Chapter 12

1. Chapter 12 Leading the Entrepreneurial Organization

2. Introduction • Entrepreneurial initiatives are driven by individuals but the practice of corporate entrepreneurship is the is a collective responsibility • It is imperative that managers effectively lead individuals • Top-level • Middle-level • Frontline….

3. Traditional General Management vs. Entrepreneurial Leadership: A Comparison of Beliefs and Philosophies

4. Top-Level Managers in the Entrepreneurial Organization • Senior level managers are critically important for providing three core responsibilities • Compelling vision • Well-designed company architecture • “Right” personnel “the entrepreneurial message must flow from the top”Hidgon (2000)

5. Middle-Level Managers: Conduits in the Entrepreneurial Organization Middle-level managers serve as a conduit between those at the top and those at the operating level or front-line Their central position in the organization allows them to gather and absorb innovative ideas from inside and outside the firm

6. Middle-Level Manager’s Entrepreneurial Activities • Endorse • Refine • Shepherd • Identify • Acquire • Deploy

7. Middle-Level Managers: Conduits in the Entrepreneurial Organization Distinction between top-level and middle-level managers Top-level managers often determine strategic actions Middle-level managers most often implement the strategic entrepreneurial activities designed by top-level management

8. First-Level Managers and Non-Managerial Personnel First-level managers have three roles within the corporate entrepreneurship realm Experimenting roles Adjusting roles Conforming roles

9. First-Level Managers and Non-Managerial Personnel First-level managers and non-managerial personnel operate as both • Order takers • Autonomous actors • Should be expected, not just tolerated

10. First-Level Managers and Non-Managerial Personnel These individuals are in unique positions to recognize entrepreneurial opportunities because they frequently • Work at positions within the organization where much of the core transformational activity • Have boundary-spanning responsibilities or important linkages to key external stakeholders associated with their jobs

11. Guidelines for Entrepreneurial Leadership at Any Organizational Level 1. Obsession with finding new business opportunities 2. Construction of a “plan” that clearly defines the opportunity and specifies a strategy for its exploitation 3. Ability to identify and gain support of key stakeholders

12. Variations in Managerial Roles Across the Forms of Strategic Entrepreneurship Strategic renewal—involves the adoption of a new strategy Sustained regeneration—involves the introduction of a new product into a preexisting product category or introduction of an existing product into a new (to the company) but preexisting market Domain redefinition—involves the creation of new or reconfiguration of existing product categories or market space Organizational rejuvenation—involves the enactment of a major internally focused innovation aimed at improving strategy implementation Business model reconstruction—involves the design of a new or redesign of an existing business model.

13. Variations in Managerial Roles Across the Forms of Strategic Entrepreneurship Top Management Roles: Ratifying—that is, articulate strategic intent, monitor, endorse and support Recognizing—that is, recognize strategic potential, set strategic direction, empower and enable Directing—that is, plan, deploy resources, command

14. Variations in Managerial Roles Across the Forms of Strategic Entrepreneurship Middle Management Roles: Championing—that is, nurture and advocate, champion, present alternatives to top management Synthesizing—categorize issues, sell issues to top management, blend strategic and hands-on information, synthesize Facilitating—that is, nourish adaptability and shelter activity, share information, guide adaptation, facilitate learning Implementing—that is, implement, revise and adjust, motivate and inspire, coach

15. Variations in Managerial Roles Across the Forms of Strategic Entrepreneurship Operating Management Roles: Experimenting—that is, learn and improve, link technical ability and need, initiate autonomous initiatives, experiment and take risks Adjusting—that is, respond to the challenge Conforming—that is, be a good soldier, follow the system

16. Questions?

17. Good Vision Statements It is written in the present, not future tense. They describe what we will feel, hear, think, say and do as if we had reached our vision now. It is summarized with a powerful phrase. That phrase forms the first paragraph of the vision statement. The powerful phrase is repeated in whatever communication mediums you have to trigger memory of the longer statement. It is not a brand strap-line. It describes an outcome, the best outcome we can achieve, but does not provide numeric measures of success.

18. Good Vision Statements It uses unequivocal language/it does not use business speak or words like maximize or minimize It evokes emotion. It is obviously and unashamedly passionate. However, it separates the hard aspect of vision in what we see, hear and do from the soft aspect of vision in what we think and feel It helps build a picture, the same picture, in people's minds; remember the importance of STORYTELLING

19. Good Vision Statements “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.” “SAS transforms the way the world works, giving people THE POWER TO KNOW®.”

20. Next Step…Ford