Post-Symposium Material on Corporate Entrepreneurship

Post Symposium Material
Corporate Entrepreneurship Workshops
Innovation In Action 2014 arranged by
Innovation Pioneers
INNOVATION & CORPORATE VENTURING
© 2014 GOOGOL BUSINESS NAVIGATOR AB

Content
Part 1. Pre workshop material
• The workshop description
• The structure of the workshops
• A pre-Innovation In Action reflection on Corporate Entrepreneurship
Part 2. Workshop content
• Compiled notes and comments from the two workshops
• Dariush’ slides from the workshop (by request)
Part 3. Post workshop material
• A post-Innovation In Action reflection by Dariush

PART 1

It appears, however, that many companies lack the skills to develop and
implement a strategy and necessary systems for dealing with
intrapreneurship. In fact, a British study reports that only 14% of FTSE-100
companies believe they can develop successful intrapreneurial processes on
their own. In addition, only 50% have identified a clear route to profitability in
new ventures.
The opportunities that lay in embracing intrapreneurship are considerable,
although there are many hurdles on the road to success. Every company is
unique and therefore there are no turnkey solutions.
In this workshop we aim at pointing out factors on how to foster
intrapreneurs and harvest value from this. Experiences, solutions and some
cases to bring home in an inspired and eager mind, now, set to commence
the adoption of corporate entrepreneurship in each organization.
“I hope the workshop participants bring…”
I hope the participants in this workshop bring experiences from their
organizations so that we can iterate around; how we have succeeded, or
not, in engaging the entrepreneurial spirit, re-invigorated it if lost and shown
results hereof.
I hope we can share the insights of true entrepreneurs, as well as those that
have tried to manage these within a corporate system. How in the world do
we form an atmosphere that engage entrepreneurs within?
“Something personal about me..”
I have been part of, in various roles, multiple entrepreneurial endeavors. My
starting point was actually working for a few true entrepreneurs, such as Mr
Jan Stenbeck. Apart from this I am fascinated by samic handicraft which is
actually just one of many passions I have. My current main personal topic, is
further developing the idea of ’Leadership beyond personal winnings’.
“Something about the place I work..”
One of the metrics in Googols strategic portfolio, is to what extent we
engage on an entrepreneurial basis.
Corporate Entrepreneurship
Most organizations face challenges in time to market, cost to market and
delivering actionable creativity. The challenges are multi faced, they are
often cultural, based on hierarchical organizations, and aversion of risk.
Fostering entrepreneurial behavior, methods and approaches within an
organization, demands a culture for intrapreneurs. A possibility for large
organizations is to engage in true Corporate Venturing. Within these
programs internal projects can be separated and externally driven projects
can be integrated. Developing a strategy with balanced risk and efforts,
network, competence and a working structure for this is vital for any
organization engaging in venturing.
In this session we will meet and listen to experienced venture managers,
entrepreneurs and intrapreneurs. We will listen to the challenges they have
struggled with and discuss methods for organizations to engage corporate
entrepreneurship as a means to efficient Innovation. We aim at co-creating a
list of recommendations and methods, as well as suggestions to the
government on how to incentivize corporate entrepreneurship.
The session is facilitated by Dariush Ghatan from Googol, Tim Huse,
Head of Strategy and Innovation at Cavendi and Joachim Cronquist,
Head of Innovation Portfolio Management Googol.
A word from Dariush:
The role of the corporate entrepreneur, or in some cases the intrapreneur,
can be crucial to achieving traction and thrust in the various stages of
innovation.
By committing itself to intrapreneurship and by implementing an
intrapreneurial process, companies do not only promote the creation of new
businesses. American studies have shown that intrapreneurial companies
outperform non-intrapreneurial companies within a number of business
critical areas, including sales growth, profitability and market share. By
giving employees the opportunity to voice ideas and participate in the
development of new businesses, a company also strengthens its ability to
attract and retain talented people.

