...the decision to search for opportunities is an enterprising decision requiring entrepreneurial intuition and imagination and must precede the ' economic ' decision to go ahead with the examination of opportunities for expansion.
Edith Penrose The Theory of the Growth of the Firm
Penrose was a pioneer economist in the resource-based view of a firm.
A view focused on a firm gaining competitive advantage by organizing around its internal resources.
She emphasized the importance of intuitive decision-making preceding the analytical economic decision in seeking opportunities. A topic I addressed a couple of weeks ago.
Such entrepreneurial leadership and decision-making can be challenging for established firms.
Their organizational culture can be highly rules based, overly process oriented or dominated by a particular leader.
All which can stifle entrepreneurial leadership and growth.
An organizational culture that fosters "entrepreneurial intuition and imagination" can help create what I call a mindful organizational system. The opposite: a minefield organizational system.
Minefield organizational system:
Your organization is avoiding a critical truth.Your value chain is disconnected from a changing marketplace.A disruptive technology has displaced your product or service.Your organizational culture is obsolete and no longer sustainable.Your business model is upside down or inside out.Your leadership team is not seeing the forest through the trees.Your enterprise has become all about the transaction and forgotten its purpose.
Mindful organizational system:
Moments of critical truth are embraced as opportunities for growth and change.An emergent organization engages, learns and moves in sync with the marketplace.A responsive not reactive organization.Culture matters and adapts.An iterative business model and system.Leaders are systems thinkers.Purpose generates profits.Moving from a minefield to a mindful organization is challenging.
But the growth, and sometimes survival, of a firm often depends on it