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Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
PART 4
CREATIVITY AND
INNOVATION
CHAPTER 14
Encouraging Creativity
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Creativity
• Creativity is a right brain activity
• It involves lateral as opposed to vertical
thinking.
• It is intuitive, imaginative and rule breaking
• It requires interpersonal and emotional skills
and is people focused.
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Creative v Logical Thinking
Seeks questions Seeks answers
CREATIVE LEFT BRAIN LOGICAL RIGHT BRAIN
Diverges
Explores different views
Restructures
Seeks ways an idea might
help
Welcomes discontinuous
leaps
Welcomes chance intrusions
Open ended
Converges
Asserts best or right view
Uses existing structure
Says when an idea will not
work
Uses logical steps
Focuses on what is relevant
Closed
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Creative Types
• Conceptual fluency - They are able to produce many
ideas
• Mental flexibility - They are adept at lateral thinking.
• Originality - They produce atypical responses to
problems
• Suspension of judgement - They do not analyse too
quickly
• Impulsive - They act impulsively to an idea,
expressing their ‘gut-feel’
• Anti authority - They are always willing to challenge
authority
• Tolerance - They have a high tolerance threshold
towards the ideas of others
Majaro (1992)
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The Creative Process
Generating knowledge and awareness
Incubation process
Generating ideas
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Sources of Commercial Ideas
INTERNAL
Awareness and ideas
R&D
Engineering
Purchasing
Production
Marketing and sales
EXTERNAL
Distributors and agents
Competitors
Suppliers
Customers
Universities,
consultants,
exhibitions
Awareness
& ideas
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The Creative Process
Generating knowledge and awareness
Evaluation and implementation
Incubation process
Generating ideas
Feedback
loop
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Techniques to aid Creativity
• Brainstorming
• Analogy
• Attribute analysis
• Gap analysis
– Perceptual mapping
– Non-metric mapping
– Repertory grid
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Drucker’s Sources of Opportunity
• The unexpected
• The incongruity
• The inadequacy in underlying processes
• The changes in industry or market structure
PLUS
• Demographic changes
• Changes in perception, mood or meaning
• New knowledge
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Why? Why?
Deliveries
unreliable Transport
problems
Production
bottlenecks
Quality is
suspect
Price not
competitive
Materials not
consistent
Lost best
salespersonSales are
falling Inadequate
checking
We use ‘cost
plus’ pricing
Inadequate
rewards
Why?
Why?
Why?
Why?
Why?
Why?
Why?
Why?
Why?
Why?
Why?
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Approaches to Innovation
• Have a problem & seek a solution
• Have a solution and seek a problem
• Identify a need and develop a solution
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Drucker’s 5 Stage to Innovation
1. Analyse opportunities, internal and external.
Innovate for NOW - timing is everything.
2. Innovation is conceptual and perceptual, so
look at financial implications and analyse
whether it meets the opportunity.
3. Keep innovation simple - KISS!
4. Start small, take an incremental approach.
5. Aim at leadership and dominate the
competition as soon as possible.
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Blocks to Organisational Creativity
• Lack of organisational slack
• Too much bureaucracy
• Tight financial control
• Poor communication
• ‘Not invented here’
• Too much criticism, not enough praise
• Over-tight planning
• Promoting too many like minded people from within
• Hoarding of problems
• Insufficient training
• Banning of brainstorming
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Encouraging Organisational Creativity
• Valuing and rewarding creativity
• Trusting culture
• Freedom - not over-control
• Slack in resources
• Open communication
• Exposure to new ideas
• Tolerance of mistakes
• Tolerance of divergence/difference
• ‘Creative abrasion’
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Technology, Talent, Tolerance and
Economic Growth
Innovation
Tolerance
Creative
class
Technology
Talent
Economic
Growth
Florida
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The Creativity Matrix
CREATIVITY LEVEL
CREATIVITYTREND
Ireland Finland
Denmark
USA
Sweden
Netherlands
UK
Germany
Italy
France
Spain
Portugal
Greece
Austria
LAGGARDS
UP & COMING
LOSING GROUND
LEADERS
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Michael Dell
We learned the importance
of ignoring conventional
wisdom and doing things
our way....It’s fun to do
things that people don’t
think are possible or likely.
