Richard L. Osborne

The essence of entrepreneurial success

Reviews the essential elements of entrepreneurial success in large and small, existing or newly‐created companies. Examines the links between the firm and its environment, strategy and risk taking. Identifies the essential elements and argues that satisfying customer needs is the cornerstone of success.

The dark side of the entrepreneur

Abstract The prerogatives that derive from majority ownership in the privately-held company often lead to the misuse of power and missed opportunity. Drawing from hundreds of case experiences, the author and two dozen public accountants and lawyers who specialize in owner-managed businesses conclude that the entrepreneurs skill in managing power is a core factor separating those who succeed from those who do not. Advice on how to avoid the destructive tendencies of ownership power comes from a surprising source—Niccolo Machiavelli. Building on his insights, the author proposes three actions that can build a winning system of private company governance and increase the entrepreneur-owners power to create stakeholder value.

Second‐Generation Entrepreneurs: Passing the Baton in the Privately Held Company

The succession of second‐generation entrepreneurs to control of the family business created by their fathers is a challenging, often unsatisfactory process. A study of ten entrepreneurial families who have experienced succession discovered that the preparation of sons and daughters to take over the family business was disorganised, inadequate, and sometimes inept. Moreover, founder‐fathers and non‐family employees had done little to prepare for the transition to second‐generation leadership. Based on the troubling experience of these ten families and the author′s work with dozens of family businesses, this article proposes a comprehensive developmental model designed to increase the chances of second‐generation success.

High‐performance companies: the distinguishing profile

Maintains that high performance companies have an unmistakable profile that separates them from also‐rans, including distinctive characteristics of the corporate culture, the people and the management systems. Isolates seven attributes that differentiate the culture of high‐performing companies, lists staff, behaviours that set them apart, and describes three uncompromising principles upon which the management system is founded.

Core value statements: The corporate compass

Getting fundamental values on paper can help steer a company in the direction of higher profitability. I n the privately held company, the organizational culture is determined largely by the owner s attitudes. Yet in our work with dozens of ownermanaged businesses, we have observed that the entrepreneurs values are sometimes vaguely articulated, seldom published, and often ambiguously communicated. The result is that employees are left to an intuitive reading of organizational values. The pattern is different in publicly held companies. In recent years, many such public companies have created statements of their core values to regulate and drive their businesses. These core value statements are displayed in annual reports, communications to suppliers and customers, and, of course, internal policy manuals. In some instances these statements are inspired by the wellpublicized consequences of corporate and employee misconduct. More frequently, companies form core values as a mechanism to create a foundation of attitudes and practices that will lead to the enhanced long-term success of the firm. The process of developing and implementing core value statements can also increase performance levels of employees in the privately held company, including the entrepreneur s own capacity to lead. A core value statement functions like a corporate compass, providing reference points for shaping and building the owner-managed business. We contend that privately held firms should go public with their beliefs, standards of practice, and values. Contacts with 100 privately held companies, however, found only two that had articulated and communicated statements of their core values. To assist firms in developing and promulgating core value statements, we describe the ways in which some companies have benefited from such statements and suggest some factors for success.

Why Entrepreneurs Fail: How to Avoid the Traps

Would‐be entrepreneurs who start or acquire businesses, driven by the popular belief that executive competence can conquer all, are likely to be disappointed. Executive competence, while important, is often subordinate to the concept and capital utilization characteristics of the business in determining organizational outcomes. Proposes five guidelines for starting or acquiring a business which, if observed, will increase the chances of entrepreneurial success and corresponding wealth accumulation.

Planning: The entrepreneurial ego at work

Abstract The ego gives direction to personal behavior. The entrepreneurial ego gives purpose, direction, and control to the organization. The author outlines three action steps to engage the entrepreneurial ego through planning.

Business schools must become learning organizations – or else

Using the analogy of expensive trains heading for a crash, asserts that business schools must learn to do what they teach – i.e. become learning organizations – if they are to stay relevant in a rapidly changing world. Offers advice to schools on how to change, describing learning competences which must be acquired, and illustrates this by using the Weatherhead School of Management′s approach to executive learning.

When Private Companies Go Public

Entrepreneurs appear to become better managers of their businesses once those businesses go public: this means more attention to systematic planning, more reliance on other senior managers and directors, less secretiveness and longer time horizons. Isolates characteristics of growing firms compared to “stalled” firms and suggests ways for private companies to gain benefits like those public flotation would provide. Suggestions are designed to stimulate the positive influences of going public without disposal of privately held shares.