The importance of entrepreneurship to hospitality organisations and beyond ‘... an entrepreneurial approach is no longer seen as an option but as the only option for managers seeking to enhance the performance of their organisations.’ Wickham (2004) The importance is demonstrated from theory, business practice, organisations, awards, events and from people's opinions.
A practitioner view “Entrepreneurship is critical to the hospitality sector as with rapidly changing consumer demands and expectations, constant innovation by businesses is vital to meet and, hopefully, exceed these evolving demands and expectations” Rob Bailey, Director of Five Lines Consulting and previously Senior Manager, KPMG - Tourism and Leisure Advisory Services (2005).
And another view "….. entrepreneurs, in the hospitality and leisure industries, have influenced and pushed back the boundaries of our social world; for example, imagine not being able to take a low cost flight, stay in a budget hotel or eat a cheap meal. Entrepreneurs are the life blood of the hospitality and leisure industries, trail blazers whom take calculated risks, not unnecessary ones, to bring to the masses something new and unique, adding interest and colour to our lives''. Leslie Bailey, Senior Director, Menu Solutions, McDonald's Corporation - Asia Pacific, Middle East & Africa (2005)
A 'Bushism' and the origin of 'entrepreneur' The problem with the French is that they don't have a word for entrepreneur (George W. Bush discussing decline of French economy with British Prime Minister Tony Blair) Richard Cantillon, an Irish-French economist, coined the term entrepreneur and advanced its usage circa 1730.
AGENDA The Changing Global Economy The changing landscape The War on Talent Sustaining Customer Satisfaction Four Key Issues
Change happens - we had better be prepared for it! http://vimeo.com/1758558
Towards sustainability - issues to contemplate Dematerialisation - doing more with less Energy Efficiency Equipment Buildings Control Systems Renewable Energy Sources Efficient Resource Utilisation/Waste Reduction
Towards sustainability and consumer food taste shifts - issues to contemplate Processed Natural/Fresh Standardised Different/Diverse Global Foods Local Tastes Biotechnological Organic/Authentic Factory/Intensive Environmentally Sustainable
The future university sector More branding More Chinese customers More technology More globalised More polarised and value driven (Johnson, 2011)
AGENDA The Changing Global Economy Towards a Sustainable Future Understanding entrepreneurship Sustaining Customer Satisfaction Four Key Issues
The DNA of an entrepreneur Alert to opportunities Anxiety Creativity Decisiveness Easily bored Independent nature Inner focus of control Innovatory tendency Need to achieve Risk taking propensity Self-confidence Self-motivation Versatility Vision Self realization through action
An entrepreneur 'always searches for change, responds to it, and exploits it as an opportunity' Peter Drucker
AGENDA The Changing Global hanging Global Economy The Changing Global Economy The War on Talent But what about the I's? BurtFour Key Issues
The I's! - The entrepreneurial priorities Intrapreneurship Identifying opportunities Innovation - Ideas, Implementation Inspirational leadership Individual contributions and incentives Improved performance
What is intrapreneurship? It is the act of behaving like an entrepreneur, except within a larger organization. An intrapreneur focuses on innovation and creativity and transforms a dream or an idea into a reality, by operating within the organizational environment. Intrapreneurs embody the same characteristics as the entrepreneur and think the same way by seeking out opportunities, which benefit the organisation.
Ideas: Does your organisation have a low sperm count? "The best way to have a good idea is to have a lot of ideas." — Dr. Linus Pauling You need 1,000 crazy ideas to find one or two that will change your company. If you have 6 million sperm trying to find one egg and one succeeds, you do not worry too much about the 5,999 million that do not make it. Too many organisations suffer from a low corporate sperm count (Gary Hamel, 2002).
Inn0vation: The core of intrapreneurship "Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being learned and capable of being practiced. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation." — based on a quotation from Peter Drucker
McDonald's Jeff Stratton, Chief Restaurant Officer Innovation philosophy: "We drive innovation by putting customers at the heart of all. Inspired innovation starts with our commitment to better meet their needs in areas such as speed, accuracy, taste, and convenience. What our customers think, feel, and experience under the Golden Arches inspires me and my team as we push forward fresh ideas and concepts for McDonald's." “Innovation distinguishes between a leader and a follower.” Steve Jobs, Apple
Personal involvement with innovations Incremental 'doing what we do better' Radical 'new to the organisation' Product - MSc International Hospitality Design and Management Consultancy for FCSI Process- Cook-Chill System at London Hospital, Whitechapel Event - Annual National Hospitality Student conference (CHME) Organisation - Eat Sheffield (Sheffield Business School)
Dimensions of innovation DimensionDefinitionExample OfferingsDevelop innovative new products or services Chilled foods; Japanese style conveyor belt method of delivery PlatformUse common components or building blocks to create innovate offerings Menus in Chinese restaurants SolutionsCreate integrated and customised offerings that solve customer problems Paypal online payment system Customer experienceRedesign customer interactions across all touch points High street banks front-of-house ProcessesRedesign core operating processes to improve efficiency and effectiveness Fast-food production line processes OrganisationChange form, function or activity scope of business Contract catering to facilities management PresenceCreate new distribution channels where offerings can be bought Mobile phone apps purchasing Supply chainThink differently about sourcingBuying consortia
Internal constraints to intrapreneurship and innovation Unsupportive organisation Culture/habits e.g. 'profit now' syndrome Excessive formalisation Time, resources, incentives Fear of failure Resistance to change What are the barriers in your organisation?
General guidelines for a conducive climate for intrapreneurship Psychological security -separate innovative failure from personal failure Continued stimulation Unobtrusive authority/minimise coercive power Flexible time and resource framework
So in the end …. The past is a foreign country they do things differently there (LP Hartley, 1953) Today is yesterday's pupil (T. Fuller, 1660's) The empires of the future are the empires of the mind (W. Churchill, 1943) So don't be frightened of the future, imagine it, prepare for it and remember the I's.
PROF STEPHEN BALL CUBO CONFERENCE 24TH JUNE 2011 HTTP://WWW.SHU.AC.UK/SBS/RESEARCH /CTHER/STAFF/SP_STEPHEN_BALL.HTML The I's have it! ENTREPRENEURIAL PRIORITIES FOR HOSPITALITY AND RELATED ORGANISATIONS Author of chapter 'Entrepreneurship in Hospitality' in forthcoming book: SAGE Key Concepts in Hospitality Management Fast-food operations and their management editor, Stephen D. Ball.
Entrepreneurs can change the world! http://www.youtube.com/watch?v=T6MhAwQ64c 0&feature=related http://www.youtube.com/watch?v=T6MhAwQ64c 0&feature=related