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The Entrepreneurial Manager

JADE Spring Conference
Olivier Witmeur
March 7th, 2014
2

Desired Outcomes of the Workshop

• Who is the entrepreneur?
• What are the differences
between entrepreneur
and manager?
• Does it matter?

07-03-2014

1. Why entrepreneurship
matters
2. About entrepreneurs
3. Introduction to
effectuation
4. Case study: Wafles and
Dinges
5. Introduction to
intrapreneurship
6. Conclusion

• What makes
entrepreneurs
entrepreneurial
(Sarasvathy)

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
3

Olivier Witmeur (Belgian, 46)
•

A real passion for entrepreneurship education and entrepreneurs.
• Student entrepreneurs: 2x
• Full time entrepreneur: once, in a team of 5
• Coach: 500+ projects over the last 20 years
• (Advisory) Board member in multiple new ventures
• Policy making: 2x
• PhD in entrepreneurship in 2008
• … never as an investor

•

My wife (as Colombo), no kids, one dog (Vicky).

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
WHY ENTREPRENEURSHIP MATTERS
5

Did you know one of the largest and most profitable businesses during
the late 1800s and early 1900s was ice harvesting?

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
6

Jump to the next curve.

2

1
Rule #1
The dominant players on curve #1 are
not likely to jump to the curve #2…
Temps

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
7

Again!

Today’s businesses, especially the large ones, simply will not survive in this period of rapid
change and innovation unless they acquire entrepreneurial competences.
Peter Drucker
1985 (!)

2005

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
8

Strategy  Entrepreneurial Orientation
“An entrepreneurial firm is one that engages in product-market
innovation, undertakes somewhat risky ventures, and is first to come up
with ‘proactive’ innovations, beating competitors to the punch.
A non-entrepreneurial firm is one that innovates very little, is highly risk
averse, and imitates the moves of competitors instead of leading the way.”
•
Danny MILLER
(Canada)
•

Entrepreneurial Orientation (EO) =
– Risk Taking
– Proactiveness
– Innovativeness
EO  Performance
(The relation is stronger in turbulent environments)

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
9

Towards ‘Entrepreneurism’
• Y= f ( L, C )

… Capitalism and Socialism

• Y = f ( L, C, K )

… The Knowledge Economy

• Y = f ( L, C, K, E )

... The Entrepreneurial Society?

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
10

Global Entrepreneurship Monitor
Total Entrepreneurial Activity Level

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
11

How To Navigate In Turbulent Times?

V
U

UNCERTAINTY
Lack of predictability and prospects for
surprises.

C

COMPLEXITY
Multiplex of forces, confounding of issues
and causes-and-effects confusion.

A

07-03-2014

VOLATILITY
Nature, dynamics and speed of change.

AMBIGUITY
Haziness of reality, potential for misreads,
and the mixed meanings of conditions.

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
ABOUT ENTREPRENEURS
13

Different views on the entrepreneur
1.
2.
3.
4.

As a revolutionary  ‘Entrepreneurial leadership’
As a manager  ‘Entrepreneurial management’
As a salesman
As a team player  Entrepreneurial team

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
14

Traits approach: Classical variables

Need for
achievement

Need for achievement (N-Ach) refers to an individual's desire for
significant accomplishment, mastering of skills, control, or high
standards.

Locus of control

Locus of control refers to how much individuals believe they can
control events that affect them.

Tolerance for
ambiguity

Ambiguity tolerance is the ability to perceive ambiguity in
information and behavior in a neutral and open way

Self efficacy

Self-efficacy is the extent or strength of one's belief in one's own
ability to complete tasks and reach goals

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
About Entrepreneurs (a personal view)
Passion &
Values

Tolerance for
Ambiguity

Commitment
& Courage
07-03-2014

Knowledge &
Expertise

Network &
Social Capital

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur

15
ELEMENTS OF ENTREPRENEURIAL LOGIC:
INTRODUCTION TO EFFECTUATION
18

Managerial Approach based on optimization
Selecting between given means to achieve a predefined goal

Resource 1
Resource 2
Given
Goal

Resource 3
Resource 4
Resource 5

How to optimize
the use of the
resources?

Typical tools & techniques: project management, leadership, controlling,
quantitative methods…
07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
19

A more creative approach based on planning
Generating new means to achieve pre-determined goals

Resource 1
Resource 2
Given
Goals

Resource 3
(needed)
(needed)

How to write a ‘case’
or a plan to ask for
more resources.

