Developing an Entrepreneurial Culture. E A simple way to think about culture is that it captures the personality of the company and what it stands for.

Chapter 1

Chapter 10Developing an Entrepreneurial CultureE1IntroductionA simple way to think about culture is that it captures the personality of the company and what it stands for.

Entrepreneurship is not only affected by the culture in a company, it is also a core element of the culture.E2Question 1: What is an organizational culture?EThe Nature of Culture in OrganizationsCulture can be defined as an organizations basic beliefs and assumptions about what the company is about, how its members should behave, and how it defines itself in relation to its external environment

A culture reflects the unique history of a group of people interacting over time, but it also is subject to continuous change as people come and go, and is based on developments in the external environment.E4Finally, cultures are fuzzy. They include elements that may seem contradictory or paradoxical.

Cultures tend to differ along some key dimensions:Positive vs. negativeStrong or weakHomogeneous or heterogeneousConsistent or inconsistentThe Nature of Culture in OrganizationsE5Question 2: What are the six (6) elements of culture? Briefly describe each.EThe Pieces and Parts of CultureValuesthings employees think are worth having or doing; intrinsically desirable

Rules of conductaccepted norms and rules of the company

Vocabularythe language, acronyms, jargon, slang, signs, slogans, songs, etc.

Methodologyperception of how things actually get done in the company

Ritualsrites, ceremonies, and taboos (e.g., recognition ceremonies, retreats, etc.)

Myths and storiesthe history, sagas, myths, and legends of the organizationE7The Pieces and Parts of CultureCultures consist of substance and forms.

Substance refers to shared systems of values, beliefs, and norms.

Forms are the concrete ways in which the substance is manifested in the organization.E8The Pieces and Parts of CultureOrganizational cultures can enhance and inspire us. They can remove us from the boxes and traps in which we exist, making our lives richer and giving meaning to our daily tasks. [This] is the goal of cultural management.E9Core Ideology and the Envisioned FutureCore ideology includes core values, or what the company stands for, as well as core purpose, or the reason the company exists.

Google created a Chief Culture Officer (COO) to ensure a culture of ideas and creativity.At Disney, creativity, dreams, and imagination form some of the core values.E10Question 4: What are eight (8) elements of an entrepreneurial culture? How might each contribute to firm entrepreneurship?

EElements of an Entrepreneurial CulturePeople and empowerment focusedValue creation through innovation and changeAttention to the basicsHands-on managementDoing the right thingFreedom to grow and to failCommitment and personal responsibilityEmphasis on the future and a sense of urgencyE12Question 5: What are the differences between individualism and collectivism?

EExploring a Key Value: IndividualismIndividualism a self-orientation, an emphasis on self-sufficiency and control, the pursuit of individual goals that may or may not be consistent with those of the employees colleagues.

Collectivism the subordination of personal interests to the goals of the larger work group.E14Merits of Individualism vs. Collectivism (Table 10.3)Positive Aspects

Negative AspectsE15Question 6: How do firms balance individualism and collectivism to promote entrepreneurship?

EThe ability to achieve sustained entrepreneurship in a company is dependent upon a balance between the need for individual initiative and the spirit of cooperation and group ownership of innovation.

E17HighLowEntrepreneurialIntensityStrong individualorientationStrong group orcollective org.Ideal balanceE18A Different View of FailureManagers struggle with the concept of failure

There is a tendency within companies to develop zero error cultures as companies strive to meet ever-higher performance standards in a hypercompetitive marketplaceThis results in innovation incompetence, where bold initiatives are avoided and initiatives are pursued only when there is an apparent guarantee of outcomesE19A Different View of FailureThe culture in the entrepreneurial firm celebrates failure.

Fear of failure is a certain recipe for mediocrity.

Failure is perceived employees attach certain costs to itIs it job loss, a smaller pay raise, a missed promotion, a blemished record, loss of autonomy, personal embarrassment, loss of stature, or something else?E20Question 7: How does leadership interact with culture to encourage entrepreneurship?

EAn entrepreneurial leader and an entrepreneurial culture are not completely synonymousIf leader leaves without ENT culture in place, so does the ENT culture

ENT leaders help to encourage and facilitate an ENT culture

Remember, this is a slow processLeadership and CultureE