EXECUTIVES vs. SMALL BIZ OWNERS; Who's the Better Manager?

An executive’s career is often valued largely on perception because of their affiliation with a large company or by the privilege of graduating from a prestigious university.  A common thought is that hiring a person from the Ivy League or Fortune 500 group will spread some of the “Midas touch” around for a new employer.  The small business owner on the other hand is often perceived to be disastrous when let lose in a large firm.  After all, this precocious entrepreneur often does it “their way” and may have little schooling on professional management techniques.  I am stereotyping of course, but how much of the perception is reality and what are the favored characteristics and flaws from both groups?  What is it that will actually help these groups be winners in the game of business? I have had the privilege of working in both large and small businesses and I objectively share my observations with you.

Executives often have the prettiest PowerPoint presentations I have ever seen.  This group can put together amazingly complex spreadsheets and reports that would cost a small business their entire revenue stream.  The Executives also know teamwork and often sit on several cross-functional committees.  For as strong as these Executives are in these areas, it is often the company’s scale and business model set-up by its founders that carry the weight of so much administration rather than a direct return from their efforts.  Executives often put fires out and deal reactively to “manage” the ship rather than steer it.  I have met several Executives over the years that have held a skewed perspective on the significance and impact of their personal contributions.  In reality, many have never run a company and have not developed a cunning instinct for business as much as a set of internal cultural beliefs from their career. This limited view of the “big picture” often leads to waste, mediocrity, politics, scope creep, and a focus on “career” rather than “business”. 

The Small Business Owner on the other hand can have amazing laser-like focus on their customers really want and projects that really move the needle. Good Small Business Owners can be aggressive, decisive, and visionary in many regards; constantly propelling their companies forward.  There is something to be said for a manager that could go personally bankrupt if he makes the wrong decision on the job.  However revered these icons are, they often run into problems evolving into sustainable organizations beyond their own persona.  Ego and isolation as a sole decision maker can be blinding. Limited capital can lead to emotional decisions and mistakes can be made from being a little too aggressive and by not surrounding themselves with great talent. 

So who wins - Executives or Small Biz Owners?  As you can probably tell; it’s neither.  The best managers have the ability to combine multiple perspectives, to understand the big picture, to be decisive, to derive a vision, to effectively communicate it, to manage people, and to execute as an organization.  At the end of the day, these leaders are just people.  Regardless of background, they may have developed a well balanced set of professional management skills.  So, if “validating” a prospective employee’s skills, it would be wise to look past their prestigious titles and how many or how few employees were at their last company.  Instead, you might evaluate a person’s character and values first and then their conceptual and functional skills that will drive business results and not their own agendas!