Typical tools & techniques: strategic and financial planning

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
20

Entrepreneurial Thinking
Imagining possible new ends using a given set of means

Opportunity Space
Possible goal 1

Resource 1
Resource 2

Possible goal 2

Resource 3

Possible goal 3

Resource 4

…

Resource 5
How to exploit one
opportunity inside the
opportunity space?

…

Typical tools & techniques: co-creation, creativity, enrolment, lean
entrepreneurship, bootstrapping….

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
21

Introducing Effectuation: The logic of expert entrepreneurs.

The word effectual (entrepreneurial approach) is the inverse of
causal (managerial approach).

In general, in MBA programs across the world, students are taught
causal or predictive reasoning in every functional area of business.
Saras Sarasvathy
India

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
22

Causation vs. Effectuation
Causation

Need to
manage
the causes

Effects are
predicted

•
•
•
•

Effectuation (Cre-Action)

Planned approach
Top-Down
Managerial logic
Prediction based: To the extent we
can predict the future, we can control
it.
 For predictable situations

07-03-2014

Causes are
given

•
•
•
•

Need to
manage
the effects

Emergent approach
Bottom-up
Entrepreneurial logic
Control based: To the extent we can
control the future, we don’t need to
predict it.
 For uncertain situations

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
23

Principle #1: Bird in Hand
Start with who you are, what you know and whom you know
… Not with pre-set/given goals (based on prediction)

•

Typical entrepreneurial resources:
– Expertize, skills…
– Social capital
– Psychological capital: hope, optimism, self efficacy and resilience

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
24

Principle #2: Affordable loss
Invest what you can afford to lose (extreme case = 0€)
… Not expected (risk adjusted) return

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
25

Principle #3: Crazy Quilt
Build a network of self-selected stakeholders
… Not competitive analysis and transactional relationships with first-best partners.

Committed
stakeholders
network
Co-Creation

Customers
Suppliers
Channels
Financial partners
Employees
Sponsors
…

Crazy quilt, not puzzle.

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
26

Principle #4: Lemonade principle
Embrace and leverage surprises (they can present new opportunities)
…Not avoid them

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
Nils Bergvist

Question:
• What would you do?

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur

27
28

About Nils
• Swedish
• Environmental engineer
• Worked 8 years in the mining industry in
Kiruna (in Northern Sweden)
• Passion for wildlife and sports

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
29

Ice Hotel

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
30

Principle #5: Pilot-in-the-plane
The future comes from what people do
… No inevitable trends

 Control vs Plan

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
31

The Dynamics of the Entrepreneurial Network
Iterative opportunity
co-construction

Who I am?
What I can do?
Whom I know?

My Goals?

My affordable
loss?

Additional
resources
Who may be
involved?

Dead end
The venture grows
step by step.

New Goals

Multiple techniques help to deal with these cycles: Design Thinking,
Lean Startup, Business Model Generation, Staged Financing…
To be continued.

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
32

Managerial vs. Entrepreneurial Thinking (stylized facts)
High

Expert
Entrepreneurs
Angels
Experienced
VCs

Effectual

Bankers
Novice
entrepreneurs

Novice
VCs
Corporate
Managers

Low

Low

07-03-2014

Causal

High

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
33

From Causation to Effectuation…and vice-versa
Causal

LOGIC

Novice
entrepreneur

Moderating
effect of
resources

Large
firm

Entrepreneurs
do not always
manage to
bridge this gap

Shift in logic
necessitated by
firm growth

Start-up
firm

Expert
entrepreneur

Effectual
TIME AND EXPERIENCE

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
Wafels & Dinges

Questions:
• What would you do next?
• What is your logic?

