Friday, June 24, 2011

Technician, Manager, or Entrepreneur?

Michael Gerber stated in The E-Myth Revisited that most entrepreneurs are technicians having a spasm of entrepreneurship.

Perhaps I can illustrate his meaning. Kay, an award-winning graphic designer, decided to open his own business. As a graphic designer, he decided that he was not making any money unless he was drawing or designing. That goal belongs to a "graphic design technician". Unfortunately, Kay did not see the "accounting manager" role of sending bills and ensuring they were paid. As a result, Kay would not receive money for many of his projects because he either did not send all the invoices or collect on accounts receivable. Why? Because he followed the technician role and not the management role.

SUCCESSFUL BUSINESSES REQUIRE 3 SIGNIFICANT ROLES:
The technician creates the product or service. They are the producers. Without a technician, clients do not receive products or services. They view distractions, like billing or planning, counter to productivity. Technicians live in the "now".

The manager monitors what the business already provided. They are the organizers. Managers create reports to evaluate how much product or service the business provided. They ensure that the business processes accounts payable and receivable. They order supplies to ensure that the business creates enough product or service. Managers live in the "the past".

The entrepreneur envisions the next big improvement. They are the dreamers. Status quo never satisfies the entrepreneur. They see modifications, improvements, and new horizons essential for survival. The past and present bore the entrepreneur. The entrepreneur lives in the "the future".

The three roles tend to irritate each other. Technicians view the manager's reports as non-productive busy-work. Managers view the technicians failure to appreciate the need for organization and reporting as unprofessional. The entrepreneur irritates both of them with their constant changes and pie-in-the-sky dreams.

The challenge for one-person businesses occurs when all three roles must dwell in just one person. One person must live in "the now", "the past", and "the future". That one person irritates themselves with distracting reports, constant constant changes, and inadequate delivery.

Successful business owners either
  • Reconcile all three roles, balancing them adequately to keep the company going.
  • Find someone else to fulfill the roles that do not excite them (possibly hiring, outsourcing, or partnering)
  • Let the business suffer or fail due to lack of effort in one or two roles
You can learn more about this in the E-Myth, Consulting News, Sources of Light, and other sources.

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