Diplomarbeit zur Erlangung des akademischen Titels Diplom ... Publico/Estudos... ·...

Diplomarbeit zur Erlangung des akademischen Titels Diplom-Wirtschaftsingenieur (FH)

“Development of the structure for an operation-handbook for theincubation-centre of the Instituto Nacional de Telecomunicações”

in summer term 2000

Reference: Prof. JägerHead of the Curriculum of Technical Administration

University of Applied Technology Esslingen

Prof. KluckHead of the Curriculum of Economical Engineering

University of Applied Technology Esslingen

Instituto Nacional de Telecomunicações:INATEL (Instituto Nacional de TelecomunicaçõesAv. João de Camargo, 510CEP 37540-000 Santa Rita do SapucaíBrazilPhone: ++55-(0)35-471-9200Fax: ++55-(0)35-471-9314email: [email protected]: http://www.inatel.br

Author: Gerd SeiboldRua Antonio Paulino 243

37540-000 Santa Rita do Sapucaí, MG, BrazilWI 8, Mat. Nº. 682106

Preface Gerd Seibold

I

PREFACEWe are looking up to big, multinational companies as Microsoft, AT&T or Daimler-

Chrysler with production-sites world-wide and turnovers that even exceed the Gross

Internal Product of several countries. One side of this coin called “notices about

multinationals” are these breath-taking numbers showing the success for their

shareholders. The other side very often tells about the necessary dismissal of

hundreds of employees, and the increasing numbers of fusion and taking-overs even

push this trend.

Although small and medium sized enterprises (SME) can’t show these high

turnovers their importance should not be underestimated, as they tend, in the case of

successful start up, to supply jobs instead of dismissing people. The report J.M.

Rocha of he SEBRAE e.g. shows that the SME, although yielding just 30% of the

GNP of Brazil with 43% of the produced goods, supply 60% of the jobs and pay

42% of the salaries in this striving country.1

An other function of these SME, explaining their importance for any economy

further is, that they form a subcontractor base necessary for a.m. bigger companies

mainly in the automotive and electronics industry.

By showing the importance of these SME as well the importance of incubation-

centres (ICs) is reasoned, as their aim it is to help engaged people to found their

companies, which of course at the beginning don’t start off as a multinationals.

The IC of INATEL is inherited by the spirit of improvement, as the IC’s personnel

know about the relation between their performance and the success of the incubation

process of their candidates’ companies.

One seed of the efforts of the people of the incubation-centre of INATEL to improve

their performance was the perception of the need of an operation handbook and a

system of observation of their candidates’ performance. This need enabled me to

elaborate a solution in a type of institution, the incubation-centre, that here in Brazil

as there in Germany is a relatively new type of organisation which step by step is

confronted with a.m. questions every growing company faces.

1 J.M. Rocha of the SEBRAE-MG, Presentation given 04.05.2000, Belo Horizonte, 2000, mentionedin the classes of the 7th and 10th semester at INATEL


II

Further a remark on the quality of the translations to be found in the text, considered

to be necessary to be given:

All the translations be it from German or Portuguese to English were made by the

author on his own. Exceptions are marked with the name of the translator.

Here as well is time and place to thank all the persons enabling this piece of work

here in Brazil. This is the Instituto Nacional de Telecomunicações (INATEL) in

person of Prof. Mario Augusto de Sousa Nunes, Co-ordinator of the Núcleo de

Empreendedorismo (NEMP) of INATEL for the interesting and challenging project,

the confidence in my performance and the encouraging feedback he offered. MR.

Rogerio Abranches da Silva, the Manager of the IC who showed me the praxis of

incubating when theory dominated my ideas. Mrs. Ignácia Christina Ribeiro who

always found a “jeito” (knack) when facing the difficulties in Brazilian live.

I’d further like to thank to two economic-professors, to Professor Luiz Antônio Cury

of the FACEM (Faculdade de Ciências Econômicas do Sul de Minas, Faculty of

Economical Sciences of Southern Minas Gerais) and to Professor Durval of the FAI

(Faculdade de Administração e Informática, Faculty of Administration and

Informatics), which confirmed our way with the iindicators for the incubated

companies and gave valuable inputs to this concern.

Then Prof. Rainer Doster of the faculty of Telecomunication of the University of

Applied Technology in Esslingen, who kindly used his relationship to INATEL in

order to enable me to get a project in INATEL. Further Dipl. Ing. Dirk Twelsiek of

the Institut für Projektplanung (IP, Institute for Project Planning) on behalf of the

Deutsche Gesellschaft für Technische Zusammenarbeit GmbH(GTZ, German

Society for Technical Co-operation) who helped to define the project.

