MBAX 6100 Entrepreneurship & Small Business Management

1. MBAX 6100Entrepreneurship & Small Business Management Frank MoyesLeeds College of Business University of ColoradoBoulder, Colorado Corporate Entrepreneurship III

2. Today’s Agenda • Corporate Entrepreneurship – Intrapreneurship • Lucent case • Feasibility - Is this a good industry? • Entrepreneur Interview Corporate Entrepreneurship III

3. Next Week’s Schedule • Corporate Entrepreneurship • Competitive advantage Corporate Entrepreneurship III

4. Obstacles to Corporate Entrepreneurship • Systems • Organization Structures • Strategic directions • Policies & Procedures • People • Culture Morris & Kuratko, Corporate Entrepreneurship Corporate Entrepreneurship III

5. Corporate Entrepreneurship - Intrapreneurship • Innovation • Managing innovation • Managing ego "Nobody talks of entrepreneurship as survival, but that's exactly what it is and what nurtures creative thinking." -- Anita Roddick Corporate Entrepreneurship III

6. Sources for Today’s Talk • Gifford Pinchot & Ron Pellman, Intrapreneurship in Action, 1999, Berrett-Koehler Publishers • Norman Johnson, Senior Vice President Weyerhaeuser Company, “Acquiring and Managing Creative Talent”, Creative Action in Organizations, Ford and Gioia, 1995 Sage Press • A J Chopra, Managing the People Side of Innovation, 1999 Kumarian Press • H. A. Simon, “How Managers Express Their Creativity” • My own experiences Corporate Entrepreneurship III

7. 0 Innovation Corporate Entrepreneurship III

8. What is Innovation? • “Ability to bring something new into existence.” Webster • Artistic • “human process leading to a result which is: (Kao) • novel (new) • useful (solves a problem or satisfies a need) • understandable (can be reproduced)” Corporate Entrepreneurship III

9. Creativity - How Does It work? • Process vs. Intuition • Logical Process • become aware • define the problem • consider alternatives • pick best solution • Mental Leap • Eureka! Corporate Entrepreneurship III

10. Management Innovation • Defines creativity as problem solving • Problem solving depends on knowledge & expertise • Prerequisites of creativity are • 50,000 chunks • 10 years of experience H. A. Simon, “How Managers Express Their Creativity” Corporate Entrepreneurship III

11. 0 Managing Innovation Corporate Entrepreneurship III

12. Managing Innovation • What do creative people want? • Manager’s impact on innovation • Ego agenda Corporate Entrepreneurship III

13. What Do Creative People Want? • Same things that everyone wants • Recognition of achievements – public and private • Intrinsic & extrinsic motivation • Compensation equal to peers • Recognition of their peers • See the results of their work • To learn new skills • Toys Corporate Entrepreneurship III

14. Creative People Can Be a Pain in the Butt • Trouble being accurate, punctual and proper. Other things are more important to them. • More loyal to tasks, ideas or profession than organization • Often don’t like working in teams • Weird work habits Corporate Entrepreneurship III

15. Most Ideas Are Not “Suitable” • Creative people produce ideas that are fresh and different – not always concerned with practicality • People create ideas for themselves, not with you or your problems in mind Corporate Entrepreneurship III

16. 0 What Should Be Your Response to a “Bad” Idea? • How do you say idea is unacceptable, but not make person defensive? • The more negative your reaction… the more likely it is to be the basis of a good idea • Find the seeds & fix flaws Corporate Entrepreneurship III

17. 0 Seeds & Flaws • Find seeds • Ideas are raw material – represent the beginning of the creative process • Find 3-5 advantages • Identify the problems • Fix flaws • Do you want to fix the flaws? • Tailor by eliminating the problems • Transform by thinking of a different way • Easier to add practicality to a fresh but flawed idea, than to add freshness to a practical but old idea. A J Chopra, Managing the People Side of Innovation, 1999 Kumarian Press Corporate Entrepreneurship III

18. 0 Managing Ego Corporate Entrepreneurship III

19. Managing Ego • What you say about my idea can really hurt - attacks my self-esteem • Maslow hierarchy of needs • Need to maintain or enhance our self-esteem • Fear of being thought stupid • Perceptions of other people’s reactions to us are important • Reality check, not that you need approval Corporate Entrepreneurship III

20. We All Want to Look Good • Want to be liked, attractive • Want to belong • Don’t want to be considered dumb • Don’t want to be embarrassed • You try to look good by? • Making someone else look less good • Taking more than your fair share of the credit • Confirm how good we are • Being vindictive or petty Corporate Entrepreneurship III

21. How Do We Respond to Attack on Our Self-esteem? • Focus changes from the task to reacting to the blow • Repair the damage it caused • Making sure I don’t suffer any more • Not giving you any more ideas • Give you only safe ones • Defend my idea • Attack your idea • If you’re my boss and want me to implement, then don’t try very hard • Sulk Corporate Entrepreneurship III

22. How Deal with Your Own Ego? • Someone tells me that my idea is dumb • Tell person that they don’t understand my idea • Convince them of the benefits • Shut up and sulk Corporate Entrepreneurship III

23. 0 Your Strategies for Managing Innovation Corporate Entrepreneurship III

24. Senior Management • Create a vision • Determine what is blocking innovation – informal channel • Find and reward sponsors • Foster system for self-organizing teams • Show dissatisfaction for the status quo • Intolerant of selfish politics Gifford Pinchot & Ron Pellman, Intrapreneurship in Action Corporate Entrepreneurship III

25. Middle Management • Role is to create innovative culture • Bet on people, not the idea • Build network of sponsors • Ask for advice, not resources • Become a sponsor • Know the customer Gifford Pinchot & Ron Pellman, Intrapreneurship in Action Corporate Entrepreneurship III

26. Innovators • Use informal organization • Build effective teams • Build network of sponsors • Ask for advice before asking for resources • Help people in other parts of the organization • Know the customer Gifford Pinchot & Ron Pellman, Intrapreneurship in Action Corporate Entrepreneurship III

27. Issues in Establishing Innovation • Should you promote conflict? • Is pressure good? • How deal with group think? • Should you recruit from outside or promote from within? • Lone wolf vs. team player – which is more effective? • How prevent “idea infanticide”? Corporate Entrepreneurship III

28. How Not to Trigger Corporate Immune System? • Develop sponsors • Commitment & active involvement of top management • Reach out across boundaries • Get close to customers • Understand financial dynamics early Corporate Entrepreneurship III

29. Conclusion on Managing Innovative People • Creative people often are a little weird, but want what everyone wants - to be recognized and respected. • Find the seeds and fix the flaws • Manage the ego agenda, including your own • Your strategies • Listen Corporate Entrepreneurship III