7 Key Steps to Build Business Performance by Developing an Entrepreneurial Mindset
Innovation: Defined simply as a “new idea” device or method. Innovation in its simplest form within an organisation is iterating on a process to improve the quality of the output.
From the work we have been doing with larger organisations, we have learnt a number of different things about harnessing an entrepreneurial mindset to build business performance, one strand of performance being innovation. One of the many pain points of larger organisations is staying relevant in an ever changing market and staying in touch with a constantly evolving customer. Innovation is essential to make sure these pain points are being addressed.
When innovation works, there are key building blocks in place which are embedded in the organisation. We have broken this down to show how you could get to grips with building an entrepreneurial culture and lead your organisation towards a relevant and differentiated future.
At the heart of everything must be the Purpose, Visions and Values of the company. If you aren’t adhering to these and checking the compass for the direction frequently, then you may end up in a place that the whole organisation isn’t bought in to. The compass therefore must be the Purpose, Vision and Values of the company. Each step you take must lead you nearer to the eventual Vision and hold the values dear in every step.
No.1: The first building block and the initial stage in building an entrepreneurial culture is Mindset. Everything starts with a thought and an attitude. The whole company needs to be bought in to change. If there isn’t a shared attitude/mindset geared towards staying relevant and iterating on the current offering, then innovation will fall flat. The right approach must be adopted to think differently, be open to failure, learn from every step and most of all communicate this mindset across the organisation.
No.2: You have to take action. Its great to have the right mindset in the organisation or team, but you have to move the mindset to action. Entrepreneuring is a action word specifically registered by us at Entrepreneurial Spark. It is so important because giving the right mindset a platform to exhibit behaviour is key. The right mindset leads to the right behaviours – its these behaviours which are the action needed to drive the entrepreneurial culture forward. #GoDo
No.3: Creating the right environment for your project or business means that you are able to remove barriers which could stand in the way of performance. Within our accelerator hubs, we created a colourful vibrant co-working environment, which fostered collaboration from an open plan workspace. Entrepreneurs would be removed from the distraction of their home office (kitchen table) and in to a place that inspired people to take action because they could see others taking action around them. Removing your team from their day to day environment, getting out of the building (Steve Blank) and immersing them in an environment that breaths inspiration, creativity and thought will only help to galvanise innovation and lead to increased buisness performance.
No.4: Culture – accepting that being entrepreneurial is a rollercoaster of a ride and being able to ride both the highs and lows are crucial. There will be failure along the way, but you need to learn from it, there will be moments of joy that you will need to celebrate. This all fits in to the culture that is created whilst developing an entrepreneurial organisation. Culture is also exhibited through commonality of language and thought, how people approach tasks and receive feedback. Strongly linked to mindset, culture is king when it comes to being able to think and act differently. Culture is the set of behaviours exhibited when the collective mindset is entrepreneurial. Once entrepreneuring becomes “the way we do things round here”, you have a strong chance at making innovation stick and for business performance to rocket!
No.5: Creativity is inspired by the environment, culture and mindset that is nurtured in the organisation. Contrary to popular belief creativity can be learnt! Creativity can be exhibited in many ways, it doesn’t have to just be a beautiful picture, it can be someone iterating on a process and thinking about a problem differently. Creativity is approached by different personalities in different ways, don’t ignore the quiet ones. The introverts are just as creative as the extroverts. Blue sky thinking and crazy ideas can come from creativity, but its the refinement of the crazy ideas that could just deliver performance in process or business. The environment that you immerse your team in can either inspire creativity or stifle it, creativity doesn’t just happen on its own!
No.6: Innovation doesn’t have to be the traditional “invention” of a new product or service. When the team are creative and are nurtured in the right environment, then new ways of doing things will emerge. It could be a simple process efficiency, or it could be the next big string the to the company bow. Either way, when you have the building blocks before innovation, you give the team every chance of coming up with something special. Innovation is crucial for keeping you and your team relevant in the face of an ever changing market. When you breed innovation then you increase the gap between you and competitors, constant iteration underpins the chances of future success.
No.7: If every step before it has a secure and solid foundation, then business performance will follow. When we talk about business performance this could mean a number of things. It may be that you are able to attract and retain the right talent because you have a clear differential to your hiring competitors. Business performance may also mean the traditional bottom line, If you streamline a process (innovation) and make something more efficient, then you have a good chance at increasing profitability. Business performance is about measuring something and delivering results. Only when you measure the results can you inform the next move. It is this information on business performance, which leads us right back to the right mindset in which to carry out the next iteration and next exciting move forward.
In conclusion the seven step model to build great business performance is a great tool to allow you to focus on areas of entrepreneurial development. It all starts with the right mindset, if you don’t have the right mindset then you will not have the right action to follow. We have learnt so much about the mindset of entrepreneurial leaders that could help larger organisations to stay relevant and iterate in the future and as part of the Mindset Revolution, we want to share this knowledge. If you feel you or your company could benefit from this entrepreneurial mindset. Then get in touch with us today!