IIA2014 Corporate Entrepreneurship WS

INNOVATION & CORPORATE VENTURING

© 2014 GOOGOL BUSINESS NAVIGATOR AB

Post Symposium Material

Corporate Entrepreneurship Workshops

Innovation In Action 2014 arranged by

Innovation Pioneers



Part 1. Pre workshop material

• The workshop description

• The structure of the workshops

• A pre-Innovation In Action reflection on Corporate Entrepreneurship

Part 2. Workshop content

• Compiled notes and comments from the two workshops

• Dariush’ slides from the workshop (by request)

Part 3. Post workshop material

• A post-Innovation In Action reflection by Dariush

Content



PART 1



It appears, however, that many companies lack the skills to develop and

implement a strategy and necessary systems for dealing with

intrapreneurship. In fact, a British study reports that only 14% of FTSE-100

companies believe they can develop successful intrapreneurial processes on

their own. In addition, only 50% have identified a clear route to profitability in

new ventures.

The opportunities that lay in embracing intrapreneurship are considerable,

although there are many hurdles on the road to success. Every company is

unique and therefore there are no turnkey solutions.

In this workshop we aim at pointing out factors on how to foster

intrapreneurs and harvest value from this. Experiences, solutions and some

cases to bring home in an inspired and eager mind, now, set to commence

the adoption of corporate entrepreneurship in each organization.

“I hope the workshop participants bring…”

I hope the participants in this workshop bring experiences from their

organizations so that we can iterate around; how we have succeeded, or

not, in engaging the entrepreneurial spirit, re-invigorated it if lost and shown

results hereof.

I hope we can share the insights of true entrepreneurs, as well as those that

have tried to manage these within a corporate system. How in the world do

we form an atmosphere that engage entrepreneurs within?

“Something personal about me..”

I have been part of, in various roles, multiple entrepreneurial endeavors. My

starting point was actually working for a few true entrepreneurs, such as Mr

Jan Stenbeck. Apart from this I am fascinated by samic handicraft which is

actually just one of many passions I have. My current main personal topic, is

further developing the idea of ’Leadership beyond personal winnings’.

“Something about the place I work..”

One of the metrics in Googols strategic portfolio, is to what extent we

engage on an entrepreneurial basis.

Corporate Entrepreneurship

Most organizations face challenges in time to market, cost to market and

delivering actionable creativity. The challenges are multi faced, they are

often cultural, based on hierarchical organizations, and aversion of risk.

Fostering entrepreneurial behavior, methods and approaches within an

organization, demands a culture for intrapreneurs. A possibility for large

organizations is to engage in true Corporate Venturing. Within these

programs internal projects can be separated and externally driven projects

can be integrated. Developing a strategy with balanced risk and efforts,

network, competence and a working structure for this is vital for any

organization engaging in venturing.

In this session we will meet and listen to experienced venture managers,

entrepreneurs and intrapreneurs. We will listen to the challenges they have

struggled with and discuss methods for organizations to engage corporate

entrepreneurship as a means to efficient Innovation. We aim at co-creating a

list of recommendations and methods, as well as suggestions to the

government on how to incentivize corporate entrepreneurship.

The session is facilitated by Dariush Ghatan from Googol, Tim Huse,

Head of Strategy and Innovation at Cavendi and Joachim Cronquist,

Head of Innovation Portfolio Management Googol.

A word from Dariush:The role of the corporate entrepreneur, or in some cases the intrapreneur,

can be crucial to achieving traction and thrust in the various stages of

innovation.

By committing itself to intrapreneurship and by implementing an

intrapreneurial process, companies do not only promote the creation of new

businesses. American studies have shown that intrapreneurial companies

outperform non-intrapreneurial companies within a number of business

critical areas, including sales growth, profitability and market share. By

giving employees the opportunity to voice ideas and participate in the

development of new businesses, a company also strengthens its ability to

attract and retain talented people.



WORKSHOP STRUCTURE

CORPORATE ENTREPRENEURSHIP

CV

Introduction

-Warm up participants

-Reflect on need

-Reflect on entrepreneurship

-Intro to subject

-Examples of structured initiatives

Reflection

-Confirmation of ws results

-Adding insights and examples

-Inspire to further investigation

-Vary the contexts

-Example of agile initiative

Documentation/Presentations

-Summerize each ws module

-Draw conclusions

-Discuss in groups

-Focus on topic

WHY ENGAGE IN C.E.?