Further my referents Prof. Dr. Norbert Jäger, Head of the Curriculum of Technical

Administration, University of Applied Technology Esslingen and Prof. Dieter Kluck,

Head of the Curriculum of Economical Engineering, University of Applied

Technology Esslingen, for their patient help and their readiness to accept this project

in Brazil.


III

For their support concerning administrative affairs in Germany I’d like to thank to

Mrs. Breuer and Mrs. Hinderberger of the University of Applied Technology

Esslingen.

And as well my fellow student and friend Jürgen Baur and my old friend Manfred

Lohrmann, who helped me a very lot to deliver this thesis in time.

Last but not least everybody who contributed in any possible way to the performance

of this thesis or had to endure any burden caused by my work.

List of Contents Gerd Seibold

IV

LIST OF CONTENTS

PREFACE ....................................................................................................................... I

LIST OF CONTENTS.................................................................................................. IV

TABLE OF DIAGRAMS AND TABLES..................................................................VII

LIST OF ABBREVIATIONS ................................................................................... VIII

1. Introduction ...........................................................................................................1

2. Presentation of Brazil............................................................................................2

2.1. Brazil in general ................................................................................................2

2.2. Political and economical development of Brazil...............................................3

2.2.1. 1500-1930 – The agricultural period of Brazil:.................................................4

2.2.2. 1930-1990 – The process of industrialisation by substitution of importation:..8

2.2.3. The nineties – economical aperture.................................................................13

2.3. The actual economical situation of Brazil .......................................................15

2.4. The importance of small and medium enterprises (SME) for the Brazilian

economy .....................................................................................................................17

3. Presentation of the incubation-centre of INATEL .............................................19

3.1. The work of an incubation-centre in general..................................................19

3.2. The IC of the INATEL ...................................................................................21

3.2.1. The organisational chart .................................................................................21

3.2.2. The finances of the IC ....................................................................................27

3.2.3. Special condition reasoned by the connection to INATEL............................28

3.2.4. Special condition reasoned by the localisation in Santa Rita do Sapucaí, the

“Electronic Valley” ....................................................................................................29

3.3. Organisations linked to the incubation-centre................................................30

4. Development of the topics of the thesis .............................................................35


V

5. Development of the structure of an operation handbook ...................................36

5.1. Gathering information about the needed contents for an operation handbook ..

........................................................................................................................37

5.2. Recording of the currently performed tasks of the incubation-centre............40

5.3. Structuring the tasks by the synthesis of basic and current tasks ...................41

5.4. Forming the final operation handbook for the incubation-centre...................43

5.4.1. General information about the incubation-centre...........................................44

5.4.2. The core-task of the incubation-centre of INATEL .......................................46

5.4.3. Auxiliary-tasks of the incubation-centre ........................................................52

5.4.4. Frame tasks of the incubation-centre..............................................................55

5.5. Structuring the processes by introducing an algorithm ..................................57

5.6. Result as seen in the appendix........................................................................58

6. Development of a system of observation and evaluation of the incubated

companies ...................................................................................................................59

6.1. Why observation is felt as necessary..............................................................59

6.2. How this observation could be performed......................................................61

6.2.1. How literature would perform observation ....................................................63

6.2.2. The “DuPont-System of financial control” ....................................................66

6.2.3. The RL or Rentabilitaets-Liquiditaets-System of T. Reichmann and L.

Lachnit........................................................................................................................68

6.2.4. The ZVEI system............................................................................................70

6.2.5. Brown and the aspect of target orientation.....................................................71

6.3. What shall be observed in the incubated companies ......................................72

6.3.1. Selection of indicators for the system ............................................................74

6.3.2. Setting of targets for the indicators. ...............................................................82

6.3.3. Evaluation with the indicators and the targets................................................86

6.4. Forming the process of observation and evaluation of the incubated

companies ...................................................................................................................89

6.4.1. The half-yearly process of strategic planning ................................................89

6.4.2. The bimonthly process of performance control..............................................92

6.5. Final remarks on the system...........................................................................96


VI

7. Conclusion..........................................................................................................97

LITERATURE ...........................................................................................................XI

APPENDIX ............................................................................................................. A B

A1. Tree of Quality .............................................................................................A 1

