Lifeclycle of an entrepreneurial company

Do you ever wonder what makes a growing technology company succeed? You may have the best game on the market, but without an entrepreneurial culture, your company may lose its uniqueness and at worst, may go out of business.That's why so many tech start-ups don't make it to their 10-year anniversary. Legendary Apple CEO Steve Jobs had an entrepreneurial spirit, but it took him leaving and then returning to Apple to regain it.

Life cycle of an Entrepreneurial Company

Birth. Many companies begin their lifespan with a strong entrepreneurial culture. The organization is led by the vision and values of the initial team members involved in organizing the company.

Adolescence. This is a critical phase where new directions and processes are typically introduced. Rules and boundaries are established throughout the company based on the leaders' trial-and-error experiences. As the organization grows, expert leaders are brought in to assist in the company's growth - experts who may not have the same vision and values of the company founders. During this phase, the company culture becomes more corporate and mature.

Adulthood. Experts are pushed into leadership roles without the necessary training and development to motivate and inspire through the company's vision. Outside leaders are recruited who may not understand the industry or the existing culture. New leaders begin establishing standardization throughout the organization using cumbersome forms and templates or unnecessary policies and procedures. Ineffective leaders are unaware that too much standardization and micromanagement can chase away the entrepreneurial spirit.

How to Develop an Effective Leader

• Effective leaders are the key to maintaining a culture driven by the entrepreneurial spirit. It can be challenging to develop effective leaders that embrace the vision of the company, so how can you cultivate your functional experts to become more effective leaders?

• Establish Clear Vision and Expectations. The vision of your company is the cornerstone for all other goals, policies, strategies, and actions. The vision should be clear enough so that it can be easily woven through all other company goals.

• Teach Leaders to Create the Vision. Coaching your leaders to uphold your company's vision is the most effective way to keep the entrepreneurial spirit alive. It's more than just teaching the vision -- the words have to align with the behavior and culture. An effective leader will be relentless when it comes to ensuring that the vision pervades all aspects of the company's culture and behavior.