Prepare a pitch for chairman on

why C.E. Is needed now.

Find arguments

-Present the pitch

HOW DO WE DO THIS 360?

Find the hurdles we have to

overcome, to enjoy the fruits

present them as tactical tools.

-Present the pitch

WHY ENGAGE IN C.E.?

Prepare a the background for a

pitch on why C.E. Is needed now.

Find arguments

-Discuss the findings

HOW DO WE DO THIS FOCUS?

Focus on one specifik major

hurdle. Explore and create

solutions to this.

-Present the pitch

Gro

up 1

Gro

up 2



It is not the Big that will eat the Small. It is the fast that will (b)eat the

slow!*

The Corporate Entrepreneurship workshops are crammed-packed, the

interest for this subject has definitely been super hot. Why is that?

Do we now see how entrepreneurship can reinvigorate and spike certain

behavior and be a source of long-lacked energy? Which characteristics does

the entrepreneur carry that we need to “successfully” innovate our

businesses, processes, products and lives?

What frightens us when we think of the intra organizational entrepreneur, or

the intrapreneurs as she can also be called? What do we need in terms of

structure and processes to support these people?

Is it necessary “people”? Or can it be ways of organizing our teams?

As you eagerly study the multitude of apps, mails, tweets and news on your

phone on your way to Innovation In Action; Give it a thought.

In which ways do I function as an entrepreneur? How could this behavior

benefit my organization, whether small or big?

Have we reached lines end to acquisitions of small tech? Will we see a

continued journey of entrepreneurs choosing to take their technologies to

large scale success, finding them more hand-over ready as the grow slow?

Will entrepreneurs choose to take the escape route and refine yet another

business idea of their own, rather than incorporating their freedom to

operate?

If you would like, drop me a quick note on any thoughts you have, based on

these thoughts.

*Originally the Rupert Murdoch quote is claimed to read “Big will not beat small anymore. It

will be the fast beating the slow”



PART 2



Corporate Entrepreneurship Workshop

Innovation in Action 18-19 November

Googol Business Navigator

Innovation in Action

Corporate Entrepreneurship WorkshopCompiled notes and comments from the workshops



1. Why is Corporate Entrepreneurship important?

2. How to engage in Corporate Entrepreneurship?

1. What are some challenges with Corporate Entrepreneurship?



Why is Corporate Entrepreneurship important?



Workshop Nr 1:1 & 2:1

Why is Corporate Entrepreneurship important?

• It lets us focus on opportunities, when there is a general business focus on sustaining• It separates risk in risk averse organizations• Customer needs and behaviors changes• Markets change rapidly, entrepreneurial behavior leverages agility• A better way to fence off competition

1Corporate Entrepreneurship is necessary since:

• Achieve growth, increase sales, create new revenue streams, decrease costs, increase profits• Decrease time-to-market, reduce lead times, become more efficient• Create energy and passion• Manage risk• Improve brand value and market reputation• Reduce bureaucracy• Retain/increase attractiveness as an employer, retain talents • Retain customers• Maintain/increase competitiveness• Keep lifecycle alive, re-invent ourselves• Make bigger changes happen, find new opportunities• Push ourselves as a company• Create business value from ideas• Break down internal silos

2We want to engage in Corporate Entrepreneurship in order to: Get traction in the portfolio

It doesn’t make sense to steer if you stand still!



How to engage in Corporate Entrepreneurship



Workshop Nr 1:2

How to engage in Corporate Entrepreneurship?

• Customer centricity• Utilize the agility, power of “troublemakers” in a positive

way• Be proactive rather than reactive

2How do we capture new practices and trends?

• Engage top leaders, mid-leaders, employees• Empower all employees• Facilitate knowledge sharing• Connect people and ideas• Bottom-up approach• Physical places to meet and inspire• Align work processes• Align objectives• Align values• Align vision • Engaging vision• Set and manage expectations• Encourage and accept failure• Encourage risk-taking• Incentives, rewards• Celebrate failures• Sales bonuses only on “new products”• Manage risks and uncertainty - uncertainty scares the sh.t out of us!• Leadership as part of the culture

1How?

