MBAX 6100 Entrepreneurship & Small Business Management Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado Corporate Entrepreneurship III

Today’s Agenda Corporate Entrepreneurship – Intrapreneurship Aaron Kennedy Review Noodles case Make recommendations Sustainable Competitive Advantage Hand-out mid-term Corporate Entrepreneurship III

Next Week’s Schedule Funding Entrepreneurial Ventures – Venture Capital Chris Scoggins, Sequel Venture Partners Rob Balgley, Skyetek Believer Capital – private placement Doug Collier, Boulder Innovation Center Read BZ-6 Hand-in mid-term & entrepreneurship paper Corporate Entrepreneurship III

Corporate Entrepreneurship Week 5 Obstacles to corporate entrepreneurship Week 6 Innovation in corporations Week 7 You as an Intrapreneur Corporate Entrepreneurship III

Corporate Entrepreneurship - Intrapreneurship Pinchot: Senior Management, Middle Management, Innovators Managing creative people Simon: management creativity Corporate Entrepreneurship III

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

Intrapreneurship - Gifford Pinchot Team based People, not ideas Sponsor Intraprise Freedom to act Close to customers Understand financial dynamics early Reach out across boundaries Corporate Entrepreneurship III

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

Middle Management Role is to create innovative culture Create vision that inspires your people & those in other parts of org Bet on people, not the idea Become a sponsor Build network of other sponsors Gifford Pinchot & Ron Pellman, Intrapreneurship in Action Corporate Entrepreneurship III

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 Gifford Pinchot & Ron Pellman, Intrapreneurship in Action Corporate Entrepreneurship III

Managing Creative People What do creative people want? Manager’s impact on creativity Getting the most out of creative people’s ideas Ego agenda Corporate Entrepreneurship III

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

What Is Your Impact on Creativity You are responsible You need to make good decisions You always are time & resource constrained Corporate Entrepreneurship III

Creative People Can Be a Pain in the Butt “Creative people have 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

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

What Should Be Your Response to a “Bad” Idea? What Should Be Your Response to a “Bad” Idea? Corporate Entrepreneurship III

How Do Your Actions Impact Creativity How Do Your Actions Impact Creativity You must act - people like to see that they have contributed to your thinking Don’t ask for ideas if you don’t want them Getting good ideas and acting on them has other benefits People want to help you because they have a sense of ownership They feel valued & respected Attracts people to your team Corporate Entrepreneurship III

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 Confirm how good we are Reality check, not that you need approval Corporate Entrepreneurship III

We All Want to Look Good Learn strategies when we were a teenager 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 Being vindictive or petty Corporate Entrepreneurship III

How Do We Respond to Attack on Our Self-esteem? Corporate Entrepreneurship III

How Deal with Your Own Ego? Corporate Entrepreneurship III

How Deal With Ego of Others? Recognize we all have self-esteem No, but response Corporate Entrepreneurship III

Conclusion on Managing Creative People Creative people often are a little weird, but want what everyone wants - to be recognized and respected. Manager’s actions determine creativity Find the seeds and fix the flaws Manage the ego agenda, including your own Corporate Entrepreneurship III

Corporate Entrepreneurship III

Management Creativity 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

Creator vs. Entrepreneur Creator vs. Entrepreneur Creativity = (quality of ideas + quantity of Ideas) * climate Entrepreneurship = creativity + action (to implement) Corporate Entrepreneurship III