Inside Strategic Coach: Bureaucracies vs. Entrepreneurial Companies

Key Idea

• Bureaucracies = Systems of Control
• Entrepreneurial Companies = Networks of Cooperation

Bureaucracies

• Purpose: Designed for control; necessary in certain situations
  • Example: Military – hierarchical structure, predictable tasks
  • Example: Big Industries (1950s) – steel production, automotive industries
• Characteristics:
  • Long-term, stable jobs with little change
  • Resistant to rapid changes and new opportunities
  • Suitable for predictable, programmable tasks
• Risk: High susceptibility to automation replacing human roles
• Suitability: Government services (e.g., electricity, water, police, fire) where change is minimal

Entrepreneurial Companies

• Core Principle: Start with a single individual with unique skills
• Growth Strategy: Begin by performing all roles then delegate backstage tasks
  • Example: Strategic Coach – From 1-on-1 coaching to international team
• Characteristics:
  • Focus on creating new value, innovation
  • Form teams where each person has unique abilities
  • Network of cooperation to rapidly adapt to changes
• Environment: Continuously changing due to market, technology, and economic shifts
• Culture: Innovation, resourcefulness, responsiveness

Control vs. Cooperation in Entrepreneurial Companies

• Control-Oriented Entrepreneurs:
  • Struggle to attract and retain great talent
  • Likely to remain small-scale operations
  • Tend to restrict innovation and new ideas
• Cooperation-Oriented Entrepreneurs:
  • Attract and nurture talents who value freedom and innovation
  • More likely to grow and adapt
  • Cultivate a culture where team members thrive in their unique abilities

Leadership Mindset

• Encouraging Cooperation:
  • Leaders should promote opportunities for team members to do what they’re best at
  • Focus on expanding cooperation internally and externally
• Risk of Automation: Traditional control-oriented roles are at higher risk of being replaced by automated technologies

Implementing a Network of Cooperation

1. Leadership Actions:

• Ensure that 50% of activities each year are new
• Promote growth through cooperation rather than control

2. Building Collaborations:

• Partner with external networks (e.g., Abundance 360, Genius Network)
• Use collaborations to adapt and respond to market changes

3. Continuous Feedback and Innovation:

• Regular updates and new thinking tools every quarter
• Responsive to client needs and market shifts

Obstacles to Cooperation

• Established Industries: Tend to drift toward control due to mature, stable environments
• Control Mindset: Creates a barrier to noticing and adapting to innovation

Conclusion

• Choice for Leaders: Decide whether to cultivate a culture of cooperation or control.
• Long-term Viability: Networks of cooperation are more sustainable and responsive to change compared to systems of control.
• Case Study: Strategic Coach as a model of expanding networks of collaboration.