Act during full lifecycle!

Kill your darlings! Focus!

Bring in new!

Dare!

Involve people, talents!

Believe in people!

3-sions:

vi-sion, mis-sion, pas-sion

>Profitability, >margins on new services/products, >addressable market, budget allocation, new market (not grow current), manageable risk

3What effect shall we expect from CE?



Which challenges with Corporate Entrepreneurship, need to be met?



Challenges with Corporate Entrepreneurship (1/4)

Challenge 1How to persuade top management to engage in Corporate Entrepreneurship?

“Make it specific”• Show short-term effects also• Place financial returns/metrics• Address and accept accountability

“Get buy-in for the idea”• Make tangible/prototype• Customer need/pain point• Common language/models

“The plan is…”• Be ready to address hurdles• Have a plan ready• Show similar cases

“The time to act is NOW”• Instill sense of urgency• Threats/case examples• Visualize new market entries

“Isolate risk”• Keep separate from core business• Hedge against downside• Limited budgets will reach further

“Use existing assets & capabilities & promote failures”• Embrace failures as low cost

probing“Create option value”

“Get good PR, CE strengthens the brand”

Question from audience:

How do you convince the management of low risk? Isn’t innovation supposed to be risky?

Selling Points

Workshop Nr 2:2



Workshop Nr 2:2

Challenge 2How to manage portfolio allocation?

– Do or Die –

“Convince the management that they need to engage in corporate entrepreneurship while doing other stuff too, otherwise they will die. If they don’t listen to you – go to another company. Some companies deserve to die.”

Comment from audience:

“A good way to do this [leave a

company] is through some ‘f..k-you-

money’ – save up some money so you

can survive without a job for a period.”

“Clarify the roles within the firm, so that

each area within the portfolio gets enough

attention. Either split the portfolio within

different employees or split each

employee’s role into different

responsibilities within the portfolio.”


Workshop Nr 2:2



Challenge 3How to manage conflicts between old and new products (cannibalization)?

“It’s like driving on a highway. Cars drive out of the highway, and if there are no highway entrances, there will be a shortage of cars driving on the highway. So, either you ‘cannibalize’ in a good way or you

get beaten by your competition.”

• Cannibalization is a necessity in order to be competitive and to not die out.

• You need to motivate the company to not be afraid of creating new products just because of possible cannibalization.

• You need to focus also on the long-term pipeline.

• You need to not only accept new products, but also be able to let go of old products.

• Overcome the individual’s fear of change. Motivate. Involve. Reward.

• Visualize the reality.


Workshop Nr 2:2



Workshop Nr 2:2

Challenge 4How to create a sense of urgency and anchor the need to innovate within the management?

• By real-life examples: trend research, customer analyses, prototypes, pilots, opportunity analyses, examples from other companies, visit a competitor, visit customers, live in your customers’ shoes

• Convince them with rational analyses, but also through talking to their emotions by making them feel what their customers are feeling

• Influence all stakeholders relevant for the innovation, also people lower in the organization

• Show internal examples to show that we can

• Be prepared to do it over and over again

• Connect the message with the ‘why’ of the company

• Bring in an external “objective” view

• Who needs to anchor it? Who does the management trust?

Alternative 2: Paint the picture of opportunities

• Growth

• Satisfaction within firm

• Attractiveness within firm

Alternative 1: Scare them around our current strategy and the road we are heading

• Becoming irrelevant

• Missing opportunities

HOW?




Its all about Opportunities

Innovation In Action 2014

Reflections for the Corporate Entrepreneurship workshop





IT’S NOT THE BIG THAT WILL EAT THE SMALL

IT’S THE FAST THAT WILL (B)EAT THE SLOW!



