The kick inside: The entrepreneurial mindset

The  kick  inside  The  entrepreneurial  mindset  

Prof.  Mar7n  Kupp  @mar7nkupp  

Established  market  leaders  have  frequently  been  challenged    and  toppled  by  new  players  …  

Innova7on  examples  

Established  market  leader  Industry   New  

market  leader  

PC  industry  in  the  1990s  

Furniture  industry  in  the  1980s  

Mobile  phone  industry  in  the  2010s  

Music  industry  in  the  2000s  

Airline  industry    in  the  1970s  

©  Prof.  Dr.  Harald  Hungenberg   2  

…  and  that  may  well  con7nue  in  the  future  Innova7on  examples  

Established  market  leader  Industry   Poten7al  new  

market  leader  

Publishing  industry?  

Energy  industry?  

Newspaper  /  magazine  industry?  

Educa7on  industry?  

Banking  industry?  

©  Prof.  Dr.  Harald  Hungenberg   3  

All  big  companies  started  as  small  companies  …  

…  but  changed  over  7me!  

We  know  what  it  takes  to  create  the  entrepreneurial  mindset  …  

…  so  why  do  established  companies  so  oXen  struggle?  

 Division  of  labor  Missing  metrics  Dominant  culture  

Division  of  labor  makes  you  efficient  but  hinders  passion  and  commitment  

8  

Start-­‐up   Projects  

Joining   Voluntarily,  people  choose  what  to  work  on  

Directed  by  managers  

Choosing  collabora7on  partners  

Self-­‐determined  

Centrally  organized  in  a  hierarchy  

Decision-­‐making  

Distributed   Central  

How  many  projects?  

1   5-­‐9  

Metrics  for  ge_ng  your  project  going  

For  start-­‐ups   For  projects  

Acquisi7on   users  come  to  site  from  various  channels  

You  start  talking  to  colleagues,  spreading  the  word  (#  of  colleagues  that  listen)  

Ac7va7on   users  enjoy  1st  visit:  "happy”  experience  

First  colleagues  come  to  you  and  ask  you  about  your  project  (#  of  colleagues  that  come  to  you)  

Referral   users  come  back,  visit  site  mul7ple  7mes  

Your  colleagues  start  asking  you  whether  they  might  join  your  team  (ability  to  recruit  a  team)  

Reten7on   users  like  product  enough  to  refer  others  

The  word  spreads  and  senior  management  hears  about  it  (#  of  colleagues  that  refer  your  project  up  the  ladder)  

Revenue   users  conduct  some  mone7za7on  behavior  

You  are  ready  to  get  a  budget  and  resources  

(Based  on  AARRR  metrics  by  Dave  McClure)  

Does  your  culture  …  •  Encourage  new  ideas,  especially  from  below  and  from  

unexpected  sources.  •  Leave  some  slack  for  experimenta7on,  whether  spare  7me  

or  seed  money.  •  Puts  individuals  and  interac7ons  over  processes  and  tools  •  Values  responding  to  change  over  following  a  plan  •  Encourage    customer  collabora7on    •  Support  building  and  tes7ng  minimum  viable  products  •  Ac7vely  encourage  pivots  (when  learning  measure  indicate  

a  pivot)  •  Ajract  and  retain  people  with  an  etreprneurial  mindset    

Based  on:  Kanter,  R.  HBR  Blog,  2013,  The  agile  manifesto,  Ries,  E.  2014  

It  all  seems  obvious  

 Just  let  people    

do  what  they  love    with  people  they  love  ….