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur

34
Don’t wait/look for the
perfect opportunity.
Just start!
INTRODUCTION TO INTRAPRENEURSHIP
37

Entrepreneurs and Intrapreneurs

Owner-Manager
in Small Firms

Managers
in Large Firms

Lifestyle
Entrepreneurs
Entrepreneurs

Intrapreneurs

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
38

Entrepreneurs vs Intrapreneurs
ENTREPRENEUR

INTRAPRENEUR

Ownership

Yes

No (employee)

Decision power

Unlimited as long as
shareholders agree

Hierarchy

Incentive

Overall

Limited: Bonus, SOP…

Risk

Large, i.e. may include personal
assets

Job reputation

Strategic Freedom

Full

To be aligned with the corporate
agenda

Type of activity

Ex-nihilo creation

Strat with existing organizational
support

Sponsors

Stakeholders

Corporate Management

• Adapted from Basso, 2004

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
39

Corporate Entrepreneurship Challenges
•
•
•

Pace of change is accelerating  Need to renew
Core vs non-core activities
Breakthrough innovation

•

STRATEGY
(Vision)

Entrepreneurial culture / values
Recruit, Develop & Retain entrepreneurial people
Leadership skills

•
•
•

CULTURE

Develop an organization that is entrepreneurship friendly

ORGANIZATION
(Tactics)

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
40

Entrepreneurial Values and Behaviours
•

Adapted from Burns, 2008
Long term
impacts
Creatity
Innovation

Change is
normal

Trials & Errors
Learn from
mistakes

‘Can do’

Opportunistic
Optimism

Network and
Sharing

Self
confidence
Multidisciplinarity

07-03-2014

‘Work is Fun’
Team

Celebrate
Success

Achievement

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
41

Organizational framework for Internal Venturing
Strategic Importance
Very important

Not important

Unrelated
Operational
relatedness

Uncertain

Special BU

Special BU

Spin-off

Partly related

New department

New department

Contracting

Strongly related

Direct Integration

New department

Contracting

Adapted from Burns, 2008

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
CONCLUSION
43

Traditional vs Entrepreneurial Management
(Adapted from H. Stevenson)
ENTREPRENEURIAL

TRADITIONAL

Strategic
Orientation

Driven by perception of
opportunity

Driven by resources currently
controlled

Commitment to
opportunity

Revolutionary with short
duration

Evolutionary of long duration

Commitment of
resources

Multistaged with minimal
exposure at each stage

Single-staged with complete
commitment upon decision

Control of
resources

Episodic use of rent of required
resources

Ownership or employment of
required resources

Management
structure

Flat with multiple informal
networks

Formalized hierarchy

Reward philosophy

Value-driven
Performance-based
Team-oriented

Security-driven
Resource-based
Promotion-oriented

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
44

Initial
discovery

MANAGEMENT

ENTREPRENEURSHIP

Entrepreneurship and Management

Opportunity
refinement
Discovery process

Market
making

Resource
acquisition

Co-ordination
(New) coof old
ordination of
(new) resources resources/ongoing activity

Exploitation process
07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
The test of a first-rate intelligence is the
ability to hold two opposed ideas in the
mind at the same time, and still retain the
ability to function.
F. Scott Fitzgerald
46

Entrepreneur vs. Manager is the wrong question.

Act like Lionel Messi; ie be
good at everything and
know what tool/logic to
use at the right time

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
47

Every morning in Africa, a gazelle wakes
up.
It knows it must run faster than the fastest
lion or it will be killed.

Every morning a lion wakes up.
It knows it must run faster than the
slowest gazelle or it will starve to death.

It doesn’t matter whether you are a lion or a gazelle.
When the sun comes up, you better start running.
Thomas L. Friedman in “The World Is Flat”
07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
48

Never Stop Wondering and Asking

olivier@solvayentrepreneurs.be

T. +32.2.650.41.60 – M. +32.475.68.62.50 if important and urgent
For visitors: 48 avenue F. Roosevelt (Janson Building) – Room J1-117, 1050 Brussels
Postal address: 50 avenue F. Roosevelt – CP 141, 1050 Brussels, Belgium
07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
BACK UP
WHAT IS ENTREPRENEURSHIP?
51

Definition 1: The HBS working definition

The pursuit of opportunity beyond the resources you currently control.

H. Stevenson
USA

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
52

Definition 2: The classical academic definition
We define the field of entrepreneurship as the scholarly examination of how, by whom and
with what effects opportunities to create future goods and services are discovered, evaluated
and exploited.
Academy of Management Review, 2000, vol. 25, n°1, 217-226

S. Shane

07-03-2014

S. Venkataraman

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
53

Adapted from C. Bruyat (1993) & A. Fayolle

Definition 3: Degree of entrepreneurship?
New
to founders
High tech
& Social
start-ups

Take-over
Buy Out

Change

Ch. Bruyat A. Fayolle
Franchisee
Shops
Corporate
Spin-offs
Lawyers,
Doctors,
….

