348 ENTREPRENEURSHIP
Communications. Highly developed interpersonal and communication skills are es-
sential to the success of the TMT. Communications have three types of content: task,
process, and self-serving. Task-oriented communication directly addresses the subject
under discussion. Its purpose is to provide substantive information to help the group
make a decision. Process-oriented communication is concerned with how the group
operates and how people behave. It is reflective and attempts to make the group mem-
bers aware of what is happening in the discussion. Both task and process communica-
tions are necessary for effective decision making. Self-serving communication con-
tributes neither to task nor to process. It tries instead to put the speaker at the center of
the discussion. The content of self-serving communication varies, but it frequently
attempts to take credit, assess blame, or accuse another team member of violating the
group’s norms for behavior.
Effective communicators concentrate on task and process communication and mini-
mize self-serving communications.Leadership. The founding entrepreneur is both a member of the team and the team
leader. In effective teams, however, leadership is often shared, depending on the prob-
lem at hand. If a particular individual possesses superior knowledge, experience, skill, or
insight, that person takes the temporary leadership of the group.Benefits and Pitfalls of TMTs
Creating a top management team for a new venture offers the benefits of team decision
making—^29 breadth of knowledge, diversity, acceptance of decisions, and legitimacy.^30
The team approach to top management balances skills and attracts vital human resources
to the emerging organization. It is also a test of the venture’s viability: If no one will join
the team, there is serious room for doubt about the venture’s potential for market
acceptance. A well-developed team will minimize the disruption caused by the loss of
any single member, saving the time and energy needed for later recruitment. Such a team
also demonstrates to external stakeholders that the founder is a “people person” willing
to share authority and responsibility.^31
However, the team approach to top management is not without potential problems
and pitfalls. One researcher notes several possible difficulties. For example,- TMT members may lack start-up experience.
- They may be recruited too quickly, without careful attention to their long-term
commitment. - The team may be too democratic. Members may feel that they should all vote on
everything instead of deferring to the person with the most expertise. - In an effort to recruit, the entrepreneur may exaggerate the level of decision-mak-
ing discretion the team will have. The realization of such exaggeration is bound to
disappoint and de-motivate team members when they learn that the new venture is
wholly controlled by the founder and majority stockholders. - The TMT may make decisions too rapidly in the mistaken belief that everything
must be settled on Day One.32i