Introduction
-Warm up participants
-Reflect on need
-Reflect on entrepreneurship
-Intro to subject
-Examples of structured initiatives
WORKSHOP STRUCTURE
CORPORATE ENTREPRENEURSHIP
CV
Reflection
-Confirmation of ws results
-Adding insights and examples
-Inspire to further investigation
-Vary the contexts
-Example of agile initiative
Documentation/Presentations
-Summerize each ws module
-Draw conclusions
-Discuss in groups
-Focus on topic
WHY ENGAGE IN C.E.?
Prepare a pitch for chairman on
why C.E. Is needed now.
Find arguments
-Present the pitch
HOW DO WE DO THIS 360?
Find the hurdles we have to
overcome, to enjoy the fruits
present them as tactical tools.
-Present the pitch
WHY ENGAGE IN C.E.?
Prepare a the background for a
pitch on why C.E. Is needed now.
Find arguments
-Discuss the findings
HOW DO WE DO THIS FOCUS?
Focus on one specifik major
hurdle. Explore and create
solutions to this.
-Present the pitch
Group 2 Group 1

It is not the Big that will eat the Small. It is the fast that will (b)eat the
slow!*
The Corporate Entrepreneurship workshops are crammed-packed, the
interest for this subject has definitely been super hot. Why is that?
Do we now see how entrepreneurship can reinvigorate and spike certain
behavior and be a source of long-lacked energy? Which characteristics does
the entrepreneur carry that we need to “successfully” innovate our
businesses, processes, products and lives?
What frightens us when we think of the intra organizational entrepreneur, or
the intrapreneurs as she can also be called? What do we need in terms of
structure and processes to support these people?
Is it necessary “people”? Or can it be ways of organizing our teams?
As you eagerly study the multitude of apps, mails, tweets and news on your
phone on your way to Innovation In Action; Give it a thought.
In which ways do I function as an entrepreneur? How could this behavior
benefit my organization, whether small or big?
Have we reached lines end to acquisitions of small tech? Will we see a
continued journey of entrepreneurs choosing to take their technologies to
large scale success, finding them more hand-over ready as the grow slow?
Will entrepreneurs choose to take the escape route and refine yet another
business idea of their own, rather than incorporating their freedom to
operate?
If you would like, drop me a quick note on any thoughts you have, based on
these thoughts.
*Originally the Rupert Murdoch quote is claimed to read “Big will not beat small anymore. It
will be the fast beating the slow”

PART 2

Corporate Entrepreneurship Workshop
Innovation in Action 18-19 November
Googol Business Navigator
Innovation in Action
Corporate Entrepreneurship Workshop
Compiled notes and comments from the workshops

1. Why is Corporate Entrepreneurship important?
2. How to engage in Corporate Entrepreneurship?
1. What are some challenges with Corporate Entrepreneurship?

Why is Corporate Entrepreneurship
important?

Why is Corporate Entrepreneurship important?
Workshop Nr 1:1 & 2:1
Corporate Entrepreneurship is necessary since: 1
• It lets us focus on opportunities, when there is a general business focus on sustaining
• It separates risk in risk averse organizations
• Customer needs and behaviors changes
• Markets change rapidly, entrepreneurial behavior leverages agility
• A better way to fence off competition
We want to engage in Corporate Entrepreneurship in order to: Get traction in the portfolio 2
• Achieve growth, increase sales, create new revenue streams, decrease costs, increase profits
• Decrease time-to-market, reduce lead times, become more efficient
• Create energy and passion
• Manage risk
• Improve brand value and market reputation
• Reduce bureaucracy
• Retain/increase attractiveness as an employer, retain talents
• Retain customers
• Maintain/increase competitiveness
• Keep lifecycle alive, re-invent ourselves
• Make bigger changes happen, find new opportunities
• Push ourselves as a company
• Create business value from ideas
• Break down internal silos
It doesn’t make sense to steer if you stand still!

