Strong companies stay in the market thanks to constant evolution and thoughtful adaptation of their strategy to changing trends. Even companies established in the 21st century can become obsolete if they do not keep up with the times and introduce innovative solutions. This also applies to entities with an already established position. If they do not seek new means to move forward, their growth will eventually slow down. This is because the actions that made them successful a few years ago are probably no longer effective today. How can this situation be avoided? The key to success is the appropriate division of roles in the most important positions.
Why does a company need to change its business model?
The need to change a strategy does not mean that it is bad. It is worth remembering that it is thanks to this strategy that well-established companies have found themselves where they are today. Their success to date means that they have discovered the optimal business model and have effectively improved it. However, in the 21st century, this is not enough to achieve satisfactory and sustainable growth. The options for maintaining good results are either to launch a competitive offer on the market or to create a new, innovative business model. It is almost certain that the current model is not capable of guaranteeing further growth at a satisfactory level.
The rapid pace of economic development requires the search for new opportunities for growth. The optimal model is an efficient combination of exploitation and exploration. This is nothing more than the maximum use of the company’s existing tangible and intangible resources (exploitation) while simultaneously and intensively searching for innovative tools for further market expansion (exploration). This means a simultaneous focus on optimisation and innovation, strategic and operational management, and short- and long-term development. To make this possible, a company needs a director who takes care of the company’s current affairs (CEO) and a director who focuses on the company’s future (CE).
Who in the company should be responsible for innovation?
The position of Chief Entrepreneur, or CE, is invaluable in companies whose ambition is to continue to grow and meet the expectations of today’s market. According to experts such as Alexander Osterwalder, an entrepreneur considered a business visionary, it is the CE who should be responsible for shaping the future of the company. While the CEO, or chief executive officer, is responsible for development activities that are now considered an outdated business model, the CE should work on implementing innovative solutions and proposing radical changes.
Osterwalder and his colleagues, experts in strategy, innovation and entrepreneurship: Rita McGrath, Steve Blank, Henry Chesbrough and Yves Pigneur, all agree that every chief executive officer needs the support of a CE who will oversee innovation, create processes and mobilise change. It is the CE who is responsible for steering the search for new areas of development and stimulating the company to explore new opportunities, even when it is successful. At today’s pace of change, standing still for even a moment can have disastrous consequences.
Why does your company need a Chief Entrepreneur?
As already mentioned, the tasks performed by the CEO are still necessary, but they do not meet all the expectations of the modern market. The CE is responsible for the future of the company. Based on their experience and in-depth analysis of the market and competition, the CE and their team develop completely new business models. After exploring many options, they verify individual possibilities and select those that offer the greatest chance of success. The team led by the CE also tracks market trends and behaviours, looking for those that can be applied or effectively modified and adapted to the company’s needs. It also takes risks with business experiments and develops methods for estimating the progress achieved thanks to new solutions. While the CEO focuses on the here and now, the CE secures the company’s long-term future.
What distinguishes a good CE?
The CE is independent of the CEO. Their roles are equally important and they should complement each other perfectly, but at the same time have different approaches to the company. Building the future of the company, the Chief Entrepreneur must not only know the business, but also be genuinely passionate about it. Their knowledge and skills are fundamental, but without commitment and passion for their work, they will not be able to achieve the expected results. However, it cannot be denied that experience is of great importance. The most sought-after CEs have already built million-pound businesses from scratch in their careers!
A valuable CE should also display certain qualities that will give the company a better chance of success. First and foremost, they are required to have:
- diplomatic skills that allow them to present their visions and plans in a way that will be accepted by sceptics,
- belief that anything is possible and that all obstacles will be overcome,
- openness to suggestions and new solutions,
- courage and determination in taking calculated risks,
- innate charisma that allows them to assemble a team of specialists who will take care of exploration,
- enthusiasm for work and the challenges you set for yourself,
- diligence, which is fundamental in any high position!
How to focus a company on innovation?
- The basic step to increase the emphasis on innovation is the aforementioned change in the company’s organisational structure. Exploitation coexisting with exploration is a necessity in a modern company that wants to grow.
- The Chief Entrepreneur and Chief Executive Officer should exercise equal authority, but focus on completely different matters. While the CEO will be preoccupied with current affairs, the CE should look far into the future of the company.
- The CE should not only manage the team responsible for developing new solutions for the company’s growth and the portfolio of experiments, but also foster a culture of innovation.
- The focus should not be so much on incremental innovations that sustain the company’s current condition, but on transformational innovations that allow it to explore new horizons and potentially disruptive business models.
- The new technologies offered should be combined with an attractive value proposition and a well-developed business model.
Source: https://hbr.org/2015/06/the-c-suite-needs-a-chief-entrepreneur
Source: https://www.strategyzer.com/blog/posts/2015/6/29/the-c-suite-needs-a-chief-entrepreneur
