How do we deal with the inherent tension between innovating and leading? In this episode of the INSEAD Explains Entrepreneurship series, Vibha Gaba, the Berghmans Lhoist Chaired Professor of Entrepreneurial Leadership, discusses the challenges of leading a start-up. 

She explains how, as a start-up moves through the ideation, incubation and scaling phases, it demands a different mindset and skills of the leader, as well as an adaptive organisational structure. We see the tension between innovation and execution as a start-up scales, when the culture of experimentation, risk-taking and willingness to pivot makes way for a stronger focus on operational efficiency and delivering consistent results. It’s also about managing the tension between short-term and long-term priorities, says Gaba.

As such, leaders need to iterate and pivot between being flexible and being disciplined in execution. But they don’t have to do it alone. Unsurprisingly, founder entrepreneurs struggle with relinquishing control. What they need to do, instead, is to build high-performance teams that complement their passion with the disciplined execution to deliver their vision.

With the team comes the need for structure. But there is no one-size-fits-all model; it depends on its phase of growth, its business model and the industry. The structure generally follows the strategy – but even strategic priorities can change. Start-ups benefit from structures that are flexible, agile and adaptable. As for the leaders, the key is to maintain flexibility and agility, as well as to clearly communicate about the division of labour and the expectations of different roles.

Gaba stresses that the tension between innovation and leadership is natural and necessary. Start-ups need both creative disruption and strong execution to succeed. The best leaders embrace this tension rather than eliminate it, allowing innovation to thrive while keeping the business sustainable. After all, learning to lead a venture is a continuous process. Leaders need to have a growth mindset, recognise their blind spots and assemble a team to complement them in this journey.