Contenu connexe
Similaire à Creating Entrepreneurial Work Environments (20)
Creating Entrepreneurial Work Environments
- 1. BEIJING CAMBRIDGE CASABLANCA CHICAGO DELHI DUBAI HONG KONG JOHANNESBURG
LONDON LOS ANGELES MADRID MOSCOW MUMBAI MUNICH NEW YORK PARIS RIYADH
SAN FRANCISCO SÃO PAULO SEOUL SHANGHAI SINGAPORE TOKYO TORONTO ZURICH
Creating Entrepreneurial Work Environments
Executive Seminar for MILE
Jeddah, March 28, 2011
Copyright © 2011 by Monitor Company Group, L.P.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying,
recording, or otherwise — without the permission of Monitor Company Group, L.P.
This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.
COMPANY CONFIDENTIAL
- 2. Agenda
Objectives for the Day and Introductions 8:30
Intro to Entrepreneurship: Why Entrepreneurship Matters 9:00
(interactive presentation)
– Exercise one: Entrepreneurship as a Strategic Choice 9:30
– Report out and Plenary Discussion 10:00
Getting it Right: The Key Levers for Entrepreneurship 10:30
(interactive presentation)
– Exercise two: Barrier and Enablers in your Organization 11:00
– Report out and Plenary Discussion 11:30
Closing Remarks 12:00
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 2
- 3. Today’s Objectives
We are here because we believe in entrepreneurship. Today we hope to emphasize
why it matters, illustrate how to do it better, and have fun
Understand of why entrepreneurship matters in a corporate environment
Review the barriers to nurturing entrepreneurial behavior among your employees
Learn practical ways to make your work place more entrepreneurial, through case
studies and vibrant idea sharing
Put your own ideas to the test through some exercises with your peers
Have fun!
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 3
- 4. Introductions: Who We Are
Francesco Fazio Joel Finlayson Neil Pearse
James Carty Noura Al-Turki Dr 3M, MILE
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 4
- 5. Agenda
Objectives for the Day and Introductions 8:30
Intro to Entrepreneurship: Why Entrepreneurship Matters 9:00
(interactive presentation)
– Exercise one: Entrepreneurship as a Strategic Choice 9:30
– Report out and Plenary Discussion 10:00
Getting it Right: The Key Levers for Entrepreneurship 10:30
(interactive presentation)
– Exercise two: Barrier and Enablers in your Organization 11:00
– Report out and Plenary Discussion 11:30
Closing Remarks 12:00
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 5
- 6. Entrepreneurship is at the essence of strategy
Relentlessly
explore
new and
different ways
to compete and grow
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 6
- 7. Defining Entrepreneurship… in Your Own Words (1/2)
Q1: In your own words, how do you define entrepreneurship?
“Ability to start new businesses, having the right
intuition for new market opportunities, and having the
courage to invest in new technology, with creativity”
“Creating a new business… with limited
resources and maximum freedom”
“Taking the initiative to commit oneself (and other
resources) to a high-potential venture which entails
a significant level of uncertainty and risk, and
persisting to see it through to successful completion”
Source: Monitor Survey on Entrepreneurial Environments in the Middle East. Executive Seminar, Jeddah, March 28.
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 7
- 8. Defining Entrepreneurship… in Your Own Words (2/2)
Q1: In your own words, how do you define entrepreneurship?
“A wonderful, but difficult experience that a lot of people
desire, but few will ever try”
“Creating a think tank environment to develop
ideas and ventures… trying new things, and
experiment”
“Utilizing knowledge, experience and ideas
to develop businesses that earn money”
“Undertaking risks … in an innovative way …working for
oneself or for a company”
Source: Monitor Survey on Entrepreneurial Environments in the Middle East. Executive Seminar, Jeddah, March 28.
