Une nouvelle façon d'entreprendre : l'intrapreneuriat !

Olivier Witmeur

15 février 2011Cercle du Lac

AGENDA

1. What are we talking about? Entrepreneurs vs Managers?2. Individual challenges : Entrepreneurs vs Intrapreneurs.3. Building the Entrepreneurial Organization.

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Peter Drucker (USA), 1985 “Today’s businesses, especially the large ones, simply will not survive in this period of rapid change and innovation unless they acquire entrepreneurial competences”

Did you know?Http://www.youtube.com/watch?v=lUMf7FWGdCw

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Entrepreneurs vs Managers ?

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• Howard Stevenson (USA, 1983): A Perspective on Entrepreneurship.

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Traditional vs Entrepreneurial Management(Adapted from H. Stevenson)

ENTREPRENEURIAL TRADITIONAL

Strategic Orientation

Driven by perception of opportunity

Driven by resources currently controlled

Commitment to opportunity

Revolutionary with short duration

Evolutionary of long duration

Commitment of resources

Multistaged with minimal exposure at each stage

Single-staged with complete commitment upon decision

Control of resources

Episodic use of rent of required resources

Ownership or employment of required resources

Management structure

Flat with multiple informal networks

Formalized hierarchy

Reward philosophy Value-drivenPerformance-basedTeam-oriented

Security-drivenResource-basedPromotion-oriented

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• Saras Sarasvathy (India, 2008): What Makes Entrepreneur Entrepreneurial.

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Managerial Thinking Causal ReasonningSelecting between given means to achieve a predefined goal

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Strategic Thinking Creative Causal ReasoningGenerating new means to achieve pre-determined goals

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Entrepreneurial Thinking Effectual ReasoningImagining possible new ends using a given set of means

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Causation vs Effectuation

Causal Logic:• To the extent we can predict the

future, we can control it.

• Useful when:– The future is uncertain, but knowable– Goals are clear, but ways to achieve

them are not so– The environment is reasonably well-

structured, but largely outside our control

Effectual Logic: • To the extent we can work with

things within our control, we don’t need to predict the future.

• Useful when:– The future is not only uncertain, but

also unknowable(Knightian Uncertainty)

– Goals are ambiguous, but means are clear and limited

– The environment is unstructured, but subject to shaping by human action

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From Causation to Effectuation ……and Vice-Versa

TIME AND EXPERIENCE

LOGIC

Causal

Effectual

Novice entrepreneur

Expert entrepreneur

Start-upfirm

Largefirm

Shift in logic necessitated byfirm growth

Entrepreneurs do not always manage to bridge this gap

Moderating effect of

resources

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Cognitive Distribution ofManagerial and Entrepreneurial Thinking

Effectual

Causal

LowLow High

High ExpertEntrepreneurs

ExperiencedVCs

Angels

OrganicGrowthLeaders

CorporateManagers

NoviceVCs

NoviceEntrepreneurs

EntrepreneurialLarge Firms

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Entrepreneur vs Intrapreneur.

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Entrepreneurs and Intrapreneurs

Owner-Managerin Small Firms

Managersin Large Firms

Entrepreneurs

LifestyleEntrepreneurs

Intrapreneurs

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Entrepreneurs vs Intrapreneurs

ENTREPRENEUR INTRAPRENEUR

Ownership Yes No (employee)

Decision power Unlimited as long as shareholders agree

Hierarchy

Incentive Overall Limited: Bonus, SOP…

Risk Large, i.e. may include personal assets

Job reputation

Strategic Freedom Full To be aligned with the corporate agenda

Type of activity Ex-nihilo creation Strat with existing organizational support

Sponsors Stakeholders Corporate Management

• Adapted from Basso, 2004

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It is not only about ‘pure’ Entrepreneurship.

Entrepreneurial Management

Entrepreneurship

Innovation

Creativity

Strategy

Culture

Marketing

Leadership

Knowledge Management

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Building the Entrepreneurial Organization

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Corporate Entrepreneurship Challenges

• Entrepreneurial culture / values• Recruit, Develop & Retain entrepreneurial people• Leadership skills

• Pace of change is accelerating Need to renew• Core vs non-core activities• Breakthrough innovation

• Develop an organization that is entrepreneurship friendly

CULTURECULTURE

STRATEGY(Vision)

STRATEGY(Vision)

ORGANIZATION(Tactics)

ORGANIZATION(Tactics)

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Entrepreneurial Values and Behaviours

• Adapted from Burns, 2008

Change is normal

‘Can do’

Trials & Errors

Opportunistic

‘Work is Fun’ Celebrate Success

CreatityInnovation

Self confidence

Network and Sharing

Learn frommistakes

Optimism

Long term impacts

AchievementMulti-

disciplinarityTeam

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Entrepreneurial Orientation

• Danny MILLER (Canada)

• Entrepreneurial Orientation (EO) as one dimension of strategy definition– Risk Taking– Proactiveness– Innovativeness

• EO Performance(even more true in turbulent environment)

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Organizational framework for Internal Venturing

Strategic Importance

Very important Uncertain Not important

Operational relatedness

Unrelated Special BU Special BU Spin-off

Partly related New department New department Contracting

Strongly related Direct Integration New department Contracting

Adapted from Burns, 2008

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Typical Support Initiatives

• Internal incubators Validation and seed financing= isolated structure inside the firm

• Spin-off creation

• Internal Evangelists Promote entrepreneurship inside the firm without any specific supporting structure

• Corporate Initiatives Integrated inside the core value of the company= Free time for innovation, project-based organization…

• Corporate Venture Capital (CVC)= A way to learn from the outside

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• Olivier Witmeurolivier.witmeur@solvay.eduT. +32.2.650.65.65 - M. +32.475.68.62.5042 av. F. Roosevelt - CP 114/1, 1050 Brussels, Belgiumwww.olivier-witmeur.net

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