Intrapreneurship and Corportate Venturing

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PART 2 LEADING AND MANAGING THE ENTREPRENEURIAL
ORGANISATION
CHAPTER 8 Intrapreneurship and Corportate
Venturing
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Influences on Organisational Architecture
Environment
Culture
Architecture
Strategy
Leadership
Structure and size
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Structures to Encourage Entrepreneurship

• Intrapreneurship
• Corporate Venturing
• Bring the market inside spin offs etc.

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Intrapreneurs

• Goal orientated
• Ambitious
• Competitive
• Questioning
• Self motivated
• Dislike bureaucracy
• Comfortable with change
• Adept at politics
• Good at resolving conflict
• Able to work with others

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Needs of Intrapreneurs

• High level sponsor
• Space to break the rules
• Slack to pursue project
• Motivation to pursue project
• A culture that tolerates intrapreneurship

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10 Commandments of Intrapreneurship

1. Come to work prepared to be fired
2. Get round orders that stop your dream
3. Do anything, regardless of your job description,
   to make your project work
4. Build a network of people to help
5. Build the best team motivated flexible
6. Work underground as long vas possible
7. Be loyal truthful to your sponsor
8. Its better to ask forgiveness than permission
9. Be true to your goals, but be realistic
10. Own the project always persevere

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Encouraging Intrapreneurship
BASIC FACTORS
INTRAPRENEURIAL FACTORS
Regular pay, job security
Promotion, autonomy, slack, responsibility,
recognition, bonus
REWARD
MANAGEMENT SUPPORT
Commitment
Sponsors
Finance materials
RESOURCES
Knowledge resources
Corporate venturing, cross functional teams,
external networks, internationalisation
ORGANISATIONAL STRUCTURE
Hierarchy
Tolerance of lower risks
No penalisation
RISK
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Organising New Venture Developments
Special Business Unit
Independent Business Unit
Complete Spin-off
Unrelated
New Product Business Department
New Venture Division
Operational Relatedness
Partly related
Contracting
Micro New Business Department
Nurturing and Contracting
Direct Integration
Very related
Very important
Uncertain
Not important
Strategic Importance
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Corporate Venturing

• Key to success is good strategic fit
• Strong relationship with core competencies of
  venturing company - effective synergy
• or
• Acquiring skills, technologies or customers that
  compliment the strategic direction of venturing
  company - effective knowledge transfer

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Advantages of Corporate Venturing

• Facilitates innovation and knowledge import
• External sources of finance may be easier to
  access
• Facilitates creation of semi-autonomous units
  with their own cultures, incentives and business
  models
• Often involves highly motivated staff

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Disadvantages of Corporate Venturing

• Requires investment, normally equity, which can
  be risky
• Requires investment in venture mechanisms that
  set up venture management and networks that
  search out, evaluate and generate deal flows
• Investing company will not be in complete control
  of innovation