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 8
- 9. Myths and Truths about Entrepreneurship
Entrepreneurship is more commonly associated with start-ups... not large organizations
Myths Truths
“Entrepreneurship only An increasing number of
exists in small, start-up large companies are
type companies” becoming Corporate
(e.g., large companies require Entrepreneurs
rigid systems and controls) (maintained entrepreneurial
focus and reinvented themselves)
“Due to regulatory and There are numerous
cultural factors, examples of high-growth,
entrepreneurship does not driven entrepreneurs in
exist in the Middle East” the region
(e.g., fear of failure or losing face, (barriers exist, however, especially
stifling regulatory environments) for state owned companies)
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 9
- 10. Entrepreneurial Environments Matter
Entrepreneurial environments benefit employees, companies and ultimately the economy
Employee Benefits Company Benefits
Higher Satisfaction, as they are provided Ability to react faster, to market
with greater responsibility early on
changes
Greater commitment, as they feel valued Benefits Better, broader innovation,
and part of the team to the through improved collaboration; and from
Economy everywhere in the firm, not just R&D
Increased learning & development,
as they try and experiment new ideas
Lower employee churn
Improved performance, as they feel Higher return on human capital
more ownership for their own actions
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 10
- 11. Barriers to Entrepreneurships
Barriers still exist particularly within large (monopolies or formerly state owned)
enterprises
Direct Influence Indirect
Cultural Organizational Educational Regulatory
Very hierarchical Inefficient process
Cultural focus on Education system
structures; no for launching new
consensus thinking; focused on learning
incentives/rewards businesses or ideas,
risk adversity; fear by repetition vs.
for entrepreneurial low ease of doing
of failure critical thinking
behaviors business
With deliberate plans and good design, you can drive change
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 11
- 12. Enablers of Entrepreneurial Organizations
Successful entrepreneurial firms start by making entrepreneurship an explicit strategic
choice
DIRECTION
Making entrepreneurship an
explicit strategic choice
Entrepreneurial
ARCHITECTURE BEHAVIOR
Organizations
Targeted incentives Collaboration
and rewards and sharing of
Flexible, rotational
ideas
programs Taking risks and
Open workspaces
celebrating
failures
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 12
- 13. Who’s Doing This?
We have looked at a number of entrepreneurial initiatives run by some of the world’s
leading organizations
Examples of
Entrepreneurial
Environments
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 13
- 14. What we Have Learned
We have identified 5 common themes to create entrepreneurial environments
Conventional
1 Leadership from the top
(Direction)
2 Right Incentives and Rewards
(Architecture)
(Architecture /
3 Employee Self-Direction
Behavior)
4 “Celebrating” Failures
(Behavior)
5 Workspace Design
(Architecture)
Bold
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 14
- 15. 1 Leadership from the Top
The Theory
Top management plays the primary role in the development of entrepreneurial
environments
Makes entrepreneurship a
strategic choice
Sets the example
Direction
Sets expectations
Sponsors initiatives
Leverages existing
assets (e.g. brand, Encourages risk-taking
people, infrastructure) Architecture Behavior
Fosters a culture of trust
Provides access to and collaboration
capital
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 15
- 16. 1 Leadership from the Top
Amazon Performance Review
Amazon has grown in the largest online retailer in the world, giving substantial return to
its shareholders
Stock Price of Amazon and its Competitors, June 1997– Mar 2011
200 10000
Amazon
Amazon has outperformed
ebay
the market and E-bay on
NASDAQ Index the success of the kindle 7500
Stock Prices USD
NASDAQ Index
100 5000
2500
0 0
Jun-97
Jun-98
Jun-99
Jun-00
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Dec-10
Dec-97
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Source: Capital IQ; Yahoo Finance
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 16
- 17. 1 Leadership from the Top
Amazon Strategy: Entrepreneurship at Every Level
Entrepreneurship as a
Strategic Choice
What are our goals
and aspirations? Where are we going
to play? How are we going
to win? What are the
required
Originallyto be the capabilities?
world’s leading Channel: Online Only
online bookstore… Culture: … to foster
Foster entrepreneurial entrepreneurship
Categories:
… then to become behaviors & employee
Consumer goods: Provide employees
the leading online Books & CDs… tools driven ideas freedom to decide
retailer Digital media
Entrepreneurship at
Electronics Develop internal
To enter one new every level:
… innovation platform
business each year Product development:
… for peer review
(e.g. Android App Hosted (3rd party)
Store launched Geography: merchants, Prime, EC2..
