Center Publication
A Conversation with Dr. Jana Matthews
ONLINE WITH THE EXPERTS
March is National Women’s History Month but we continue to celebrate it all year. This year’s national theme, “Women Inspiring Hope and Possibility,” honors the hope and sense of possibility that is found in the inspirational achievements of women.
Here at the Center for Women’s Business Research, we find great inspiration in the growth of women entrepreneurs. Today one in 11 adult women is an entrepreneur and one in seven workers are employed by a woman-owned firm.
We celebrate Women’s History Month by launching a series of monthly conversations with experts in entrepreneurship and leadership. We hope their insights, experiences and perspective will give women business owners the inspiration and tools to grow their business – and supporters of women’s entrepreneurship a better understanding of the world of entrepreneurial women.
Center for Women’s Business Research asked Dr. Matthews four questions:
- What are some of the trends you see in entrepreneurial leadership and business growth?
- What are some of the obstacles?
- What are some of the opportunities?
- What is your advice for women entrepreneurs?
| 1. | Center for Women’s Business Research: What are some of the trends you see in entrepreneurial leadership and business growth? Matthews: One trend is the shift from “value” to “growth”. For the past few years most companies have focused on cutting costs, delaying expenditures, laying off people and becoming more productive. We’ve finally turned the corner and business leaders are beginning to focus on growth again. A second trend is the number of women who are stepping off the corporate ladder and are choosing to start and grow their own companies. I was asked to lecture at Notre Dame on the topic, “Women Leading: Is It Different?” I have always focused my research on entrepreneurial leadership, per se. As I read, researched and prepared for this lecture, I came to the conclusion that the leadership roles and the responsibilities are the same – regardless of whether you are a man or woman. But there are big differences in the context in which women and men leaders operate. For example, only 1-2% of the CEOs of Fortune 500 companies are women. Women hold less than 10% of the senior positions in large corporations. This means that there are very few role models for other women. Women tend to be pigeon-holed into education, training, communications and support positions. Very few are in finance, strategy, or line positions. Few are given opportunities to start-up a new division or go in and turn-around a division that’s under performing. Most corporate cultures are competitive rather than collaborative – and on and on. The result is that an increasing number of smart and savvy women are getting tired of proving themselves without commensurate rewards, making less money than their male counterparts, and trying to change the cultures in which they work. So women are leaving corporations, starting companies and creating cultures in which they can succeed – and many of them are becoming quite successful. Return to Top |
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| 2. | Center for Women’s Business Research: What are some of the obstacles to growth? Matthews: One obstacle to growth is the CEO’s ability to lead a growth company. Anyone who starts a company has to be willing to do everything, make a lot of decisions and juggle a lot of balls. But when a company starts to grow, the leader has to assume new roles and responsibilities. It takes one set of skills to start a business, but another set to grow the business. The skills that make you successful during start-up - or turn-around - are different from the ones you need to grow your company. During start-up and turn-around, you need to limit risk, count pennies, “make do”, postpone expenditures, lay off people and cut out all “fat.” But in order to grow, you have to take risks, try new things, “bet on the come,” and know that some things you try will not be successful. Leaders who want their companies to grow must understand the relationship between innovation and growth. They have to think outside the box and be willing to “travel in unknown territory,” know how to manage risks, but be willing to take risks. They have to know how to learn from failure, as well as success. They also need to understand what changes will be required in their roles and responsibilities at different stages of company growth. During start-up they are the Do-er and Decision-maker. During Initial Growth they have to be the Delegator and Direction-Setter. In Rapid Growth they need to play the role of Coach, Team Builder, Planner and Communicator. In Continuous Growth they must move out of operations and become the Strategic Innovator, Change Catalyst, Organization Rebuilder, and Chief of Culture. You can read more about the stages of growth and the changing role of the leader in Leading at the Speed of Growth: Journey from Entrepreneur to CEO. Another obstacle to growth is the company itself, i.e., whether the company has the capacity and is ready to grow. The leader who wants to grow needs to ask three questions: Do I have a plan for growth? Is my company ready for growth? Am I ready for growth? You need to work with your top team to develop a plan for growth, get your employees committed to that plan, and then execute. You also need to do an organizational audit to determine if your company is ready for growth. Make sure you are structured for growth and have the right people in the right jobs to execute on the plan you are developing. For example, the people who performed well by cutting costs and “holding the line” may not be the ones who can innovate and take risks. The organizational audit will likely show that some people are in the wrong positions, and that others do not have the skills needed to move the company forward. Identify those who are ready for promotion vs. those who need to be replaced. Reward the former, weed out the latter, and then look for new people with the skills you need for growth. People are truly your most important resource, so make sure you lead and manage them well, and give them the training and