El5 Hiring Entrepreneural Leadership Stereotype

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Hiring an
Entrepreneurial
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Leader
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What to look for by Timothy Butler

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FEATURE HIRING AN ENTREPRENEURIAL LEADER
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2 HARVARD BUSINESS REVIEW MARCH–APRIL 2017

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HIRING AN
ENTREPRENEURIAL
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LEADER
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WHAT TO LOOK FOR BY TIMOTHY BUTLER
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ntrepreneurs have become of all shapes and sizes aspire to be
the new heroes of the business seen as highly innovative, nimble,
world. In the same way that and agile—all qualities traditionally
No
Robert McNamara and his fel ascribed to entrepreneurs.

low Ford Motor Company “Whiz Yet in their recruiting efforts, com
Kids” elevated general managers to panies do not have a scientific way of
star status, figures like Mark Zucker separating true entrepreneurs from
berg and Steve Jobs have made entre other talented candidates. Instead,
preneurs the latest business icons. At they fall back on broad stereotypes.
Harvard Business School, where I ad In my research I’ve explored how
vise the career development program, firms can address that problem. In
even students who plan to join blue an effort to understand what makes
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chip firms and have no intention of ever entrepreneurs special, I’ve compared
launching start-ups would be insulted the psychological-testing results
if someone told them they weren’t of more than 4,000 successful en
“entrepreneurial.” I understand why: trepreneurs from multiple countries
Entrepreneurialism is highly valued against those of some 1,800 business
in today’s labor market. Companies leaders who described themselves as
ILLUSTRATION BY ALEX FINE

MARCH–APRIL 2017 HARVARD BUSINESS REVIEW 3
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general managers but not as entrepreneurs. Unsur company really need one? Not all organizational chal
prisingly, the two groups had much in common. On lenges call for an entrepreneurial approach. In my re
28 of 41 dimensions of leadership, there was little or search successful founders as a group scored extremely
no difference between their skills. Yet when I looked high on a scale that measures the desire for power and
more closely, combining their skill assessments with control—and notably higher than the nonentrepreneur
data on their life interests and personality traits, I ial leaders. This quality can cause conflict in situations
discovered that entrepreneurs had three distinguish
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where the sharing of information and power is vital to
ing characteristics: the ability to thrive in uncertainty, organizational performance. What’s more, it will often
a passionate desire to author and own projects, and not play well in organizations that have established
unique skill at persuasion. I also found that many of matrix structures, need porous boundaries between
the traits commonly associated with entrepreneurial working groups, or require high levels of collaboration.
leaders didn’t truly apply. Hiring managers should carefully consider the par
For instance, entrepreneurs aren’t always excep ticular leadership challenge they’re recruiting for. If it’s
tionally creative. But they are more curious and rest a greenfield situation, a turnaround, or any other cir
less. They aren’t risk seekers—but they find uncertainty cumstance that demands intensive initiative on a con
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and novelty motivating. In this article I’ll tackle some of tained project, then an entrepreneurial style is likely to
the myths about entrepreneurs and explain the more add value. But if the situation involves a highly inter
nuanced reality. I’ll also offer evidence-based, practical dependent matrix of working units, you might well do
advice on interview questions and résumé screening better looking for a different leadership profile.
that hiring managers can use to distinguish entrepre If you do conclude that an entrepreneurial leader
neurial candidates from other high-potential talent. is what your organization needs, then it’s important
to understand the entrepreneurial character in a nu
anced, sophisticated way. Let’s take a look now at the
IN BRIEF
KNOW YOUR REQUIREMENTS popular perceptions about entrepreneurship and at
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THE PROBLEM Before looking to hire entrepreneurial leaders, man what the research indicates really drives the people
Though entrepreneurs agers must answer an important question: Does the who are good at it.
are the new heroes of
the business world,
most companies lack
a scientific approach
to recruiting managers
with entrepreneurial THE STEREOTYPE: Entrepreneurs a willingness to proceed in unpredictable environ
ments but a heightened state of motivation that oc
are unusually creative.
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qualities. Instead, they