March 25th) Expand internal
Procurement:
50% US
Manufacturer sourcing investment platform
50% International
Fulfillment: Flat fee
for employee ideas
(Europe #2, Asia #3)
annual delivery
Technology: CRM
Innovation
HR: (see next column)
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 17
- 18. 1 Leadership from the Top
Jeff Bezos’ Commitment to Entrepreneurship
2005 “Amazon excels at different kinds of entrepreneurship –
from creating new ways to doing business… to making
small changes that improve the online store.”
2007 “Not all executives are committed to making
entrepreneurship a top priority … the difference
Jeff Bezos, CEO between a company whose CEO and leadership team
have an “all-in” mentality on entrepreneurship, and
the one who is not, is unmistakable – and so is the
impact on the company’s culture and results.”
2009 “We have entrepreneurs at every level of Amazon.
This does not necessarily mean that every employee is
responsible for creating the next breakthrough
product. It does mean everyone must look for and find
ways to do their work better than it’s ever been done
before, and to do that as often as possible
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 18
- 19. 1 Leadership from the Top
Results of Entrepreneurship at Amazon
2010 “Passion and innovation seem to go a long way. We could have been satisfied
with revolutionizing the way we find and buy books…. but we wanted to
revolutionize the way we read them too”
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 19
- 20. 1 Leadership from the Top
3M Performance Review
3M has outperformed the market the market in the last 10 years, and has enjoyed a
rapid recovery post 2009 recession
Stock Price of 3M and its Competitors, Feb 1968 – Mar 2011
120 3M has outperformed 15000
3M competitors on its
EI DuPont de Nemours & Co. (Du Pont) relentless focus on new 12500
Avery Dennison Corporation product introductions
90
Stock Prices USD
NYSE Index
NYSE Index
10000
60 7500
5000
30
2500
0 0
Feb-68
Apr-71
Jun-74
Jun-85
Jun-96
Jun-07
Aug-88
Aug-77
Aug-99
Aug-10
Nov-72
Oct-80
Nov-83
Oct-91
Nov-94
Oct-02
Nov-05
Sep-69
Jan-76
Mar-79
Jan-87
Mar-90
Jan-98
Mar-01
Jan-09
May-82
May-93
May-04
Source: Capital IQ; Yahoo Finance
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 20
- 21. 1 Leadership from the Top
3M Strategy: Diversification Leads the Way
Entrepreneurship as a
Strategic Choice
What are our goals
and aspirations? Where are we going
to play? How are we going
to win? What are the
required
Exceed market capabilities?
growth Geography :
Corporate Culture: … to foster
Invest in emerging
Generate 30% of entrepreneurship
markets (Brasil, China, Nurture innovation
revenue from new
India, Indonesia) Provide (some) 15 % Time Allocation
products in past five
Expand in international employee autonomy Option for individual
years
mature markets Remove the stigma projects
Growth in all six from failure
Key Industry Emphasis: Dedicated corporate
business divisions
Consumer & Office Invest in the future: seed capital for new
Display & Graphics Dedication to R&D ideas
Healthcare New venture funding
Members of new venture
Communications Localize labs and
research facilities teams that do not
Industrial &
succeed are guaranteed
transportation Safety
Cost Control: their jobs
Safety, Security and
Reducing
Protection Services Maintain R&D spending
manufacturing costs
Shorten supply chain
of US$1B
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 21
- 22. 1 Leadership from the Top
A History of Entrepreneurship
1902 2010
Minnesota Mining and William L. McKnight
Manufacturing Co. CEO, 1929-1966
Legendary,
Inspirational Leader
Flexible Sandpaper
“At 3M, we stimulate ordinary people to
produce extraordinary performance”. USD 27 billion sales
60,000 Products; 20+ brands
"Hire good people and let them do their job in
their own ways. And tolerate mistakes" 500 new products per year
"We do think innovation is more than an R&D 5-7% of Sales, 2x average manuf.
accident, and that you can create the right 30% sales from new products in last 5-year
entrepreneurial environment for it”.
