Presentation on theme: "Internal Entrepreneurship at the Dow Chemical Company Case"— Presentation transcript:
1 Internal Entrepreneurship at the Dow Chemical Company Case BA 560Fall, 2005Prof. Dowling
2 “If you always do what you’ve always done, you’ll always get what you’ve always gotten.”
3 What is the genesis of the epoxy.com project? Class Question:What is the genesis of the epoxy.com project?
4 Class Question:What were important skills, characteristics and abilities of Ian Telford prior to the e-epoxy.com venture?
5 How did you vote on the request from Telford for $100,000? Class Question:How did you vote on the request from Telford for $100,000?
6 Case Question #1If you had been a member of the ELT in November 1999 when Ian Telford asked for initial funding of $100,000, would you have voted ‘for’ or ‘against’ providing the funding? Your answer needs to focus on why you voted for or against.
7 Case Question #1 -- Class Discussion Questions What are the arguments for funding the $100,000?What are the arguments against funding the $100,000?
8 Additional Class Discussion Question Given the number of reasons against Telford’s venture, why did Vermaak approve the project?
9 Case Question #2What is your evaluation of Ian Telford, the internal (corporate) entrepreneur? Make your evaluation criteria clear.
10 Case Question #2 -- Class Discussion Questions What evaluation criteria should be applied to Telford?Based on these criteria, how did you evaluate Telford?
11 Case Question #3How would you judge the performance of the corporate sponsors (within Dow Chemical) of Telford’s project? Focus on the top 4 or 5 key issues/factors. Make your evaluation criteria clear.
12 Key Sponsor Issues/Factors HR development:Encourage & reward entrepreneurial activitiesIdentify potential entrepreneursMatch the right opportunity with the right entrepreneurEmpower but also be hands-on as coach and mentorPlan personal development of entrepreneurs
13 Key Sponsor Issues/Factors Execution Skills:Ensure integrity of the projectPersonal belief and public support of the concept (‘skin in the game’)Set tough but realistic goals, budget & scheduleDemand resultsTolerate ‘idea’ failures
14 Key Sponsor Issues/Factors Political skills:Sell upwards effectivelyKey linkage to corporate resources: financial, HR, timeProvide political coverProvide exposure and career building opportunities for internal entrepreneursProvide project leadership/sponsorship continuity
15 Case Question #4What are the ‘lessons learned’ from the performance of Ian Telford that would be helpful to you as a potential internal (corporate) entrepreneur?
16 Class Discussion Question What are the key ‘lessons learned’?How might these lessons be applied to other situations?What caution should be exercised in applying these lessons to other situations?
17 Application to Other Situations … The engine for internal growth is the internal entrepreneurInternal entrepreneurs need to be developed/hired, nurtured, and rewarded commensurate with resultsThe internal entrepreneur needs a network to function effectively. This social capital needs to be built/earned. It cannot easily be imported from outside.
18 Application to Other Situations … “Small wins” encourage others to become more entrepreneurialSponsors are key to success; more importantly sponsors and entrepreneurs need to be matched proactivelyThe most critical variable in creating a long-term environment for internal entrepreneurship is a supportive organizational context set by top execs in the firm
19 Cautions ...Sponsors come and go during a new internal venture; the successful entrepreneur needs to carefully cultivate new support for the venture over time as key players change (as Telford did)Corporate growth can be top down driven or bottom-up (organic). Organic growth is almost impossible without a supportive culture and top management leadership
20 Characteristics of Effective Internal Entrepreneurs Personality Traits:IntegrityPolitical savvyHonest about mistakes; takes feedback from sponsorsShares creditBreaks rules but always stays true to the corporate vision and values
21 Characteristics of Effective Internal Entrepreneurs Experience:Established track record; brings credibility and social capitalLong tenure within firm helpsGeneral manager not a narrow expert; ability to think laterally
22 Characteristics of Effective Internal Entrepreneurs Behaviors:Ability to discover a profitable value propositionAbility to communicate and market the value proposition; energy & passionAbility to mobilize resources; networking abilityAbility to assemble and motivate a team of experts.
23 Characteristics of Effective Internal Entrepreneurs Behaviors:Ability to deliver resultsAbility to take informed risks, make timely decisions, and be unafraid of consequences of breaking the rules and the possibility of failureAbility to ramp up (execution skills) or pull the plug (provide career ‘escape routes’ for team members)