepreneur's Dilemma: Micro or Macro-managing? Power & control vs Delegation?

The problem sits in not being fully capable to separate the role of the entrepreneur from that of the manager also called The entrepreneur dilemma.

The quadrant could be an IDEAL situation, but only if it can be well aligned with the Start-up’s stages

The typical and accepted stages of the journey of a start-up move from the beginning toward the IPO as shown in the diagram below:

Why and how Power and Control can be a risk?

A. Entrepreneur+ Micro-managing (hands-on)

A creator, with a technical, tech, sales research background can be hands-on in the stages of market revisitation (1) and concept for product/service(2).

Original ideas-projects need to find the market size and opportunity, following carefully original feelings with a potential match with customers and market.

Your duty as a leader is to make possible that “early employees feel that they belong to a special club” ( HBR).

B. Entrepreneur+ Micro-managing 70%+ Delegation 30%

Stage 3 Minimum viable product. (MVP) still requires the creator of the company, with your direct intervention of course.

However, you need help to test and find the minimal acceptable solution. Delegation is for technical, tech, sales/marketing. But don’t worry you are still there to shape and define the idea while you are verifying its market-customer fit.

C. Manager & delegation 80% Micromanaging 20%

Launching a product (4) requires more resources. it is important to keep in consideration David Miller’s thoughts: “Everyone should be selling; everyone should be preparing for the release.”

The Micromanaging here is to resolve by exception, something potentially risky and review the to-do list before proceeding.

D. Manager & delegation 100%

Strategic thinking, strategy development and implementation require a manager to complete the organization structure firstly to coordinate, motivate a disruptive transformation required to Scaleup (5).

You need to use both the “push” model of leadership with a “pull” approach (empower, collaborate, coach)

(5) Consolidating market position, and further, sustain the growth towards (6) IPO

Management and leadership are involved in aligning the culture with beliefs, values and behaviours of human resources. This makes the difference to reach success.

Why and how Power & Control can be a risk? (2)

In the likely hypothesis, you are looking for funds, Business angels, Venture Capital, Family business, are looking at the Team and culture in perspective and if you don't have resolved your dilemma you will be in trouble.

Now, ask yourself these questions:

Are you aligned with Management & leadership styles and Stages?

How investors would evaluate the relations Management-Leadership-Culture of your company?


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