T.E.M

• Corporate Entrepreneurship

  -the process by which teams within an established company conceive, foster, launch and manage a new business that is distinct from the parent company but leverages the parent’s assets, market position, capabilities or other resources
• the opportunist (diffused ownership and ad hoc resource allocation)
• the enabler (diffused ownership and dedicated resources);
• the advocate (focused ownership and ad hoc resource allocation)
• Two dimensions under the direct control of management differentiate how companies approach corporate entrepreneurship. The first is organizational ownership: Who within the company has primary ownership for the creation of new businesses? (Note: This responsibility can be focused in a designated group, or it can be diffused across the organization.)
• The second is resource authority: Are projects funded from a dedicated corporate pool of money or in an ad hoc manner, perhaps through business-unit budgets?
• The Opportunist Model All companies begin as opportunists
• OPPORTUNIST

  Without any designated organizational ownership or resources, corporate entrepreneurship proceeds (if it does at all) based on the efforts and serendipity of intrepid “project champions” — people who toil against the odds, creating new businesses often in spite of the corporation.
• OPPORTUNISTSa

  the company has no deliberate approach to corporate Entrepreneurship.

  Internal and external networks drive concept selection and resource allocation. Example Zimmer
• ENABLER

  the company provides funding and senior executive attention to prospective projects. Example: Google
• The Producer

  the company establishes and supports a full-service group with a mandate for corporate entrepreneurship. Example: Cargill
• ADVOCATE

  the company strongly evangelizes for corporate entrepreneurship but business units provides the primary funding. For example: DuPont
• enabler model is that employees across an organization will be willing to develop new concepts if they are given adequate support
• the advocate model, a company assigns organizational ownership for the creation of new businesses while intentionally providing only modest budgets to the core group.
• As with the enabler and advocate models, an objective is to encourage latent entrepreneurs
• producer model also aims to protect emerging projects from turf battles, encourage cross-unit collaboration, build potentially disruptive businesses and create pathways for executives to pursue careers outside their business units.
• The producer model is not without its share of challenges and risks.

  •First, it can require significant investments over many years.

  •Second, integrating successful projects into established business units can be difficult.

  •Ultimately, building credibility and trust throughout the company is critical for the producer model to succeed.
• Selecting the Right Model Evolving from the opportunist model to any of the more deliberate forms of corporate entrepreneurship typically begins with a mandate for growth and a broad, clearly communicated vision.
• When a company’s vision for growth is too narrow, it will likely end up with just incremental concepts, whereas a broader vision helps everyone think outside the proverbial box.
• Three Deliberate Approaches to Corporate Entrepreneurship

  
• the opportunist model, corporate entrepreneurship proceeds (if it does at all) based on the efforts of “project champions” who toil against the odds, creating new businesses often in spite of the corporation
• In the enabler, advocate and producer models, corporate entrepreneurship is actively managed but in different ways.
• Enabler programs can support efforts to enhance a company’s culture
• For companies that want to accelerate the growth of established divisions, the advocate model might be the best option.
• If a company seeks to conquer new growth domains, discover breakthrough opportunities or thwart potentially disruptive competition, then it should consider the producer model
• Putting the Models to Work Successful companies typically start with a small, credible team and a mandate from top leadership (see “Getting Started”). The first task is to obtain consensus (or at least acquiescence) from senior
• Getting Started For companies that are about to embark on a new program of corporate entrepreneurship, the following high-level summary of tips should provide some guidance:
• Point the way. Articulate a strategic vision for growth consistent with the capabilities that corporate entrepreneurship can leverage: too narrow and a company will get more of the same; too broad and people won’t know where to start. When everyone knows what they’re looking for, they’re more likely to find it.
• Neutralize the naysayers. Build corporate and divisional leadership consensus through extensive communication. Understand the motivations of vested interests and determine how to collaborate with or mitigate the opposition.
• Select and support a corporate entrepreneurship model. Companies need to select the right model (enabler, advocate or producer), develop a team with the required capabilities and provide the necessary resources.
• Evolve.

  Successful corporate entrepreneurship requires adaptation in order to generate self-sustaining new businesses on a consistent basis.
• An enabler model depends on establishing and communicating simple, clear processes for selecting projects, allocating funds and tracking progress, all with well-defined executive involvement.
• Advocate models require individuals with the instincts, access and talent to navigate the corporate culture and facilitate change.
• The producer model requires considerable capital and staffing and a direct line to top management.
• Whatever model is selected, a set of “quick wins” will help tremendously to garner initial lessons and build credibility and momentum.
• If all goes well, the organization should experience a significant increase in the number of proposals, but the challenge of growth is not simply about generating compelling opportunities.