Thursday, April 12, 2012

Entrepreneurial gap - the secret of high performance organizations

In the last blog we looked at the way one could adjust the various spans of control to be wide or narrow. In today's blog we look at a desired state in a lot of large organization - having an entrepreneurial team by the way the job is designed. 

If someone is to create the entrepreneurial job - it has to create a situation where the resources are not sufficient to meet the goals that are set. This is not in alignment with the adage that - authority should match responsibility. In high-performing organization, employees are held responsible for broader goals with very limited resources they possess - this leads to a gap called the "entrepreneurial gap". The employees in such situations would have to use their creativity to succeed without the direct control of the resources they have control over.

The same could be explained with the diagram below.

Source: Fig - Creating the Entrepreneurial Gap, Desining High-Performance Jobs - by Robert Simons

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