Wednesday, June 15, 2005

A Mediocre Management Team with a Great Strategy will ALWAYS out-perform a Great Management Team with a Mediocre Strategy

Entrepreneur and venture capitalist Chris Mayaud writes in a post entitled "MYTH: Great Management is King" that it is great strategy rather than merely great management that is the key to success:
A Mediocre Management Team with a Great Strategy will ALWAYS out-perform a Great Management Team with a Mediocre Strategy.
He also tells us that:
A competent move in the wrong direction destroys a company much faster than an incompetent move in the right direction.
His Rule #1 is:
Behind EVERY Successful Company lies an ACCURATE Market Hypothesis
In other words, understand what the market wants, how much demand there really is, and how you are really going to satisfy that demand in a profitable, and sustainable manner.
 

4 Comments:

At 8:44 PM EDT , Blogger Josh Kerbel said...

If a mediocre management team puts together and executes (I repeat, executes) a great strategy, doesnt that make them a great management team?

 
At 8:16 PM EDT , Blogger Jack Krupansky said...

After the fact, yes, but the point is that at the time that you make the funding decision, you don't know the future outcome.

The term "mediocre management team" as a bit vague. The point is not that you would trust a bunch of bumblers with bad track records to perform a miracle, but that a new, unproven team whose members may have performed less than optimally on their prior teams or not have any experince at all might be brought together for the new venture and do quite well.

Bill Gates and Paul Allen didn't have a great management track record behind them.

Ditto for the guys starting Yahoo and Google.

Jeff Bezos was a brilliant technical guy, but had no great retailing track record before he started Amazon.

-- Jack Krupansky

 
At 4:47 AM EDT , Blogger Klas K. said...

I agree.

I believe starting a new business is very much about getting the "ball rolling", taking it step by step.

I am a firm believer in emerging strategies as opposed to "strategic planning".

And then there is timing and luck :)

 
At 1:18 PM EDT , Blogger Josh Kerbel said...

Ah, I see said the blind man!

 

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