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 22
- 23. 1 Leadership from the Top
Strategic Importance of Entrepreneurship
Entrepreneurship matters a lot to a few, and a little for everybody. Regardless of your
company size, and your industry, entrepreneurship can drive significant advantage
A lot for a few: truly disruptive business
models (e.g. Amazon); high growth
industries (e.g. internet, high tech)
In the middle: transformative
businesses in industries with some
degree of competition and growth
Entrepreneurship
at the core of the
business A little for everybody: marginally
incremental business models; deeply
competitive, low growth industries
Even in the periphery, however,
companies can derive great value
from entrepreneurship – see 3M
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 23
- 24. Agenda
Objectives for the Day and Introductions 8:30
Intro to Entrepreneurship: Why Entrepreneurship Matters 9:00
(interactive presentation)
– Exercise one: Entrepreneurship as a Strategic Choice 9:30
– Report out and Plenary Discussion 10:00
Getting it Right: The Key Levers for Entrepreneurship 10:30
(interactive presentation)
– Exercise two: Barrier and Enablers in your Organization 11:00
– Report out and Plenary Discussion 11:30
Closing Remarks 12:00
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 24
- 25. Exercise One: Entrepreneurship as a Strategic Choice
Exercise One: Entrepreneurship as a Strategic Choice
Part 1: Table Discussion (30 min)
Name: _____________
Map your company on the 2x2 Organization: _____________
Discuss amongst your table partners:
– How important is entrepreneurship Critical
in your organization, and why?
– How good do you feel your company
is at nurturing entrepreneurship?
How Important Is
Entrepreneurship?
Part 2: Report-out and Q&A (30 min)
A volunteer from each table will report
the key insights from the conversation Marginal
Plenary discussion and Q&A as a group Novice Expert
How Good Are We at
Entrepreneurship?
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 25
- 26. Agenda
Objectives for the Day and Introductions 8:30
Intro to Entrepreneurship: Why Entrepreneurship Matters 9:00
(interactive presentation)
– Exercise one: Entrepreneurship as a Strategic Choice 9:30
– Report out and Plenary Discussion 10:00
Getting it Right: The Key Levers for Entrepreneurship 10:30
(interactive presentation)
– Exercise two: Barrier and Enablers in your Organization 11:00
– Report out and Plenary Discussion 11:30
Closing Remarks 12:00
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 26
- 27. Key Levers for Entrepreneurial Environments
We have identified 5 common themes to create entrepreneurial environments
Conventional
1 Leadership from the top
(Direction)
2 Right Incentives and Rewards
(Architecture)
(Architecture /
3 Employee Self-Direction
Behavior)
4 “Celebrating” Failures
(Behavior)
5 Workspace Design
(Architecture)
Bold
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 27
- 28. 2 Right Incentives and Rewards
The Theory
Ensuring adequate rewards – beyond pure financial rewards - can incentivise employees
to behave in a more entrepreneurial manner
Pay rises / Bonuses
Financial
Target driven compensation
Rewards
…
What Awards / prizes
motivates Psychological Public recognition
people? Rewards …
Empowerment
Satisfaction Increased autonomy
…
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 28
- 29. 2 Right Incentives and Rewards
Rewarding Performance “The Vodafone Way”
Shifted the work culture of employees towards greater entrepreneurship, customer focus
High employee engagement
& satisfaction
“The Vodafone Way”
– Employee Engagement: 76%
– Vodafone Pride Index: 83%
Defines key behaviors & Example behavior: Senior leaders – Manager Index: 72% (experience
goals for employees spend one day a month in a retail that managers create for their teams)
store with employees and customers
Quarterly performance Career advancement:
reviews and – Development Index: 71%
recognitions – 40% from Inspire promoted
to more senior roles (2010)
“Inspire” talent
management program Low turnover (13%)
for top performers
Example recognition in the
Vodafone Sustainability Report.
