Growth Requires Both Managers and Entrepreneurs
We’ve just completed Part 1: The Trouble With Scale—exploring why real data beats perfect models, alignment needs flexibility, and efficient systems can create ineffective silos. Now we’re starting Part 2: The Right People for the Right Problems. These chapters explore how different challenges require different ways of thinking. Today’s chapter: why your business needs both managerial thinking (for optimization) and entrepreneurial thinking (for growth)—and how to know which approach to use when.
One Takeaway: Your business needs two things to succeed: you must keep things running smoothly and try new ideas. Managers focus on making systems efficient and predictable. Entrepreneurs focus on experimenting and growing. Both are key to growth, but in different ways.
No Magic Solutions
There’s no one right way to make a business work. The world is unpredictable, and businesses need to handle both routine operations and new challenges. Companies that focus only on routine efficiency may stop growing, while those that only chase new ideas can become disorganized.
Understanding the operators, refiners, and creators from the previous chapter helps explain why you need different management approaches. Operators and refiners typically respond well to thinking like managers. They need structured processes and systematic optimization. Creators act like entrepreneurs and need flexibility, experimentation, and tolerance for uncertainty.
Different Approaches for Different Problems
Every business faces two kinds of problems: ones you’ve seen before and ones you haven’t.
Problems you’ve seen before are predictable. They have clear solutions that can be repeated. These problems need structured processes, which is where managers shine.
Problems you haven’t seen before are unpredictable. These need flexibility and creativity. This is where entrepreneurs shine. They helps businesses handle new challenges that don’t fit existing frameworks.
Thinking Like a Manager —Scaling and Optimizing
Managers focus on making things work better.
Focus on efficiency: Managers set clear objectives, measure performance, and refine operations. They want to cut costs and maximize productivity. They refine processes and set standards.
Data-driven decisions: Managers rely on analytics to make informed decisions. They use historical data to predict outcomes, divide resources, and improve operations.
Scalable solutions: The best use of managerial thinking is applying proven solutions to repeatable problems. This ensures consistency and reliability which are things repeat customers value and expect.
Thinking Like an Entrepreneur —Adapting and Innovating
Entrepreneurs focus on trying new things.
Focus on innovation: Entrepreneurs act with creativity, adaptability, and they break conventional constraints. They explore new ideas, experiment, and embrace change.
Use judgment: Entrepreneurs must make decisions with incomplete data. This requires leaders to make calls based on experience, vision, and market insight. They are comfortable with uncertainty.
Non-scalable solutions: Some opportunities need unique, specific solutions. Sometimes these solutions may not scale well, but they can unlock advantages that would otherwise go unnoticed.
Examples from the Real World
At Lyft and Uber, we needed both approaches. Each had its place, but both were necessary for growth.
Managers handled the critical basics: Standard pricing, driver payments, and fleet management (generally) worked the same way in every city. This kept operations reliable and costs down.
Entrepreneurs handled the unknowns: Each new city was different. What worked in New York didn’t work in Denver. We had to adapt our approach to local needs instead of using a one-size-fits-all model.
This pattern shows up everywhere:
Retail: Managers streamline inventory and supply chains. Entrepreneurs test new product mixes and campaigns.
Hospitality: Hotel managers focus on keeping operations smooth. Entrepreneurs create new guest experiences and services.
Real Estate: Managers standardize listings and contract processes. Entrepreneurs find new investment opportunities and unique property marketing strategies.
Co-dependence, Not Competition
Managers can’t manage what doesn’t exist. Without entrepreneurs creating new opportunities, managers don’t have anything to work on.
Entrepreneurs can’t continue to try new things if managers don’t create stability. Managers create the systems and scale.
Neither works alone. Both together create growth.
How Businesses Can Use Both
Give each type of work its own space. Structure tasks so that process-driven work and creative problem-solving each have space to thrive.
Connect efficiency-focused teams with innovation-focused teams. Make sure new ideas can actually be implemented and proven solutions stay relevant.
Measure different things. Traditional performance metrics (like KPIs) don’t always capture the value of entrepreneurial work. Companies must develop ways to evaluate both efficiency and adaptability.
The Bottom Line
Your business needs both efficiency and innovation. Focus only on efficiency and you’ll miss future opportunities. Focus only on innovation and you’ll struggle to scale.
Success means knowing when to use each approach and creating a culture that values both structured thinking and creative problem-solving.
But here’s where it gets interesting: even when you know you need both approaches, how do you actually grow? Is optimization enough, or does growth require something more fundamental?