Pivot: How Top Entrepreneurs Adapt and Change Course to Find Ultimate Success

Chapter 1

Pedal to the Metal

While I was launching my startups, I often heard that nine out of ten startups fail. I have seen this statistic challenged, but it is clear to anyone involved with startups that the odds are stacked against the entrepreneur. It has been shown time and time again that entrepreneurs launch startups that have high degrees of uncertainty. With higher degrees of uncertainties come greater risks. With greater risks come greater rewards, along with a greater chance to fail. So, as an entrepreneur you might be tempted to conclude that high failure rates are something you must live with. I disagree and contend that with the proper management techniques you can increase your chances to succeed. Before you start deploying traditional management techniques, let me share a little history on these techniques.

A Little History

Traditional management techniques are based on a 1930s movement focused on helping large corporations manage their firms. Many believe that Peter Drucker, an icon in the world of management, started this movement. Drucker was a fascinating person with a rich history. His view of the world was most definitely shaped by his father, who used to have gatherings that included guests like Sigmund Freud and Joseph Schumpeter. Drucker evolved a strong interest in human behavior, which eventually led to a desire to understand how humans engage in business. This interest led him to write a number of very important management books, at a time when only ...