1. Assessing Entrepreneurial Performance

2. E  Managers must assess and track entrepreneurial activity and outcomes  Attention must be devoted to evaluate individual projects as well as the organization as a whole  Managers need to assess:  Cognition (way of thinking)  Behavior (way of acting)  Firm Performance (profits, revenue growth, etc.)

3. E Managers must evaluate their current entrepreneurial intensity (EI) before developing strategy for entrepreneurship or designing the internal environment Measurement at the individual level helps managers: Examine and refine their own leadership styles Examine and refine their own leadership styles Measurement at the organizational level: Mark and track company-wide entrepreneurial performance, establish norms and draw industry comparisons Mark and track company-wide entrepreneurial performance, establish norms and draw industry comparisons

4. E A three stage Entrepreneurial Health Audit, developed by Ireland, Kuratko, and Morris, attempts to measure entrepreneurship within a company

5. E  Step 1: Assessing the Firm’s Entrepreneurial Intensity (EI)  Table 13-1 includes a proven measurement instrument for assessing EI within a firm

6. E  Step 2: Diagnosing the Climate for Corporate Entrepreneurship  The Corporate Entrepreneurship Climate Instrument (CECI) Table 13-2 is a diagnostic tool for assessing, evaluating, and managing the internal environment of the firm in a manner that supports entrepreneurship

7. E  The Elements: 1. Management support Willingness of management to support ENT behaviors Willingness of management to support ENT behaviors 2. Work discretion/autonomy Top management’s ability to tolerate failure, delegate authority, macro-manage, etc. Top management’s ability to tolerate failure, delegate authority, macro-manage, etc. 3. Reinforcement Using systems that reinforce ENT behavior Using systems that reinforce ENT behavior 4. Time availability Ensure individuals have time to pursue new ideas Ensure individuals have time to pursue new ideas 5. Organizational boundaries Clear expectation of outcomes Clear expectation of outcomes

8. E  Step 3: Create an organization-wide understanding of the CE/Innovation process  The entrepreneurial experience  Entrepreneurial breakthroughs  Innovative thinking  Idea acceleration process  Barriers, facilitators, and triggers to entrepreneurial thinking  Sustaining innovation teams  The Corporate Venture Plan

9. E  The New product or service development process usually does not evolve neatly  However, there are key steps that generally must be accomplished to produce a commercially viable new product, service, or process Idea Generation Concept testing Technical feasibility assessment Product testing Financial assessment Test marketing Launch Life cycle management

10. E  Companies can become overwhelmed with too many metrics. However, the more typical problem is too few performance measures  The Yellow Light Variables Approach developed by Balachandra, identifies 14 variables that were critical in all “go/no go” decisions by managers  Less than 11 “yes” answers may spell trouble  Other “right” questions on p. 378-379

11. E  An effective corporate venture plan will: Describe every aspect of a particular ventureDescribe every aspect of a particular venture Include market researchInclude market research Clarify and outline financial needsClarify and outline financial needs Identify potential obstacles and alternative solutionIdentify potential obstacles and alternative solution Establish milestones for continuous and timely evaluationsEstablish milestones for continuous and timely evaluations Serve as a communication tool for all assessments purposesServe as a communication tool for all assessments purposes

12. E  Table 13-6 lists several helpful hints for developing a corporate venture plan  Table 13-7 lists the components of a comprehensive corporate venture plan

13. E  Sustainable innovation is the goal of the ENT firm  Difficult and requires commitment and discipline  Companies can approach improvement in one of two ways, together  Constant incremental improvement  Radical innovation