Its also exciting to achieve
the unexpected.

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Ch14 encouraging creativity

  • 1. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns PART 4 CREATIVITY AND INNOVATION CHAPTER 14 Encouraging Creativity
  • 2. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Creativity • Creativity is a right brain activity • It involves lateral as opposed to vertical thinking. • It is intuitive, imaginative and rule breaking • It requires interpersonal and emotional skills and is people focused.
  • 3. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Creative v Logical Thinking Seeks questions Seeks answers CREATIVE LEFT BRAIN LOGICAL RIGHT BRAIN Diverges Explores different views Restructures Seeks ways an idea might help Welcomes discontinuous leaps Welcomes chance intrusions Open ended Converges Asserts best or right view Uses existing structure Says when an idea will not work Uses logical steps Focuses on what is relevant Closed
  • 4. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Creative Types • Conceptual fluency - They are able to produce many ideas • Mental flexibility - They are adept at lateral thinking. • Originality - They produce atypical responses to problems • Suspension of judgement - They do not analyse too quickly • Impulsive - They act impulsively to an idea, expressing their ‘gut-feel’ • Anti authority - They are always willing to challenge authority • Tolerance - They have a high tolerance threshold towards the ideas of others Majaro (1992)
  • 5. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns The Creative Process Generating knowledge and awareness Incubation process Generating ideas
  • 6. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Sources of Commercial Ideas INTERNAL Awareness and ideas R&D Engineering Purchasing Production Marketing and sales EXTERNAL Distributors and agents Competitors Suppliers Customers Universities, consultants, exhibitions Awareness & ideas
  • 7. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns The Creative Process Generating knowledge and awareness Evaluation and implementation Incubation process Generating ideas Feedback loop
  • 8. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Techniques to aid Creativity • Brainstorming • Analogy • Attribute analysis • Gap analysis – Perceptual mapping – Non-metric mapping – Repertory grid
  • 9. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Drucker’s Sources of Opportunity • The unexpected • The incongruity • The inadequacy in underlying processes • The changes in industry or market structure PLUS • Demographic changes • Changes in perception, mood or meaning • New knowledge
  • 10. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Why? Why? Deliveries unreliable Transport problems Production bottlenecks Quality is suspect Price not competitive Materials not consistent Lost best salespersonSales are falling Inadequate checking We use ‘cost plus’ pricing Inadequate rewards Why? Why? Why? Why? Why? Why? Why? Why? Why? Why? Why?
  • 11. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Approaches to Innovation • Have a problem & seek a solution • Have a solution and seek a problem • Identify a need and develop a solution
  • 12. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Drucker’s 5 Stage to Innovation 1. Analyse opportunities, internal and external. Innovate for NOW - timing is everything. 2. Innovation is conceptual and perceptual, so look at financial implications and analyse whether it meets the opportunity. 3. Keep innovation simple - KISS! 4. Start small, take an incremental approach. 5. Aim at leadership and dominate the competition as soon as possible.
  • 13. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Blocks to Organisational Creativity • Lack of organisational slack • Too much bureaucracy • Tight financial control • Poor communication • ‘Not invented here’ • Too much criticism, not enough praise • Over-tight planning • Promoting too many like minded people from within • Hoarding of problems • Insufficient training • Banning of brainstorming
  • 14. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Encouraging Organisational Creativity • Valuing and rewarding creativity • Trusting culture • Freedom - not over-control • Slack in resources • Open communication • Exposure to new ideas • Tolerance of mistakes • Tolerance of divergence/difference • ‘Creative abrasion’
  • 15. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Technology, Talent, Tolerance and Economic Growth Innovation Tolerance Creative class Technology Talent Economic Growth Florida
  • 16. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns The Creativity Matrix CREATIVITY LEVEL CREATIVITYTREND Ireland Finland Denmark USA Sweden Netherlands UK Germany Italy France Spain Portugal Greece Austria LAGGARDS UP & COMING LOSING GROUND LEADERS
  • 17. Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns Michael Dell We learned the importance of ignoring conventional wisdom and doing things our way....It’s fun to do things that people don’t think are possible or likely. Its also exciting to achieve the unexpected.