rely on stereotypes. curs at the edge of the unknown and the untried. For
individuals who score high on this dimension, the
THE SOLUTION THE SUBTLER TRUTH: Entrepreneurs unknown is a source of excitement rather than anxiety.
An analysis of the are curious seekers of adventure, Consider Charlotte Yates, who brought her entre
COPYRIGHT © 2017 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.
psychological-testing
results of more than learning, and opportunity. preneurial leadership style to Sprint and IBM before
eventually leaving to help found the telecommunica
4,000 entrepreneurs
and 1,800 general One popular notion is that entrepreneurs and people tions firm Telwares. When she was in a larger corpo
managers showed that who enjoy constantly changing, innovative environ rate setting, she saw herself as taking an approach that
three factors differentiate ments are more creative than others. But there are differed from the one used by the majority of her fellow
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entrepreneurs: thriving many types of creativity in business. Some managers, leaders. “I didn’t follow IBM’s design process and their
in uncertainty, passion for instance, are highly creative at fixing things that are normal chain of command, because my task would
for ownership, and skill
at persuasion. broken and enjoy the challenge of returning a system to have never gotten done,” she says. “I didn’t see myself
a previous state of optimal functioning. While it’s cer as having a tightly defined box; I didn’t see the bound
THE UPSHOT tainly true that entrepreneurs excel at original think aries. I was looking at a blank piece of paper and saying
Entrepreneurs aren’t always ing, so do many nonentrepreneurs. In reality, what sets to myself, ‘Now, what do I want to create here?’”
more creative than general entrepreneurial individuals apart is something slightly Entrepreneurs enjoy the “dreaming it up” process.
managers, but they enjoy different—something both broader and deeper than Like Yates, they are less bound by convention than
pushing boundaries.
They aren’t risk seekers what is typically evoked by the word “creativity.” It’s their corporate counterparts, and they’re more likely
but find novelty motivating. the ability to thrive in uncertainty. to assume things can be done better. For this reason,
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Much like artists, they A critical aspect to this dimension is openness to they thrive in environments where there is a market
want to author and own new experiences. In my research, I’ve found that it is opportunity but no product or service, or where there
projects. And they’re the single trait that most distinguishes leaders who are is a product but the go-to-market strategy is not clear.
natural salespeople.
Hiring managers should entrepreneurial from their more conventional peers. They relish the early stages of projects and tend to be
look for these qualities Openness to new experiences is about having a come less engaged as projects become more routinized
when recruiting. restless need to explore and learn. It entails not just and steady state.

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THE STEREOTYPE: When interviewed, entrepreneurial managers will
ask bold questions, take the initiative in the conversa
Entrepreneurs enjoy and seek risk. tion, exhibit little anxiety about fitting in or providing
the desired responses, and exude sheer, almost im
THE SUBTLER TRUTH: patient, enthusiasm. Do candidates’ answers feel safe
Entrepreneurs are more comfortable or “rule-bound”? Don’t miss any opportunity that al
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with risk. lows candidates to demonstrate their willingness and
capacity to explore the unknown.
Another prevailing view is that entrepreneurial people The following questions will help you identify can
love risk—that they enjoy the thrill of taking chances. didates who will thrive in uncertainty. But don’t look
This is not true; entrepreneurs are not the skydivers for the best answers; look for the extent to which the
of the business world. Like every good businessper candidate champions the value of exploration, learn
son, they seek to minimize risk at every opportunity. ing, new approaches, and willingness to take on risk to
However, many studies have shown that entrepre achieve an important outcome.
neurs have higher comfort with risk than conven
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• Which do you fear most: anxiety or frustration?
tional managers. In other words, when accepting risk
• Are you willing to get into trouble in order to make
is necessary to reach a desired goal, entrepreneurs are
something important happen?
better at living with it and managing the anxiety that
might be disabling to others. My research likewise • Which is more valuable: instinct or wisdom? Why?
showed that the colleagues of entrepreneurial leaders • Which is more valuable: imagination or analysis?
rated them significantly higher than more-traditional Why?
executives on comfort with risk. • A space explorer is looking for people to colonize
Entrepreneurial leaders aren’t necessarily tougher Mars. Have a conversation between the part of you
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and more stress-hardy than their corporate peers—in that would say yes to this mission and the part that
ratings of their resiliency, taken from 360 reviews, would say no.
I found no significant difference between the two • W
e (or a competitor) decided to launch this product
groups. Rather, the point that emerged was that highly in this way. How could we have done it differently?
unpredictable and ambiguous environments are, for
• Rapidly, choose one option from each of the follow
entrepreneurial leaders, a source of motivation. This is
ing word pairs. (Do not try to score these responses,
a second reason they thrive in uncertainty.
but look for a general pattern.)
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CONSISTENCY or FLEXIBILITY
ASSESSING THE ABILITY PROVEN or POTENTIAL
TO THRIVE IN UNCERTAINTY CAREFUL or BOLD
Openness to new experiences and comfort with
risk are the main components of the ability to per EXPLORE or SETTLE
form well in unpredictable environments, although PREDICTABLE or POSSIBLE
many people misperceive the essentials to be tough- BONUS or SALARY
mindedness, hardiness, or resilience. Those are highly
desirable qualities in a leader (and your organization’s SAFETY or OPPORTUNITY
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situation may demand them), but they’re beside the MEDAL or JOY
point if your hunt is for an entrepreneurial leader. PUZZLE or BLANK CANVAS
Here’s what to examine instead: Has the candidate
NIMBLE or STEADY
made choices that clearly favor adventure and learning
over convention and minimization of risk? Examples CHANGE or CONSTANT
might include choosing a less recognized college to pur KNOWN or UNKNOWN
sue a particular passion; spending a year abroad in an PATIENCE or EXCITEMENT
unusual setting as a growth experience; opting to work
FRONTIER or HOME
for a highly innovative small company rather than a big
brand-name company; vacation destinations that in SET or OPEN
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volve hardship but unusual experiences; living in a di WILD or TAME