Innovation

07-03-2014

New to
market

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
54

Definition 4: A classical definition
Thinking and acting =
There is a “method”

Central role of the
opportunity
(but found or made?)

A way of thinking and acting that is opportunity obsessed,
holistic in approach & leadership balanced
for the purpose of value creation
Take all aspects into
consideration

Need to be managed
There are best practices
Value for the stakeholders, i.e.
founders, team, investors,
customers, society…
J. Timmons
USA

07-03-2014

JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur

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The Entrepreneurial Manager - JADE - 7/3/14

  • 1. The Entrepreneurial Manager JADE Spring Conference Olivier Witmeur March 7th, 2014
  • 2. 2 Desired Outcomes of the Workshop • Who is the entrepreneur? • What are the differences between entrepreneur and manager? • Does it matter? 07-03-2014 1. Why entrepreneurship matters 2. About entrepreneurs 3. Introduction to effectuation 4. Case study: Wafles and Dinges 5. Introduction to intrapreneurship 6. Conclusion • What makes entrepreneurs entrepreneurial (Sarasvathy) JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 3. 3 Olivier Witmeur (Belgian, 46) • A real passion for entrepreneurship education and entrepreneurs. • Student entrepreneurs: 2x • Full time entrepreneur: once, in a team of 5 • Coach: 500+ projects over the last 20 years • (Advisory) Board member in multiple new ventures • Policy making: 2x • PhD in entrepreneurship in 2008 • … never as an investor • My wife (as Colombo), no kids, one dog (Vicky). 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 5. 5 Did you know one of the largest and most profitable businesses during the late 1800s and early 1900s was ice harvesting? 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 6. 6 Jump to the next curve. 2 1 Rule #1 The dominant players on curve #1 are not likely to jump to the curve #2… Temps 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 7. 7 Again! Today’s businesses, especially the large ones, simply will not survive in this period of rapid change and innovation unless they acquire entrepreneurial competences. Peter Drucker 1985 (!) 2005 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 8. 8 Strategy  Entrepreneurial Orientation “An entrepreneurial firm is one that engages in product-market innovation, undertakes somewhat risky ventures, and is first to come up with ‘proactive’ innovations, beating competitors to the punch. A non-entrepreneurial firm is one that innovates very little, is highly risk averse, and imitates the moves of competitors instead of leading the way.” • Danny MILLER (Canada) • Entrepreneurial Orientation (EO) = – Risk Taking – Proactiveness – Innovativeness EO  Performance (The relation is stronger in turbulent environments) 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 9. 9 Towards ‘Entrepreneurism’ • Y= f ( L, C ) … Capitalism and Socialism • Y = f ( L, C, K ) … The Knowledge Economy • Y = f ( L, C, K, E ) ... The Entrepreneurial Society? 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 10. 10 Global Entrepreneurship Monitor Total Entrepreneurial Activity Level 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 11. 11 How To Navigate In Turbulent Times? V U UNCERTAINTY Lack of predictability and prospects for surprises. C COMPLEXITY Multiplex of forces, confounding of issues and causes-and-effects confusion. A 07-03-2014 VOLATILITY Nature, dynamics and speed of change. AMBIGUITY Haziness of reality, potential for misreads, and the mixed meanings of conditions. JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 13. 13 Different views on the entrepreneur 1. 2. 3. 4. As a revolutionary  ‘Entrepreneurial leadership’ As a manager  ‘Entrepreneurial management’ As a salesman As a team player  Entrepreneurial team 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 14. 14 Traits approach: Classical variables Need for achievement Need for achievement (N-Ach) refers to an individual's desire for significant accomplishment, mastering of skills, control, or high standards. Locus of control Locus of control refers to how much individuals believe they can control events that affect them. Tolerance for ambiguity Ambiguity tolerance is the ability to perceive ambiguity in information and behavior in a neutral and open way Self efficacy Self-efficacy is the extent or strength of one's belief in one's own ability to complete tasks and reach goals 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 15. About Entrepreneurs (a personal view) Passion & Values Tolerance for Ambiguity Commitment & Courage 07-03-2014 Knowledge & Expertise Network & Social Capital JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur 15
  • 16.
  • 17. ELEMENTS OF ENTREPRENEURIAL LOGIC: INTRODUCTION TO EFFECTUATION