Business

Development

Agile team

Spin-out

Spin-off

InternalInternalInternalInternal External

Aquisition Periscope JV



The Enabler

(Google)

The Producer

(Cargill)

InternalInternalInternalDiffused Focused

The Opportunist

(Zimmer)

The Advocate

(DuPont)

Ad

Ho

cD

edic

ated

Reso

urce

Aut

hor

ity

Organizational Ownership

MITSloan

Corporate Entrepreneurship Matrix



WHERE

HOW

WHO

LISTEN AND TELL

UNITE

WHY

WHAT

FROM GOOGOL INNOVATION CAPABILITY CONFIGURATION

MODEL

COMMENT:”What” is best answered

by a portfolio approach

STRATEGY

• Define current status and reason

• Formalize starting strategy

• Define types of innovation

• Define goals, guides and

resoures

STRUCTURE

• Decide organizational placing

• Define and allocate resources

• Form supporting governance

METHODS, PROCESSES AND

TOOLS

• Unstructure what can be

• Infuse courage and curiosity

• Define functional processes

• Choose tools

• Define metrics

ROLES AND CULTURE

• Set and allow actionable

roles

• Engage staff

• Eliminate cultural hurdles

• Free the leader

• Educate the staff

• Celebrate everythingCOMMUNICATION

• Hear what customers say

• Communicate with the future

• Formalize feedback loops

• Clarify goals and targets

• Dare to stick out

ECO-SYSTEM

• Identify collaborations

• Network

• Involve customers and

prototype

• Evaluate M&A,

Periscoping and Spin-

ins

• Share







COMMENT:”The Innovation Void” is

expressed as an inability

to go from ideas to

projects, can be solved by

one of the entrepreneurial

approaches in the

venturing matrix.



COMMENT:The dilemma between

resource allocation and

need, again suggesting

that visualizing the

strategy in an portfolio

approach,can help.



70 % 8 %

InternalInternalInternalInternal External

10 % 2 %

COMMENT:Yes, we have left 10 % for

slack.. When balancing

this portfolio



COMMENT:Agility, speed and

courage will be leading

starsi n meeting

tomorrows business

models.





Dariush Ghatan+46-70-606 86 96

[email protected]



PART 3



Entrepreneurial behavior isn’t necessary achieved with large scale programs. Infuse some entrepreneurship

by autonomous teams, projects as well as individual engagements. Compare the 8 hour- USD 500 budget to

the large scale Corporate Venturing approach.

Let results lead to results. Teams that achieve results based on entrepreneurial endeavors and behavior

shall retain financial results to grow their program beyond initial budget. That creates drive. Form the

structure and organizational geography to allow this. Sometimes, below the surface is better than anywhere

else.

Entrepreneurs look at problems as opportunities. Opportunities are core to development. Engaging in risk is

part of this. Look for the right way to calm those that need to be, and find passion thru those that embrace

this.

We innovate to be better, not (only) to grow. Being better can encompass growth, profitability, quality as well

as reasons beyond personal winnings. To engage here, passion is needed. Entrepreneurs are passionate.

Management support and engagement is vital to keep these going. Budget for time, it will pay off.

Take a portfolio approach to what you engage in, as well as which resources are invested.

5 Post workshop reflections



• View the videos made at the workshop here

• Articles influencing this session, examples

– The Four Models of Corporate Entrepreneurship, MITSLOAN Management Review SMR266, 2007

by Wolcott and Lippitz

– A Paradigm of Entrepreneurship: Entrepreneurial Management, Wiley-Blackwell, 2012 by

Stevensson and Jarillo

– The Paradox of Corporate Entrepreneurship, Strategy+Business, 2003 by Birkinshaw

– Corporate Venturing, Harvard Business Review, 2013 by Lerner

– Building a Growth Factory; Four Components that Make Innovation Repeatable; Harvard Business

Review, 2012 by Anthony and Duncan

– Build an Innovation Engine in 90 Days, Harvard Business Review, 2014 by Anthony and Duncan

• Papers by us at Googol

Further reading and viewing

http://www.innovationpioneers.net/corporate-entrepreneurship/

http://sloanreview.mit.edu/article/the-four-models-of-corporate-entrepreneurship/

http://link.springer.com/chapter/10.1007/978-3-540-48543-8_7

http://www.strategy-business.com/article/8276?pg=all

https://hbr.org/2013/10/corporate-venturing/ar/1

https://hbr.org/product/building-a-growth-factory-four-components-that-mak/an/11714E-KND-ENG

https://hbr.org/2014/12/build-an-innovation-engine-in-90-days

http://www.googol.se/papers/

Date post:	12-Jul-2015
Category:	Small Business & Entrepreneurship
Upload:	innovation-pioneers
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IIA2014 Corporate Entrepreneurship WS

Small Business & Entrepreneurship