A2. Calculation Formulas for the Indicators .......................................................A 2

A3. Target Values for the Indicators ...................................................................A 4

B. The final Structure of the Operation-Handbook with the elaborated Process of

Observation of the incubated Companies................................................................. B 1

List of Diagrams and Tables Gerd Seibold

VII

TABLE OF DIAGRAMS AND TABLES

Table 2.1: Growth in % of the Brazilian industrial companies until the end of WWI: 8

Table 2.2: Absolute growth of Brazilian industrial companies until the end of WWI: 8

Table 2.3: Inflation in Brazil in the years between 1977 and 1999 16

Diagram 3. 1: Organisational chart of FINATEL/INATEL 22

Diagram 3. 2: Finance sources of the IC 28

Diagram 5. 1: The core-task of the incubation-centre 51

Diagram 5. 2: The auxiliary-tasks 52

Diagram 5. 3: The frame-tasks 56

Diagram 6. 1: The DuPont-System of Financial Control 66

Table 6.2: Calculation of the credits of performance 88

Table 6.3: The half-yearly process of strategic planning 91

Table 6.4: The bimonthly process of performance control 95

Diagram A. 1 The Tree of Quality A 1

Table A. 2 The Calculation Formulas for the Indicators A 2

Table A. 3 The determined Targets for respective Indicators A 4

List of Abbreviations Gerd Seibold

VIII

LIST OF ABBREVIATIONS

a.m. Above mentioned

ABC Agencia de Cooperação Técnica do Ministério das Relações

Exteriores do Brasil, (Agency of technical co-operation of the

Brazilian Ministry of Exterior Relations)

ANPROTEC Associação Nacional de Entidades Promotoras de Empreendimentos

de Tecnologias Avançadas, (National Association of Promoting

Entities of Entrepreneurship of Advanced Technologies)

BEP Break Even Point

BP Business-plan

CIS Community of Independent States

COD Capability Of Delivery

COPPE Coordinação de Programas de Pôs Graduação em Engenhería (Co-

ordination of Post Graduation in Engineering)

http://www.coppe.ufrj.br/

CT Capital Turnover

e.g. for examle

EE Electrical Engineering

EOS Effort Of Sales

FIEMG Federação das Indústrias do Estado de Minas Gerais, (Federation of

the Industries of the State Minas Gerais)

FINATEL Fundação do Instituto Nacional de Telecomunicações (Foundation of

the National Institute of Telecommunication)

GIP Gross Internal Product

GTZ Deutsche Gesellachaft für Technische Zusammenarbeit GmbH,

German Society for Technical Co-operation Ltd.

HR Human Resource

i.e. id est (this is)

IC Incubation-centre

ICC Incubated company

IHK Industrie- und Handelskammer (industrial and comercial chamber)


IX

IHK Industie- und Handelskammer (Industry and Trade Chamber)

II Index of Inovation

IM Investment in Marketing

INATEL Instituto Nacional de Telecomunicações (National Institute of

Telecommunication)

IP Institut für Projectplanung GmbH (Institute for Project Planning Ltd)

IT Information Technology

L3 Liquidez 3

L4 Liquidez 4

LET Lead Time

MG Minas Gerais (name of an Brazilian State)

NEMP Núcleo de empreendedorismo (Nucleus of entrepreneurship)

OPHB Operation-handbook

PAT Profit after Tax

Pg. Page

PMSR Prefeitura Municipal de Santa Rita de Sapucaí (Mayor’s Office of

SR):

POT Profit as % Of Turnover

PUC Pontifíca Universidade Católica do Rio de Janeiro (Papal Catholic

University of RIO de Janeiro) http://www.puc-rio.br/

QOS Quality Of Sales

RL Rentabilität Liquidität (Profitability, Liquidity)

RMI Rede Mineira de Incubadoras, (IC Network of the Brazilian state

Minas Gerais)

RMO Ratio of Market-Occupation

ROH Range of Orders in Hand

ROI Return On Investment

RPE Ratio of Participation in Events

ROPPOC Ratio Own Price Price Of Competitors

RQ Rate of Qualification

SEBRAE Serviço Brasileiro de Apoio às Micro e Pequenas Empresas,

(Brazilian Service of Support of SME)


X

SME Small and medium sized Company

SR Santa Rita do Sapucaí

TC Telecommunication

TE Total Expenditure

TO Turnover

UFRJ Universidade Federal do Rio de Janeiro (Federal University of Rio de

Janeiro) http://www.ufrj.br/

GmbH Gesellschaft mit beschränkter Haftung (LTD, Limited)

LTD Limited

1. Introduction Gerd Seibold

1

1. IntroductionIn the past years there happened considerable changes in the Brazilian political live

and with this as well in the economical. In the last decades the political landscape

passed several times through republics and military dictatorships. In a period of

about one decade Brazil changed its currency 5 times. And actually after a period of

military dictatorship it is living through a period of political and thus economical

aperture.