verse and interesting part of a city rather than the usual VARIETY or CERTAINTY
professional enclaves; taking genuine risks in previous
INHERIT or CREATE
organizational roles; and taking on projects for which
resources are scarce and outcomes uncertain.

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THE STEREOTYPE: That is not to say that entrepreneurial leaders do
not display aspects of authority, expertise, or cha
Entrepreneurs are more personally risma—many do. But the aspect that unites them is not
ambitious than other leaders. the desire to be a decision maker. For such leaders, a
venture is an expression to the world of who they are.
THE SUBTLER TRUTH:
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Entrepreneurs are driven by a need to ASSESSING PASSION FOR OWNERSHIP
own products, projects, and initiatives. To find out who has a hunger for hands-on involve
ment in projects, from start to finish, try to tease out
As mentioned earlier, entrepreneurial leaders, as a the following: Has the candidate been a founder rather
group, score exceptionally high on the need for power than a joiner? Instead of running for class office, for in
and control, and notably higher than conventional stance, did she start a new club, campus initiative, or
general managers (though that group scores quite high business? (Points should be awarded for a pattern of
too). Intrigued by this, I interviewed entrepreneurs to seeking out leadership of any kind, however.) Did she
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learn more. I began to discern an interesting variation make early career choices that would give her creative
on the need for power often associated with entrepre control? Has her path been atypical or opportunistic
neurial leaders: For them, it’s less about dominance rather than one of lockstep promotions? Has she been
and more about ownership. It’s not about having su “in charge of her life” from an early age? Has she been
premacy over subordinates or commanding respect or an entrepreneur, successful or not, at any stage?
authority; it’s about having control over the finished Then watch for these signs: Does the candidate
product. In this way, entrepreneurs have more in “own” the interview by starting to sketch out a vision
common with authors and artists than with dictators. for how the demands of the position could be met?
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Entrepreneurial managers are hands-on. They want Does she (ideally without arrogance) participate al
to be in the middle of the buzz and hustle as a new most right away as a mutual “owner” of any problem
venture, day by day, comes into the world and starts at hand? Does she probe for assurances that she will
to walk, then run. They are not ones to sit in tastefully have the requisite autonomy to lead the new venture?
appointed corner offices moving chess pieces for a Some interview questions to consider:
game being played out floors below them. They want • Which business leaders do you admire? Why?
to be the artisans with their hands on the wet clay.
• What do you take pride in?
They want to take a finished piece from the kiln and
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say, “This is mine”—not in an egotistical or acquisi • What causes new ventures to fail more often: a lack
tive sense but in the sense of “I shape materials that of leadership or a lack of collaboration?
become valuable and useful things.” Long after Apple • Which is a better attitude for a business leader:
had become one of the largest companies in history, passion or professionalism?
Steve Jobs still had to be part of every critical design • Psychologically, do you take work home with you?
discussion, hold prototypes in his hand, and assess ev • How much of who you are is what you do at work?
ery detail from gleam to heft. Power, for the entrepre
• Rapidly, choose one option from each of the fol
neurial spirit, is about being the owner of and driving
lowing word pairs. (Again, do not try to score these
force behind an initiative.
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responses, but look for a general pattern.)

One entrepreneurial leader I interviewed, Andrea
Kimmel, CEO of Sweet Kiddles, a child-care start-up, OWN or MANAGE
put it this way: “I want people to see me as the person SUGGEST or DIRECT
who can make ideas happen. For me, part of being the
LEAD or PARTICIPATE
boss means that people in the organization will come
to me to try to make things happen, to bring change.” SHAPE or CONTROL
This expression of power is different from posi CAPTAIN or NAVIGATOR
tional power (which is based on your rank), charis OWNERSHIP or TITLE
matic power (influencing people through your per
sonality), or expert power (when others defer to your GRACE or POWER
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knowledge). Entrepreneurial leaders do not see them COMPLETE or REFLECT

selves as exerting power from above. They see their ASPIRE or ACCOMPLISH
role as being at the center of a circle rather than the
MEMBERSHIP or POSSESSION
top of a pyramid. An entrepreneur may or may not
be charismatic, but his method is not to inspire the KNOWLEDGE or POWER
masses at the annual convention and then step off PRESIDENT or MINISTER
the stage and retreat to the corner office. He wants to PROFIT or EQUITY
have a hand in the immediate game.

