Dollinger index

342 ENTREPRENEURSHIP

The members are individually, as opposed to collectively, accountable. They do not real-

ly work together; they simply work for the same organization at about the same level in

the hierarchy.

In contrast, a team is connected by the joint products of its work. Members of a team

produce things together and are jointly accountable for their combined work. In the case

of the TMT of a new venture, their joint output consists of the enterprise’s managerial

systems and processes. Team members value listening and constructive feedback, and

they encourage each other in a supportive spirit. The whole of a team is greater than the

sum of its parts. Why? Because the venture benefits both from the individual efforts and

from the relationships. In fact, these relationships often transcend and overshadow indi-

vidual contributions. People working on effective teams are sparked, motivated, and

inspired by their interactions with the other team members.

The process of TMT formation should begin with an evaluation of the talents, ex-

perience, and personal characteristics required in the new venture’s operating environ-

ment. This evaluation gives the entrepreneur a map of the ideal team. This map helps

guide the process of putting the TMT together and of answering the three fundamental

TMT recruitment questions: From what sources will TMT members be recruited? What

criteria for selection will be used? What inducements will be offered to potential mem-

bers?^11

Sources of TMT Members. TMT members are recruited both from people whom the

entrepreneur already knows and from “unfamiliars.” Familiars include family, friends,

and current and former business associates. The advantages of choosing familiars are the

established trustworthy personal relationships, the entrepreneur’s knowledge of each

person’s capabilities, and the fact that the entrepreneur may already have an established

working relationship with them. This prior knowledge and experience can speed up

team formation and decision making in the early stages of new venture creation.

Personal Leader

Leading team members

• Motivating behavior


• Providing guidance


• Being a model


• Setting standards
  of conduct

Architect of

Organizational Purpose

• Intiuencing goals
  and objectives


• Directing the business
  strategy


• Scanning the environment
  for opportunity

Roles of the Entrepreneur

Organizational Leader

• Choosing the TMT


• Blending team skills
  and expertise


• Maintaining high levels
  of productivity

SOURCE: Adapted from K. Andrews, The Concept of Corporate Strategy (Upper Saddle River, NJ: Prentice-Hall, 1986).

FIGURE 9.1 Roles of the Entrepreneur as General Manager

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