How to engage in Corporate
Entrepreneurship

How to engage in Corporate Entrepreneurship?
Workshop Nr 1:2
How? 1
• Engage top leaders, mid-leaders, employees
• Empower all employees
• Facilitate knowledge sharing
• Connect people and ideas
• Bottom-up approach
• Physical places to meet and inspire
• Align work processes
• Align objectives
• Align values
• Align vision
• Engaging vision
• Set and manage expectations
• Encourage and accept failure
• Encourage risk-taking
• Incentives, rewards
• Celebrate failures
• Sales bonuses only on “new products”
• Manage risks and uncertainty - uncertainty scares the sh.t out of us!
• Leadership as part of the culture
How do we capture new practices and trends? 2
• Customer centricity
• Utilize the agility, power of “troublemakers” in a positive
way
• Be proactive rather than reactive
Act during full lifecycle!
Kill your darlings! Focus!
Bring in new!
Dare!
Involve people, talents!
Believe in people!
3-sions:
vi-sion, mis-sion, pas-sion
What effect shall we expect from CE? 3
>Profitability, >margins on new services/products,
>addressable market, budget allocation, new market (not
grow current), manageable risk

Which challenges with Corporate
Entrepreneurship, need to be met?

Challenges with Corporate Entrepreneurship (1/4)
Workshop Nr 2:2
Challenge 1
How to persuade top management to engage in Corporate Entrepreneurship?
“Make it specific”
• Show short-term effects also
• Place financial returns/metrics
• Address and accept accountability
“Get buy-in for the idea”
• Make tangible/prototype
• Customer need/pain point
• Common language/models
“The plan is…”
• Be ready to address hurdles
• Have a plan ready
• Show similar cases
“The time to act is NOW”
• Instill sense of urgency
• Threats/case examples
• Visualize new market entries
“Isolate risk”
• Keep separate from core business
• Hedge against downside
• Limited budgets will reach further
“Use existing assets &
capabilities & promote failures”
• Embrace failures as low cost
probing
Selling Points
“Create option value”
“Get good PR, CE strengthens
the brand”
Question from audience:
How do you convince the management of low risk? Isn’t innovation supposed to be risky?

Workshop Nr 2:2
“Convince the management that they need to engage in corporate entrepreneurship while doing other stuff too,
otherwise they will die. If they don’t listen to you – go to another company. Some companies deserve to die.”
Challenge 2
How to manage portfolio allocation?
– Do or Die –
Workshop Nr 2:2
Comment from audience:
“A good way to do this [leave a
company] is through some ‘f..k-you-money’
– save up some money so you
can survive without a job for a period.”
“Clarify the roles within the firm, so that
each area within the portfolio gets enough
attention. Either split the portfolio within
different employees or split each
employee’s role into different
responsibilities within the portfolio.”

Workshop Nr 2:2
Challenge 3
How to manage conflicts between old and new products (cannibalization)?
“It’s like driving on a highway. Cars drive out of the highway, and if there are no highway entrances,
there will be a shortage of cars driving on the highway. So, either you ‘cannibalize’ in a good way or you
get beaten by your competition.”
• Cannibalization is a necessity in order to be competitive and to not die out.
• You need to motivate the company to not be afraid of creating new products just because of possible cannibalization.
• You need to focus also on the long-term pipeline.
• You need to not only accept new products, but also be able to let go of old products.
• Overcome the individual’s fear of change. Motivate. Involve. Reward.
• Visualize the reality.

Workshop Nr 2:2
Alternative 1: Scare them around our current
strategy and the road we are heading
• Becoming irrelevant
• Missing opportunities
Challenge 4
How to create a sense of urgency and anchor the need to innovate within the management?
Alternative 2: Paint the picture of opportunities
• Growth
• Satisfaction within firm
• Attractiveness within firm
HOW?
• By real-life examples: trend research, customer analyses, prototypes, pilots, opportunity analyses, examples from other companies, visit a competitor,
visit customers, live in your customers’ shoes
• Convince them with rational analyses, but also through talking to their emotions by making them feel what their customers are feeling
• Influence all stakeholders relevant for the innovation, also people lower in the organization
• Show internal examples to show that we can
• Be prepared to do it over and over again
• Connect the message with the ‘why’ of the company
• Bring in an external “objective” view
• Who needs to anchor it? Who does the management trust?

Its all about Opportunities
Innovation In Action 2014
Reflections for the Corporate Entrepreneurship workshop

IT’S NOT THE BIG THAT WILL EAT THE SMALL
IT’S THE FAST THAT WILL (B)EAT THE SLOW!

