1. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. WORKPLACE ESSENTIALS: CREATIVITY, INNOVATION, AND A SPIRIT OF ENTREPRENEURSHIP Chapter 8 8–1

2. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 1.Why Are Creativity, Innovation, and Entrepreneurship at the Heart of Business?  Leaders must foster an environment that encourages creativity, innovation and an…  Organization-wide Spirit of Entrepreneurship  “Hypercompetition” Introduction 8–2

3. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2.What Is Creativity?  Creativity  process of imagining and developing something new. Creativity Defined 8–3

4. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2.What Is Creativity? Creativity Defined 8–4

5. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2.What Is Creativity?  Convergent Thinking  Analytical  Divergent Thinking  Random Connections Convergent and Divergent Thinking 8–5

6. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Two Streams of Neurological Activity  “Knowledge Domain”  “Processing Mode”  Parts of Brain Help Focus on Creative Tasks  Four Domains of Creativity The Neuroscience of Creativity: Thinking and Feeling 2.What Is Creativity? 8–6

7. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3.How Can We Encourage Creativity at Work?  Culture Where Creativity Is Valuable  Challenge Status Quo  Encouraging Challenging Debate  Build a Diverse Workforce  Support and encourage Risk Taking  Provide a Positive Work Environment Introduction 8–7

8. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 4.What Is Innovation and Why Is It Important?  Pressure to Innovate  Tremendous change in recent years Introduction 8–8  Knowledge  “The Only Meaningful Resource”  Does Not Cause Innovation  Application Results In Innovation Innovation: What It Looks Like in the World of Business

9. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  65% of New Jobs Since 1994  Hire 43% of High-Tech Workers  52% Are Home-Based  31% of Export Value in 2008 The Importance of Small Businesses in Our Economies 99.7% of companies that employ people are small businesses! And over half of private sector employees work for small businesses! 6.What Is Entrepreneurship? 8–9

10. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 6.What Is Entrepreneurship?  Embrace Risk  Take Initiative  Strong Need for Achievement  High Level of Self-esteem  See the “Big Picture”  Energetic Profile of an Entrepreneur 8–10

11. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 8. How Does a New Business Get Started? StageDescription Stage 1: Start-up Focus  good grasp of the business’s financials. Key activities  name must be chosen, physical or virtual locations secured, all the legal issues associated with setting up the venture must be completed, and the initial marketing of the products or services must be carried out. Stage 2: Growth Focus  begins when the company shows a profit. Key activities  more employees may need to be hired, systems of operations and processes become more firmly established, and issues like marketing, ensuring good customer service, strategic human resources, budgeting, purchasing, and upgrading of equipment take precedence. The Life Cycle of a Start-Up Business 8–11

12. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 8. How Does a New Business Get Started? StageDescription Stage 3: Maturity Focus  rapid growth slows down. Activity  technical efficiency and quality control; enhancing production methods, improving marketing efforts, exceeding customers’ expectations, and training employees. Stage 4: Decline or Renewal Focus  organization will become entrepreneurial again, seeking renewal and additional growth, or it may enter into a stage of decline. Activity  dramatically altering business processes and operations, especially if these actions are coupled with a revised strategy and innovations in products or services. Or if in decline  get out of the business, sell to competitors, declare bankruptcy. The Life Cycle of a Start-up Business 8–12

13. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.  Two-thirds of new businesses last at least two years.  After four years, 44% still in existence. How to Avoid Common Pitfalls and Succeed as an Entrepreneur  Key Success Factors  Good leadership  Develop your employees  Remember your business plan  Stay flexible  Manage growth  Marketing matters  Focus on customer service.  Be a good community member 8. How Does a New Business Get Started? 8–13

14. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 10.What Can We All Do to Be More Creative, Innovative and Entrepreneurial?  Think “Outside of the Box” Becoming More Creative Yourself 8–14