Ch3 entrepreneurial spiderman[1]

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
CHAPTER 3
Entrepreneurial
Spiderman
PART 1
THE ENTREPRENEURIAL
DNA
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
What entrepreneurs do (decision
making)
Entrepreneurs grasp opportunity by innovating
Doing things differently modifying existing products or services, finding new marketing
strategies such as new routes to market - not
necessarily invention
Finding a market need that is not yet met
Bringing together the resources needed to meet that need.quickly
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Strategy development
Many entrepreneurs develop strategy instinctively and intuitively-gut feel
The adaptive organization makes its decisions in incremental and serial step
For some firms, strategy development may be systematic and deliberate but for many
entrepreneurial firms, it is likely to be
emergent, incremental and adaptive.
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The strategy formulation cycle
CRISIS
CONSOLIDATION
GROWTH
Deliberate
strategy
formulation
Emergent
strategy
formulation
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
How entrepreneurs do it
Entrepreneurs manage through uncertainty by:
Developing informal relationships and networks with customers, staff and suppliers
Create a network more than one (multiple) networks
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Relationship and Networks
Core of entrepreneurial approach to doing business is the development of relationship.
Relationship build into an invaluable network of contact and goodwill.
Trust and respect
Product or service they might ask about reliability or after sales service.
Credibility and capabilities
Education and track record are important
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Michael Dell
Dell is very much a
relationship
orientated company
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The entrepreneurial spiders web
Entrepreneur
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Entrepreneurial Spiders Web
Entrepreneur create relationship and networks between management and staff.
Entrepreneur must seat in the middle of the web to listen any reporting and issues from
all sides.
Tend to be informal; one of direct supervision.
Motivating and effective in an uncertain environment.
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The entrepreneurial spiders web grows
Entrepreneur
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
How entrepreneurs do it
Entrepreneurs manage through uncertainty by:
Developing informal relationships and networks with customers, staff and suppliers
Continuously strategising, developing strategic options underpinned by a strong
vision
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The strategy formulation cycle
CRISIS
CONSOLIDATION
GROWTH
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
How entrepreneurs do it
Entrepreneurs manage through uncertainty by:
Developing informal relationships and networks with customers, staff and suppliers
Continuously strategising, developing strategic options underpinned by a strong
vision
Mitigating risk through information and knowledge
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Michael Dell
There are countless successful
companies that were started with
little more than passion and a good
idea. There are also many that have
failed, for the very same reason.
The difference is that the thriving
companies gathered the knowledge
that gave them the substantial
edge over their competition.
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Size
Large
Small
Young
AgeMature
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
Crisis of:
1: Leadership
1: Creativity
Evolution stages
Revolution
stages
Greiners Five Stage Growth Model
Growth
through:
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Size
Large
Small
Young
AgeMature
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
Crisis of:
1: Leadership
2: Autonomy
1: Creativity
2: Direction Growth
through:
Evolution stages
Revolution
stages
Greiners Five Stage Growth Model
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
STAGE 2 STAGE 3 STAGE 4 STAGE 5
1: Creativity
Size
Large
Small
Young
AgeMature
STAGE 1
Crisis of:
1: Leadership
2: Autonomy
3: Control
2: Direction
3: Delegation
Growth
through:
Evolution stages
Revolution
stages
Greiners Five Stage Growth Model
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Crisis of:
Growth
through:
Size
Large
Small
Young
AgeMature
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
1: Leadership
2: Autonomy
3: Control
4: Red Tape
1: Creativity
2: Direction
3: Delegation
4: Co-ordination
Evolution stages
Revolution
stages
Greiners Five Stage Growth Model
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Growth
through:
Size
Large
Small
Young
AgeMature
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
Crisis of:
1: Leadership
2: Autonomy
3: Control
4: Red Tape
5: ?
1: Creativity
2: Direction
3: Delegation
4: Co-ordination
5:
Collaboration
Evolution stages
Revolution
stages
Greiners Five Stage Growth Model
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Implications for culture
Creative,
innovative
Opportunistic
Achievement
Can-do
Work is fun
Sharing information
and knowledge
Change is normal
Celebrate
success
Measured
risk taking
Belonging,
ownership
Continual
learning
Self-confident
but realistic
Close relationships
with suppliers
Close relationships
with customers
Close relationships
with staff
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Implications for
organisational structure
Structure must encourage:
Opportunity spotting, creativity & innovation
Sharing information, knowledge and learning
Sense of belonging and ownership
Delegation and decentralisation
Development of relationships inside and
outside the organisation
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Implications for management
Need for:
Strong vision, Good communication, Good timing
Light touch and delegation
Positive attitude that encourages self-confidence and self-
efficacy
Continuous strategising at all levels
Incremental adaptive approach to decision-making
Openness that encourages knowledge exchange
Avoidance of short-termism ex cost reduction via retrenchment
vs training
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Wrap Up
Growth through creativity
Crisis of leadership
Growth through direction
Crisis of autonomy
Growth through delegation
Crisis of control
Growth through co-ordination
Crisis of red tape