Business
Development
Agile team
Spin-out
Spin-off
Aquisition Periscope JV
InInItnetetrenrnranalal l External

The Enabler
(Google)
The Producer
(Cargill)
The Opportunist
(Zimmer)
The Advocate
(DuPont)
InIDnItnetifetrfenrunrasnalealdl Focused
Ad Hoc Dedicated
Resource
Authority
Organizational
Ownership
MITSloan
Corporate Entrepreneurship Matrix

WHY
WHERE
HOW
WHO
LISTEN
AND
TELL
UNITE
WHAT
COMMENT:
”What” is best answered
by a portfolio approach
FROM GOOGOL INNOVATION CAPABILITY CONFIGURATION
MODEL
STRATEGY
• Define current status and reason
• Formalize starting strategy
• Define types of innovation
• Define goals, guides and
resoures
STRUCTURE
• Decide organizational placing
• Define and allocate resources
• Form supporting governance
METHODS, PROCESSES AND
TOOLS
• Unstructure what can be
• Infuse courage and curiosity
• Define functional processes
• Choose tools
• Define metrics
ROLES AND CULTURE
• Set and allow actionable
roles
• Engage staff
• Eliminate cultural hurdles
• Free the leader
• Educate the staff
• Celebrate everything
COMMUNICATION
• Hear what customers say
• Communicate with the future
• Formalize feedback loops
• Clarify goals and targets
• Dare to stick out
ECO-SYSTEM
• Identify collaborations
• Network
• Involve customers and
prototype
• Evaluate M&A,
Periscoping and Spin-ins
• Share

COMMENT:
”The Innovation Void” is
expressed as an inability
to go from ideas to
projects, can be solved by
one of the entrepreneurial
approaches in the
venturing matrix.

COMMENT:
The dilemma between
resource allocation and
need, again suggesting
that visualizing the
strategy in an portfolio
approach,can help.

70 % 8 %
10 % 2 %
InInItnetetrenrnranalal l External
COMMENT:
Yes, we have left 10 % for
slack.. When balancing
this portfolio

COMMENT:
Agility, speed and
courage will be leading
starsi n meeting
tomorrows business
models.

Dariush Ghatan
+46-70-606 86 96
dariush.ghatan@googol.se

PART 3

5 Post workshop reflections
Entrepreneurial behavior isn’t necessary achieved with large scale programs. Infuse some entrepreneurship
by autonomous teams, projects as well as individual engagements. Compare the 8 hour- USD 500 budget to
the large scale Corporate Venturing approach.
Let results lead to results. Teams that achieve results based on entrepreneurial endeavors and behavior
shall retain financial results to grow their program beyond initial budget. That creates drive. Form the
structure and organizational geography to allow this. Sometimes, below the surface is better than anywhere
else.
Entrepreneurs look at problems as opportunities. Opportunities are core to development. Engaging in risk is
part of this. Look for the right way to calm those that need to be, and find passion thru those that embrace
this.
We innovate to be better, not (only) to grow. Being better can encompass growth, profitability, quality as well
as reasons beyond personal winnings. To engage here, passion is needed. Entrepreneurs are passionate.
Management support and engagement is vital to keep these going. Budget for time, it will pay off.
Take a portfolio approach to what you engage in, as well as which resources are invested.

Further reading and viewing
• View the videos made at the workshop here
• Articles influencing this session, examples
– The Four Models of Corporate Entrepreneurship, MITSLOAN Management Review SMR266, 2007
by Wolcott and Lippitz
– A Paradigm of Entrepreneurship: Entrepreneurial Management, Wiley-Blackwell, 2012 by
Stevensson and Jarillo
– The Paradox of Corporate Entrepreneurship, Strategy+Business, 2003 by Birkinshaw
– Corporate Venturing, Harvard Business Review, 2013 by Lerner
– Building a Growth Factory; Four Components that Make Innovation Repeatable; Harvard Business
Review, 2012 by Anthony and Duncan
– Build an Innovation Engine in 90 Days, Harvard Business Review, 2014 by Anthony and Duncan
• Papers by us at Googol

Post-Symposium Material on Corporate Entrepreneurship

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