CREATING THE ENTREPRENEURIAL UNIVERSITY Professor David A. Kirby University of Surrey D.Kirby@surrey.ac.uk May 2004

Why? Knowledge-based Economy Rapidly changing environment Catalyst for Economic & Social Development Universities Government Research Establishments Rapidly changing environment Organisations need to be more flexible Graduates need to be more entrepreneurial Reduce dependency on the State Commercialise intellectual property

What is the problem? Little entrepreneurial drive Nature of large organisations Impersonal Hierarchical Need for control Corporate culture Short-termism Inappropriate compensation methods Shortage of entrepreneurial talent Academics as entrepreneurs

What can be done? Funding Initiatives – UC/HEIF, etc Learn from Theory Some Success but Limited Impact Short-term/Not permanent Learn from Theory Cognitive Models of Entrepreneurial Behaviour Attitude Models Achievement Models Theory of Intrapreneurship

Cognitive Models Individuals will be entrepreneurial if:- the organisation has favourable attitudes towards such an objective There is support They believe They have the ability to do it (self efficacy) It is intrinsically rewarding Most academics don’t Need to create these conditions

Theory of Intrapreneurship Change the Organisation Commit the organisation Determine the Corporate Model Develop the Culture

Change the Organisation Organisation needs to Recognise itself as a business Not dependent on the State Respond to market changes Customer not Product driven Revel in change Does not resist it Realise the potential of its staff Empower rather than control

Commit the Organisation Needs to be “top down” Senior management need to Be committed Act as role models Support and facilitate Can be “bottom up” but… Slower Dangerous

Determine the Corporate Model Organic/Cellular Structure Flexible Relatively easy Schools/Departments New Product Group/subsidiary Not perceived as core activity Corporate Venture arm Ditto

Develop the Culture (1) Identify Intrapreneurial talent No “handoffs” Self-selection No “handoffs” The doer decides Corporate slack Need time to “play” End the “home run philosophy” Tolerate risk, failure and mistakes

Develop the Culture (2) Patient money Freedom from turfiness It will take time to get returns Freedom from turfiness Involve everyone Cross-functional teams Break down single disciplinary silos Multiple options No one single answer Reward Intrapreneurs Monetary (IP policy) Non-monetary

CONCLUSION “Initiatives” not enough Need to Need more than money Change the organisation Aims Structure Culture Harness and support entrepreneurial capability Celebrate achievements Reward Intrapreneurs