  • 18. 18 Managerial Approach based on optimization Selecting between given means to achieve a predefined goal Resource 1 Resource 2 Given Goal Resource 3 Resource 4 Resource 5 How to optimize the use of the resources? Typical tools & techniques: project management, leadership, controlling, quantitative methods… 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 19. 19 A more creative approach based on planning Generating new means to achieve pre-determined goals Resource 1 Resource 2 Given Goals Resource 3 (needed) (needed) How to write a ‘case’ or a plan to ask for more resources. Typical tools & techniques: strategic and financial planning 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 20. 20 Entrepreneurial Thinking Imagining possible new ends using a given set of means Opportunity Space Possible goal 1 Resource 1 Resource 2 Possible goal 2 Resource 3 Possible goal 3 Resource 4 … Resource 5 How to exploit one opportunity inside the opportunity space? … Typical tools & techniques: co-creation, creativity, enrolment, lean entrepreneurship, bootstrapping…. 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 21. 21 Introducing Effectuation: The logic of expert entrepreneurs. The word effectual (entrepreneurial approach) is the inverse of causal (managerial approach). In general, in MBA programs across the world, students are taught causal or predictive reasoning in every functional area of business. Saras Sarasvathy India 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 22. 22 Causation vs. Effectuation Causation Need to manage the causes Effects are predicted • • • • Effectuation (Cre-Action) Planned approach Top-Down Managerial logic Prediction based: To the extent we can predict the future, we can control it.  For predictable situations 07-03-2014 Causes are given • • • • Need to manage the effects Emergent approach Bottom-up Entrepreneurial logic Control based: To the extent we can control the future, we don’t need to predict it.  For uncertain situations JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 23. 23 Principle #1: Bird in Hand Start with who you are, what you know and whom you know … Not with pre-set/given goals (based on prediction) • Typical entrepreneurial resources: – Expertize, skills… – Social capital – Psychological capital: hope, optimism, self efficacy and resilience 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 24. 24 Principle #2: Affordable loss Invest what you can afford to lose (extreme case = 0€) … Not expected (risk adjusted) return 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 25. 25 Principle #3: Crazy Quilt Build a network of self-selected stakeholders … Not competitive analysis and transactional relationships with first-best partners. Committed stakeholders network Co-Creation Customers Suppliers Channels Financial partners Employees Sponsors … Crazy quilt, not puzzle. 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 26. 26 Principle #4: Lemonade principle Embrace and leverage surprises (they can present new opportunities) …Not avoid them 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 27. Nils Bergvist Question: • What would you do? 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur 27
  • 28. 28 About Nils • Swedish • Environmental engineer • Worked 8 years in the mining industry in Kiruna (in Northern Sweden) • Passion for wildlife and sports 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 29. 29 Ice Hotel 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 30. 30 Principle #5: Pilot-in-the-plane The future comes from what people do … No inevitable trends  Control vs Plan 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 31. 31 The Dynamics of the Entrepreneurial Network Iterative opportunity co-construction Who I am? What I can do? Whom I know? My Goals? My affordable loss? Additional resources Who may be involved? Dead end The venture grows step by step. New Goals Multiple techniques help to deal with these cycles: Design Thinking, Lean Startup, Business Model Generation, Staged Financing… To be continued. 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 32. 32 Managerial vs. Entrepreneurial Thinking (stylized facts) High Expert Entrepreneurs Angels Experienced VCs Effectual Bankers Novice entrepreneurs Novice VCs Corporate Managers Low Low 07-03-2014 Causal High JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 33. 33 From Causation to Effectuation…and vice-versa Causal LOGIC Novice entrepreneur Moderating effect of resources Large firm Entrepreneurs do not always manage to bridge this gap Shift in logic necessitated by firm growth Start-up firm Expert entrepreneur Effectual TIME AND EXPERIENCE 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 34. Wafels & Dinges Questions: • What would you do next? • What is your logic? 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur 34
  • 35. Don’t wait/look for the perfect opportunity. Just start!
