Transforming your economy requires focusing on both volume and flow of the Pipeline. The two goals of Pipeline Management are to increase both the quantity (the volume) and the quality (the flow) of the supply of entrepreneurs and enterprise in the community – in other words, to make the Pipeline grow and make the Pipeline flow.
Making the Pipeline grow involves increasing the number of entrepreneurs and enterprises, relative to the population (a change in size or quantity).
Making the Pipeline flow requires increasing or improving the movement of entrepreneurs and enterprise through the conduit. There are places where the flow tends to slow, stop or terminate: weak points, stuck points and crash points.
Increasing the flow and avoiding these stress points, positively influences the “quality” of the entrepreneurs and enterprises in a community’s portfolio of business assets.
The Pipeline uses two variables to capture the “quality” of the entrepreneurs and enterprises – skill level to describe the quality of the entrepreneurs and stage in the life cycle of the business to describe the quality of the business.
While higher skill levels (representing the vertical dimension of the pipeline) are obviously better than lower skill levels, and later stage, more mature companies are obviously more valuable than early stage companies, it is a truth, like the law of gravity, that all entrepreneurs start off as Rookies (the lowest skill levels) and all businesses start off as ideas in the mind of an entrepreneur or a team of entrepreneurs (Pre-Venture life cycle stage).
This means that the ideal flow of the Pipeline is always from the lower left (lower skill levels and earlier life cycle stages) to the upper right (higher skill levels and later life cycle stages in the business).
Flow in the Pipeline is not linear; there are graduated, discontinuous intervals that the entrepreneur and the enterprise must traverse.
To achieve flow in the Pipeline, the individual segments must be connected.