Senior management diversity
Total of 85 heroes in 2009 (26 nationalities)
Note: Vodafone was founded in 1982, operates in 70 countries, has 330 million subscribers; it employs 85,000+ globally; USD 70 Bn sales
Source: Interviews with Vodafone executives and employees. Vodafone Annual Report. 2009 Annual Vodafone People Survey (82% response rate). Monitor Analysis
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 29
- 30. 2 Right Incentives and Rewards
Incentivizing and Empowering Employees
Provides incentives based on customer satisfaction, and empowers employees to think
on their feet
Consistently pleases
extremely discerning
clientele (“guest who
already have domestic
help”)
Regularly receives
international awards for
its management and levels
Group’s hotels ranked monthly on the basis of of guest service
customer service; year-end rankings determine the
employees’ annual bonuses Entrepreneurship built on
Employees are empowered to think on their feet and combination of incentives
respond to customer needs and empowerment
Note: Founded in 1963, operates 42 hotels, 10,000 rooms in 27 countries; USD 840 Mn sales.
Source: Interviews with Mandarin Oriental executives and employees. Mandarin Oriental Annual Report. Monitor Analysis
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 30
- 31. 3 Employee Self-Direction
The Theory
Allowing employees to direct themselves – within reason - in the activities they perform
Self-direction….
… gives employees a sense of trust,
autonomy, and responsibility
… fosters unconstrained, creative
thinking
… improves employee morale
Examples
Autonomy over (some) time
Allocation to special projects
...
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 31
- 32. 3 Employee Self-Direction
2o% time policy at Google
Google’s 20% time policy provides employees with substantial flexibility, giving engineers 1 day a
week to work on a project of their choice
“20% Innovation Time” A video on Google
Engineers encouraged to take 20% of time to
work on something company-related that
they are passionate about
– Engineers can try to convince others to join their
project
“Fifty percent of what Google launched in the second
half of 2005 actually got built out of 20% time”
http://www.youtube.com/watch?v=aOZhbOhEunY&feature=related
- Marissa Mayer, VP of Search Products
Note: Founded in 1998, processes over 1 Bn data requests per day; 25,000 employees globally; US 24 Bn sales
Source: Google Website and Annual Report, * Marissa Mayer, Google VP of Search Products (speaking in June 2006) Monitor Analysis
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 32
- 33. 3 Employee Self-Direction
Atlassian “FedEx Day” Challenge
Encourages risk-taking and creative thinking through a special, regular competition
“FedEx Day” Challenge
Special challenge run every quarter
Developers have 24 hrs to deliver a
working software prototype
Ambitious projects are encouraged
Learnings are shared and discussed as a
team
Everyone presents; Atlassians vote
their favorite “FedEx delivery”
Real generation of Expands people skills Improves employee morale;
new ideas and creativity breaks the “routine”
Note: Atlassian is an Australian software company; 225 employees in Sydney, S. Francisco , Amsterdam; 20,000 customers in 134 countries; USD 59 Mn sales
Source: Company Reports, Economic Times, Monitor Analysis
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 33
- 34. 3 Employee Self-Direction
A Video on Atlassian