  • 37. 37 Entrepreneurs and Intrapreneurs Owner-Manager in Small Firms Managers in Large Firms Lifestyle Entrepreneurs Entrepreneurs Intrapreneurs 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 38. 38 Entrepreneurs vs Intrapreneurs ENTREPRENEUR INTRAPRENEUR Ownership Yes No (employee) Decision power Unlimited as long as shareholders agree Hierarchy Incentive Overall Limited: Bonus, SOP… Risk Large, i.e. may include personal assets Job reputation Strategic Freedom Full To be aligned with the corporate agenda Type of activity Ex-nihilo creation Strat with existing organizational support Sponsors Stakeholders Corporate Management • Adapted from Basso, 2004 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 39. 39 Corporate Entrepreneurship Challenges • • • Pace of change is accelerating  Need to renew Core vs non-core activities Breakthrough innovation • STRATEGY (Vision) Entrepreneurial culture / values Recruit, Develop & Retain entrepreneurial people Leadership skills • • • CULTURE Develop an organization that is entrepreneurship friendly ORGANIZATION (Tactics) 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 40. 40 Entrepreneurial Values and Behaviours • Adapted from Burns, 2008 Long term impacts Creatity Innovation Change is normal Trials & Errors Learn from mistakes ‘Can do’ Opportunistic Optimism Network and Sharing Self confidence Multidisciplinarity 07-03-2014 ‘Work is Fun’ Team Celebrate Success Achievement JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 41. 41 Organizational framework for Internal Venturing Strategic Importance Very important Not important Unrelated Operational relatedness Uncertain Special BU Special BU Spin-off Partly related New department New department Contracting Strongly related Direct Integration New department Contracting Adapted from Burns, 2008 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 43. 43 Traditional vs Entrepreneurial Management (Adapted from H. Stevenson) ENTREPRENEURIAL TRADITIONAL Strategic Orientation Driven by perception of opportunity Driven by resources currently controlled Commitment to opportunity Revolutionary with short duration Evolutionary of long duration Commitment of resources Multistaged with minimal exposure at each stage Single-staged with complete commitment upon decision Control of resources Episodic use of rent of required resources Ownership or employment of required resources Management structure Flat with multiple informal networks Formalized hierarchy Reward philosophy Value-driven Performance-based Team-oriented Security-driven Resource-based Promotion-oriented 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 44. 44 Initial discovery MANAGEMENT ENTREPRENEURSHIP Entrepreneurship and Management Opportunity refinement Discovery process Market making Resource acquisition Co-ordination (New) coof old ordination of (new) resources resources/ongoing activity Exploitation process 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 45. The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function. F. Scott Fitzgerald
  • 46. 46 Entrepreneur vs. Manager is the wrong question. Act like Lionel Messi; ie be good at everything and know what tool/logic to use at the right time 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 47. 47 Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must run faster than the slowest gazelle or it will starve to death. It doesn’t matter whether you are a lion or a gazelle. When the sun comes up, you better start running. Thomas L. Friedman in “The World Is Flat” 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 48. 48 Never Stop Wondering and Asking olivier@solvayentrepreneurs.be T. +32.2.650.41.60 – M. +32.475.68.62.50 if important and urgent For visitors: 48 avenue F. Roosevelt (Janson Building) – Room J1-117, 1050 Brussels Postal address: 50 avenue F. Roosevelt – CP 141, 1050 Brussels, Belgium 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 51. 51 Definition 1: The HBS working definition The pursuit of opportunity beyond the resources you currently control. H. Stevenson USA 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 52. 52 Definition 2: The classical academic definition We define the field of entrepreneurship as the scholarly examination of how, by whom and with what effects opportunities to create future goods and services are discovered, evaluated and exploited. Academy of Management Review, 2000, vol. 25, n°1, 217-226 S. Shane 07-03-2014 S. Venkataraman JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 53. 53 Adapted from C. Bruyat (1993) & A. Fayolle Definition 3: Degree of entrepreneurship? New to founders High tech & Social start-ups Take-over Buy Out Change Ch. Bruyat A. Fayolle Franchisee Shops Corporate Spin-offs Lawyers, Doctors, …. Innovation 07-03-2014 New to market JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur
  • 54. 54 Definition 4: A classical definition Thinking and acting = There is a “method” Central role of the opportunity (but found or made?) A way of thinking and acting that is opportunity obsessed, holistic in approach & leadership balanced for the purpose of value creation Take all aspects into consideration Need to be managed There are best practices Value for the stakeholders, i.e. founders, team, investors, customers, society… J. Timmons USA 07-03-2014 JADE - Entrepreneurial Manager - 2014 © Olivier Witmeur