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Creating the Organization

Good fences make good neighbors.

—Robert Frost

OUTLINE

LEARNING OBJECTIVES

After reading this chapter, you will understand

• some issues involved in creating and maintaining a top management team (TMT).


• the composition and responsibilities of a board of directors.


• the concept of a virtual organization.


• the importance of networks and alliances.


• the principles of Built to Lastventures.


• how different strategies create different organizational structures.


• some ethical issues facing entrepreneurs.


• the balanced scorecard approach to venture performance.


• some successful strategies from the entrepreneurial workplace.

CHAPTER

9

The Top Management Team
Creating the Top Management Team
Maintaining Top Management Teams
Benefits and Pitfalls of TMTs
The Board of Directors
Guidelines for Successful Boards
Building an Enduring Organization
The Venture’s Vision
Recommendations for Entrepreneurs
and Founders
The Organization’s Boundaries
The Virtual Organization
The Incubator Organization
Networking and Alliances
Benefits and Motivations for
Networking
Types of Networks
Partner Selection Criteria
Processes of Reciprocity
Traditional Organizational Structure
Stage One: Simple Structure
Stage Two: Departmentalization
Stage Three: Divisional Structure
Stage Four: Multidivisional Structure

Stage Five: The Conglomerate

Entrepreneurial Performance: The Balanced

Scorecard

The Customer Dimension

The Internal Business Dimension

The Innovation and Learning

Dimension

The Financial Performance

Dimension

The Entrepreneurial Workplace

The Entrepreneurial Culture

Entrepreneurial Ethics

Most Successful Human Resource Practices

Best Compensation Practices

Best Training Practices

Best Job Autonomy

Best Career Advancement

Best Quality of Life

Summary