A video on Atlassian (between min 5-7)
http://www.youtube.com/watch?v=u6XAPnuFjJc&feature=channel
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 34
- 35. 4 Celebrating Failures
The Theory
Learning to accept failure - as an opportunity to learn - provides employees with the
confidence to take the risks necessary to be successful entrepreneurs
Fear of Failure Learning from Failures
Redefine failures as
opportunities to learn
Share lessons learned
with others
Encourage employees to
take more risks
Achieving this transition is difficult; one way to start is to identify
one or two champions within the organization, that are willing to
share their “failure” stories
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 35
- 36. 4 Celebrating Failures
Tata “Dare To Try” Award
Tata has implemented a unique award designed to encourage risk-taking and reward
failures
DARE TO TRY AWARD
To the most daring team which
made a sincere and valiant attempt Winner honored by Chairman
for a major innovation, but failed Ratan Tata, at a widely
broadcast corporate function
“The company has found the means to reward risk-takers and, to a large
extent, extinguish the fear of failure” - Tata group publication
Improves employee Unleashes creativity and
confidence and risk taking desire to try new things
Note: Tata is a multinational conglomerate; it comprises of 114 companies across 80 countries; operates in chemicals, steel, cars, IT; USD 67 Bn Sales
Source: Company Interviews and Reports; Economic Times; Monitor Analysis
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 36
- 37. 4 Celebrating Failures
BMW “Creative Error of the Month” Award
From 1990 to 1993, BMW broke down traditional mindsets at the Regensburg, Germany
factory by rewarding courageous, well-planned ideas that took risks but ultimately failed
Frees employees from
routines and rigid
structures
Promotes optimistic, risk
friendly attitudes
“Everyone is allowed to make mistakes, and to take
calculated risks” Shifts from a climate of
fear to a climate of trust
“If an innovative project carries only an 80/20,
70/30 or even a 60/40 chance of succeeding, but
you have thought it through carefully and are well
prepared, then go ahead and try it.”
Note: The Creative Error of the Month Award was originated by Gehard Bihl and executed for 3.5 years under his supervision until his departure from the company.
During that period, 12 awards were handed out to employees within the factory based on the criteria that the failure was due not to simple error but a risky idea.
Source: Bihl, G., Werteorientierte Personalarbeit. Strategie und Umsetzung in einem neuen Automobilwerk, Munchen, 1995, S. 130.
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 37
- 38. 5 Workspace Design
The Theory
Physical space matters
Where would you do your best work?
or
“It’s easier to be productive, creative and happy at work in a colourful, organic,
playful environment than in a grey, linear, boring one.”
- Alexander Kjerulf, Designer
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 38
- 39. 5 Workspace Design
Key Design Principles and Benefits
Redesigning the physical office workspace to be more adaptable and flexible can help
encourage greater collaboration and creative thinking
Design Considerations
Overall space: open, bright, easy to walk
around
Cubicals/offices: glass walls; open offices
Social areas, break rooms: open, spacious,
inviting;
Think-rooms: big white-boards, where
employees can gather, share ideas, etc.