development they need in order to succeed. Finally, you need to have a little talk with yourself. Are you ready to lead a growth company? The past three years have not been easy. Many CEOs have struggled and fought to keep their companies at steady state. We interviewed over 100 CEOs for our new book Lessons from the Edge. All their companies were “on the edge;” most of them survived but a few crashed and burned. The edge is such a fine line. One bit of good – or bad publicity, a customer who places a big order – or goes bankrupt, a banker who extends your line of credit – or unexpectedly pulls your loan, can make – or break a growing company. You need to ask yourself whether you are ready for the roller coaster ride. If you decide this isn’t what you want to do – you don’t have the stamina, the financial resources, or the desire to grow, then think about some alternatives. You might want to sell your company, or hire a CEO or COO who can grow the company, or find a partner to share the risks and responsibilities. And even if you decide to stay on, make sure you develop a succession plan and groom new leaders to take on new responsibilities in your company. Return to Top |
| 3. | Center for Women’s Business Research: What are some of the opportunities for growth? Matthews: I see two big opportunities for growth: ethical leadership will attract great people and customers to your company, and the global marketplace will provide many opportunities for the expansion of products and services. One of the responsibilities of the leader is to establish and communicate the values on which the company will operate. The most successful growth companies I know have a set of values which include the following: (1) Treating others the way you’d want to be treated, i.e., with humility, dignity and respect. By the way “others” include employees, customers, vendors, suppliers, and shareholders. (2) Share the rewards with those who produce – and get rid of those who don’t. (3) Give back to the community and accept responsibility for making the world a better place. A company whose leader can tell people where they are going (the plan), how they are going to get there (the strategy), and the values that need to guide their decisions and their behavior has an edge in attracting and retaining great people and customers. Another huge opportunity for growth is the global marketplace. Countries like China and Russia, in particular, offer some exciting markets for current and new products and services. But it takes time to learn the norms and the no no’s, you need cultural sensitivity, and the exchange rates and financing issues are challenging. I predict we’ll see more partnering arrangements as more companies move into new markets in our global economy. Return to Top |
| 4. | Center for Women’s Business Research: What is your advice to women entrepreneurs? Matthews: Focus on customer needs and learn how to build a great organization that will sustain growth. My goal is to help more companies grow. So every day I ask myself the same three questions: What do CEOs and entrepreneurs need to know to manage growth? How do they learn it? How can we package it and make it easier for them to learn? Those questions have enabled me to develop products and services that meet the needs of my customers and help them learn to manage growth. Here’s what CEOs and entrepreneurs need to know to manage growth: How to build a great organization that can sustain growth, that operates on your values, and that can continue long after you decide to do other things with your life. How to finance your growth, what kind of financing to seek at different stages of growth, and what the trade-offs are regarding debt and equity financing. How to manage yourself, your time, your emotions, your health, your personal growth and development, family and community. How to market and sell your products and services and deliver on your brand promise. How to manage the production function, i.e., source, produce and distribute your goods and services. How to manage the things that are completely out of your control, e.g., changes in interest rates, international exchange rates, politics, world events, or the price of tea in China! In addition to what they need to know, I have learned a lot about how my customers like to learn: They prefer to learn from each other. The Women Presidents’ Organization, TEC, the Young Entrepreneurs’ Organization, YPO and many other CEO organizations understand the importance of peer learning. The Edward Lowe Foundation has made “peerspectives” one of the hallmarks of the programs they have developed to help entrepreneurs get to the “next level.” They prefer to learn through stories. For this reason my books are full of stories and real life examples of CEOs who have had problems, made mistakes, and are willing to share what they learned from their experiences. They want “just-in-time” knowledge. A friend of mine listened to another CEO describe what he did to successfully merge a new acquisition into his established company. My friend told me, “I made a note to call the guy when I acquire a company! Since I’m not planning an acquisition at the moment, I didn’t pay that much attention to the details.” So all my programs and services are focused on helping CEOs and entrepreneurs learn what they need to know to manage growth and are designed around their learning preferences. One of the reasons I left the Kauffman Foundation and founded Boulder Quantum Ventures was to be a credible source of knowledge about how to grow a company. I’m living and breathing what I talk about in my books, articles, speeches and workshops. I know what it’s like to have problems meeting payroll, a customer cancel a big contract, an employee whose performance is not up to par. But I also know that if I can help more CEOs and entrepreneurs learn how to lead and grow successful companies that this will result in more jobs, more wealth, and more self-sufficient people in healthy communities. And if I do this, then Boulder Quantum Ventures will grow as well. Return to Top Click here to return to homepage |
Citation
Center for Women’s Business Research. “A Conversation with Dr. Jana Matthews.” Washington, DC.