Strength of the Management team- the key to attracting Investors

        

Strength of the Management Team- The key to attracting investors, explains what is the importance of strong management team in an organization and how this strong management team is going to attract the original investors, and also acting according to change in environment and their leadership role in order to establish an environment that motivates specific constituents to change in favor of them.

Potential investors in entrepreneurial enterprises place significance on the ability of the management team to enact change in receptive markets as to earn a multiple of their original investment. It is the ability of the management team to generate confidence that they can deliver results that makes the difference to investors. They must be able to demonstrate their ability to deploy people to execute processes that deliver products and/or services to large markets.

A successful management team may be able to repeat their successes as serial entrepreneurs by knowing how to entertain, inform, convince, persuade, and negotiate with people, and manage processes. The management team must be able to demonstrate that they can enact change, both by being able to cause it or respond to it depending upon opportunities and conditions (especially crises). Causing change affects competitors, but being able to respond to change caused by competitors is essential to sustainability also. The acceptance of new products and/or services in existing markets, or existing products and/or services in new markets is based upon employee, customer, and even supplier constituencies being willing to change their behaviors. Hence management must play the leadership role in order to establish an environment that motivates specific constituents to change. This means being able to communicate both aspirational and inspirational messages that cause others to change their behaviors to adopt a product and/or service, substitute. Such change occurs by understanding the difference between what people need and what they want, and creating emotional messages that cause them to act with urgency.

My view on this article is, strong management team is not only the one in attracting the investors, a strong management team is necessary in every part of the organization, in order to build successful future of the company. The way the author explained of how the management should react with the change is really impressive, in my words the strength of management team is not in responding according to the changes but it lies in  how their employees, supplier, customer changes according to the way organization changes, it lies in delivering their aspiration and inspirational messages that impact the behaviors of the people who are the part of their company, this thing  really show the potential of strong management team. In order to build or in order to collapse everything in the hands of management.