Visionaries are notoriously poor at supervising staff, negotiating with investors, or training successors. The business now needs a professional manager with a new set of skills to manage and sustain growth, that are distinct from the skills necessary to start an enterprise and promote a vision. A professional manager is brought on board and the adolescent enterprise continues to do well, but the buisness culture begins to change . The manager creates structure, policies and procedures, and emphasizes the bottom line. Governance Business in emerging industries go through these three stages characterised by vision management and governance.
Governance is a system of checks and balances whereby a board is established to manage the managers.
Governance is sometimes conceived as a virtuous circle that links the shareholder to the board, to the management, to the staff, to the customer, and to the community at large. Boards review, confirm, and approve the plans and performance of the senior management, but they do not usually provide vision. The board needs to know what the vision is, and then ensure that it is maintained. Management, on the other hand, is involved in the daily operations of putting the vision into action. It is important not to confuse control with ownership.