Direct Benefits Additional Benefits
Cost to build out is often lower Recruiting
Affords a sense of "transparency“ Retention
Fosters informal interaction Brand Building
Efficiency*
* Recent sustainability studies suggest shared spaces are more efficient than people working remotely
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 39
- 40. 5 Workspace Design
An Illustration: Red Bull London
Moving from floor to floor: a slide
Note: Red Bull is an Austrian company that sells energy drinks. Its products are sold in 160 countries. It has 6,900 employees; USD 4.5 Bn Sales
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 40
- 41. 5 Workspace Design
An Illustration: ANZ Head Office, Melbourne
Note: ANZ is the fourth largest bank in Australia. It has presence in almost 30 countries. It has 40,000+ employees; USD 10 Bn Sales
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 41
- 42. 5 Workspace Design
Impact on Entrepreneurship at Telenor
Telenor relocated 6,000 employees from 40 separate locations into a new, innovative
facility, significantly improving employee collaboration and knowledge sharing
% of Employees who State New Flexible
Created the region’s most innovative &
100 Workspace had a Positive Impact on their…
effective work environment,
incorporating: 80
– Open and flexible workspace solutions 60
– New, flexible work patterns
40
– A new, uniform ITC platform
across BUs
within BU
20
Employees are allocated to one of 200
0
flexible workspace units Productivity Work Work
Contentment Quality
Work
Creativity
Communication
& Collaboration
Knowledge
Sharing
Note: Founded in 1855, Norwegian mobile telecom operator; 195 million subscribers in Scandinavia, Europe and Asia; 34,000 employees; USD 17 Bn sales
Source: Telenor website, SINTEF Building and Infrastructure study, Monitor Analysis
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 42
- 43. Agenda
Objectives for the Day and Introductions 8:30
Intro to Entrepreneurship: Why Entrepreneurship Matters 9:00
(interactive presentation)
– Exercise one: Entrepreneurship as a Strategic Choice 9:30
– Report out and Plenary Discussion 10:00
Getting it Right: The Key Levers for Entrepreneurship 10:30
(interactive presentation)
– Exercise two: Barrier and Enablers in your Organization 11:00
– Report out and Plenary Discussion 11:30
Closing Remarks 12:00
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 43
- 44. Exercise Two: Barriers and Enablers in Your Organizations
Exercise Two: Barriers and Enablers in Your Org.
Part 1: Table Discussion (30 min)
Name: _____________
Write down 1-3 things you could try in Organization: _____________
your organization
Discuss amongst your table partners: Typical Barriers 5 Key Enablers
– What barriers to entrepreneurship Fear of Failure 1. Leadership from the Top
are you facing in your organization? Lack of senior support 2. Incentives and Rewards
Lack of Employee Interest 3. Employee Self-Direction
– What might you try to overcome
Misalignment of Incentives 4. Celebrating Failures
them, and why?
Lack of autonomy 5. Workspace Design
Lack of funding
Part 2: Report-out and Q&A (30 min) Etc.
What are you going to try in your organization
A volunteer from each table will report tomorrow morning? Fill in at least 3 ideas
the key insights from the conversation
Plenary discussion and Q&A as a group Idea 1: ___________________
Idea 2: ___________________
Idea 3: ___________________
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 44
- 45. Survey Findings Review
Fear of failure, lack of incentives impede entrepreneurial behavior
Lack of employee interest possibly driven by fear of failure and misaligned incentives
provide the biggest barriers to entrepreneurship overall
Q12: What are the most significant barriers of internal entrepreneurship at your firm?
Fear of failure
Lack of employee interest
Misalignment of incentives
Education
Lack of autonomy
Lack of senior support
Corporate policies
Lack of internal competition
Lack of funding
Physical office layout
Source: Monitor Survey on Entrepreneurial Environments in the Middle East. Executive Seminar, Jeddah, March 28.
CAS-COD-Prez-Date-CTL Copyright © 2011 Monitor Company Group, L.P. — Confidential 45
- 46. Survey Findings Review
How would respondents make firms more entrepreneurial?
Q13: If you could change one or two things in your organization to
make it more entrepreneurial, what would you do?
“Share strategy company wide.”
“Using a structural, rather than opportunistic, approach with
time lines and sufficient resources.”
“Solicit, encourage, and actively develop new or
adjacent business ideas solicited from employees.”
“Allow business unit heads the freedom to move within
their budgets and hold them accountable to results only.
No micromanagement.”
“Incentivize risk taking (not recklessness).”
“Accept failures and learn from mistakes.”
Source: Monitor Survey on Entrepreneurial Environments in the Middle East. Executive Seminar, Jeddah, March 28.
CAS-COD-Prez-Date-CTL Copyright © 2011 Monitor Company Group, L.P. — Confidential 46
- 47. Survey Findings Review
What’s keeping change from happening?
Q14: Why do you think your organization has not taken the direction
you just recommended above?
“Past success is leading the way.”
“Too focused on achieving targets.”
“Lack of trust in business unit heads.”
“High turnover.”
“Short-term focus.”