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THE STEREOTYPE: seem well-founded. They’ll probe the relevant issues
and potential courses of action in a steady and intelli
Entrepreneurs are natural salespeople. gent way. They will be honest about the unknowns of
the situation but, at the same time, not waver about
THE TRUTH: their ability to overcome contingencies.
This one is correct. Here are some interview questions about past
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behavior that may be helpful, although the answers
My research corroborated many earlier studies that should be weighted less than a candidate’s actual
highlighted the importance of confidence and per behavior and attitudes during the selection process.
suasiveness among entrepreneurial leaders. When it’s Essentially, you should assess this entrepreneurial
crucial to get somewhere or make something happen, leadership dimension as if you were hiring for an
but it’s not clear how to do so, you must, first, believe executive sales position.
that you can reach your goal and, second, convince all • What experience have you had with sales?
the people whose help you need that you can, too—and
• Could you tell me about a particularly challenging
very often, with little or no evidence to back you up.
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sales experience you’ve had?
Entrepreneurs must be able to sell their vision to
prospective team members before they have anything • Could you describe a life situation when it was
else to offer. Many have to sell their ideas to initial extremely important that you change the opinion
investors and later to venture capitalists and joint- of others?
venture partners. And all entrepreneurs must be able • How does persuading a group of executive peers
to sell to the customer. differ from selling to a customer?
The same applies to people spearheading new ven
tures within larger corporate entities. The renowned EXCEPTIONAL LEADERS HAVE much in common, and
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U.S. automobile executive Lee Iacocca was an entre most can adapt to the demands of whatever organi
preneurial leader who spent his entire career in large zational challenges they face. Leaders who are truly
corporate settings. Though he’d been trained as an entrepreneurial, however, excel when a situation de
engineer, he switched to a sales track early on, and it mands complete ownership of a venture or problem,
was his sales ability that made him exceptional. His become more motivated as uncertainty increases, and
persuasive skill helped him at every turn. Two of his have a remarkable ability to persuade others to follow
sales feats assumed mythic status: Convincing Ford’s their course of action. This profile can be problematic
leadership that the firm should make a large invest in complex organizations where established business
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ment in the development of a lower-priced sports car units need to work intensely together, across bound
(which led to the phenomenal Mustang success story) aries, and leaders need to share both information and
and getting Congress to pass an unprecedented act power on a daily basis. But if your organization needs
bailing out Chrysler. someone to turn innovative ideas into full-blown,
standalone enterprises—or invent and bring to life
completely new models—it may be time to hire an
ASSESSING PERSUASIVENESS entrepreneurial leader. And by following the advice in
Evaluating persuasiveness is different from evaluating this article, you can make sure you actually find what
the ability to thrive in uncertainty and the passion for you’re looking for. Reprint R1702E
No
ownership. Most of the evidence will come directly

from interactions with candidates. Leaders high on TIMOTHY BUTLER is a senior fellow at Harvard Business
School and senior adviser to its Career and Professional
this dimension will exude confidence and genuinely Development program. He is the author of Getting Unstuck:
convince you that they can get the job done. Their A Guide to Discovering Your Next Career Path (Harvard
confidence won’t feel like bluster or hype but will Business School Press, 2010).
Do


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What to look for by Timothy Butler

2 HARVARD BUSINESS REVIEW MARCH–APRIL 2017

WHAT TO LOOK FOR BY TIMOTHY BUTLER

Rob­ert McNamara and his fel­ ascribed to entrepreneurs.

ILLUSTRATION BY ALEX FINE

qualities. Instead, they

4 HARVARD BUSINESS REVIEW MARCH–APRIL 2017

MARCH–APRIL 2017 HARVARD BUSINESS REVIEW 5

6 HARVARD BUSINESS REVIEW MARCH–APRIL 2017

volve hardship but unusual experiences; living in a di­ WILD or TAME

MARCH–APRIL 2017 HARVARD BUSINESS REVIEW 7

responses, but look for a general pattern.)

knowledge). Entrepreneurial leaders do not see them­ COMPLETE or REFLECT

8 HARVARD BUSINESS REVIEW MARCH–APRIL 2017

MARCH–APRIL 2017 HARVARD BUSINESS REVIEW 9

10 HARVARD BUSINESS REVIEW MARCH–APRIL 2017

ownership. Most of the evidence will come directly

MARCH–APRIL 2017 HARVARD BUSINESS REVIEW 11

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volve hardship but unusual experiences; living in a di WILD or TAME

knowledge). Entrepreneurial leaders do not see them COMPLETE or REFLECT

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