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

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

3. 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

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

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

8. 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

9. 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

10. 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

11. 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

12. 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

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

14. 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

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

17. 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

18. 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

19. 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

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

21. How Deal with Your Own Ego?
Corporate Entrepreneurship III

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

23. 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

24. Corporate Entrepreneurship III

25. 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

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