“Too focused on continuing ‘business as usual’.”
“Nothing. We’re working on this full speed …. Started reaping the rewards
with notably higher innovation and risk taking since last year.”
Source: Monitor Survey on Entrepreneurial Environments in the Middle East. Executive Seminar, Jeddah, March 28.
CAS-COD-Prez-Date-CTL Copyright © 2011 Monitor Company Group, L.P. — Confidential 47
- 48. Agenda
Objectives for the Day and Introductions 8:30
Intro to Entrepreneurship: Why Entrepreneurship Matters 9:00
(interactive presentation)
– Exercise one: Entrepreneurship as a Strategic Choice 9:30
– Report out and Plenary Discussion 10:00
Getting it Right: The Key Levers for Entrepreneurship 10:30
(interactive presentation)
– Exercise two: Barrier and Enablers in your Organization 11:00
– Report out and Plenary Discussion 11:30
Closing Remarks 12:00
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 48
- 49. Recap of What We Learned
3 Types of Enablers of Entrepreneurial Organizations
Successful companies build their entrepreneurial environments on three types of
enablers: direction, architecture, and behavior
DIRECTION
Making entrepreneurship an
explicit strategic choice
Entrepreneurial
ARCHITECTURE BEHAVIOR
Organizations
Targeted incentives Collaboration
and rewards and sharing of
Flexible, rotational
ideas
programs Taking risks and
Open workspaces
celebrating
failures
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 49
- 50. Recap of What We Learned
5 Levers – from Conventional to Bold - to Spur Entrepreneurship
We have identified 5 common themes to create entrepreneurial environments
Conventional
1 Leadership from the top
(Direction)
2 Right Incentives and Rewards
(Architecture)
(Architecture /
3 Employee Self-Direction
Behavior)
4 “Celebrating” Failures
(Behavior)
5 Workspace Design
(Architecture)
Bold
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 50
- 51. Recap of What We Learned
Strategic Importance of Entrepreneurship
Entrepreneurship matters a lot to a few, and a little for everybody. Regardless of your
company size, and your industry, entrepreneurship can drive significant advantage
A lot for a few: truly disruptive business
models (e.g. Amazon); high growth
industries (e.g. internet, high tech)
In the middle: transformative
businesses in industries with some
degree of competition and growth
Entrepreneurship
at the core of the
business A little for everybody: marginally
incremental business models; deeply
competitive, low growth industries
Even in the periphery, however,
companies can derive great value
from entrepreneurship – see 3M
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 51
- 52. Revisiting Your Positioning on the 2x2
Where do you feel are in this map now? What caused your assessment to change
from the beginning of the case? And why?
Critical
How Important Is
Entrepreneurship?
Marginal
Novice Expert
How Good Are We at Entrepreneurship?
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 52
- 53. Positioning of the Case Studies on the 2x2
Critical
How Important Is
Entrepreneurship?
Marginal
Novice Expert
How Good Are We at Entrepreneurship?
Source: Monitor Analysis
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 53
- 54. Thank you. For More Information About this Topic
Published: March 2011
Entrepreneurship has become a
key strategic choice for many
companies today, but building an
entrepreneurial workplace as an
established company is
challenging
Growth at Work identifies the
critical barriers to building an
entrepreneurial environment,
and explores 5 key levers
managers can pull to overcome
them
Francesco Fazio, ffazio@monitor.com
Joel Finlayson, jfinlayson@monitor.com
Neil Pearse, npearse@monitor.com
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 54
- 55. Selection of Recent Articles from Monitor Group
Building Entrepreneurial Inside the Mind of Customer Centricity
Environments the CEO Imperative
Creating an Open Innovation in Arab Promoting Entrepreneurship
Innovation Agenda Family Businesses in the 21st Century Entrepreneurship
in the Arab World
MILE Executive Seminar on Corporate Entrepreneurship Copyright © 2011 Monitor Company Group, L.P. — Confidential 55