Corporate Entrepreneurship III 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?  This is crap!  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 the more likely it is to be the basis of a good idea

Corporate Entrepreneurship III 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?  My 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 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  that they are not calling me dumb, just the idea

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 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 Creativity = (quality of ideas + quantity of Ideas) * climate Entrepreneurship = creativity + action (to implement)