The present elaboration wants to help to improve the performance of a so-called

incubation-centre (IC), namely the IC of the “Instituto Nacional de

Telecomunicações” (INATEL – National Institute of Telecommunications), by the

elaboration of a structure for an operation handbook, but as well by the development

of a process in order to observe the incubated companies. What an IC is and why it is

felt as needed will be explained further in the following chapters.

In order to link the both a.m. statements, that until now might appear as incoherent,

the elaboration of the thesis begins, in chapter 2 with an introduction of Brazil, its

economical and, as always linked to the economy, political history finishing in the

actual circumstances and the reasoning that SMEs (Small and Medium sized

Enterprises) are very important for the Brazilian industry. Then, in chapter 3, the

incubation centre, its importance for Entrepreneurship and SMEs and its position in

the “Instituto Nacional de Telecomunicações – INATEL” (National Institute of

Telecommunication) shall be contemplated.

The following steps will explain the needs of the IC of INATEL, beginning with

chapter 4, shortly introducing the development of the topic for this thesis, as there are

the need for an operation handbook, the realisation of which will be considered in

chapter 5, and of observation of the incubated companies, considered in chapter 6.

Thereafter, in chapter 7, a conclusion will be drawn and the determined structure of

the operation handbook and the completely determined task of observing incubated

companies will be displayed in the attachment.

2. Presentation of Brazil Gerd Seibold

2

2. Presentation of BrazilIn this chapter we first will contemplate general data about Brazil in order to get a

first impression of this country. Then the political and economical development of

Brazil will be studied in order to understand the actual situation in the country, which

states the need for SMEs in the Brazilian economical landscape.

2.1. Brazil in general

The writing of the history of Brazil, as we know it, begins: “On April 22nd 1500

Admiral [Pedro Álvares] Cabral (1467-1520) and his marines, …, took posses of

Brazilian soil for Portugal south of Porto Seguro [Bahia]” It is independent from

Portugal since, on 07.09.1822, Crown Prince Pedro declared the Brazilian

independence of Portugal and himself the new emperor of Brazil (, which was

approved by Portugal in 1825)1 Brazil, the country that celebrates its 500th birthday

this year is, with 8,547,404 km² of territory (which is about 24 times the size of

Germany which spreads over 357002 km²), the biggest country of the South

American continent and is situated at the 5th position of all of the countries on earth

(after Russia, Canada, the USA and the PR of China). It is frontier state with

Uruguay, Argentina, Paraguay, Bolivia, Peru, Colombia, Venezuela, Guyana,

Suriname and French-Guyana.2

Its full name is “República Ferdeativa do Brasil” (Federative republic of Brazil) and,

as it is a federative republic (since 1988), it is composed of states, 26 in order to be

correct, plus the Distrito Federal do Brasília (the Federal District of Brasilia) which

was created by president Jescelino Kubitschek artificially and forms the capital since

21st April 1960 (before it was Rio de Janeiro).3

Brazil’s biggest cities are São Paulo (São Paulo) with 9,839,100 inhabitants, Rio de

Janeiro (Rio de Janeiro) with 5,551,500 inhabitants, Salvador (Bahia) with 2,211,500

inhabitants and Belo Horizonte (Minas Gerais) with 2,091,400 inhabitants. The entire

country accommodates 165,156,000 inhabitants (about two times the number of

1 Poliglot APA Guide Brasilien , Langenscheidt KG, 1999, pg 26-27, 292 Spiegel Almanach, Weltjahrbuch 2000, Die Staaten der Erde Zahlen Fakten Analysen, Spiegel-Buchverlag, Hamburg and Hoffmann und Campe Verlag, 1999, pg. 127


3

Germany with 82,037,000 inhabitants), which mainly speak the languages of the

country, which is Portuguese and some native languages as Tupiguarani, but as well

other European languages are heard, as Italian, Polish or German.4

2.2. Political and economical development of Brazil5

The political and economical development of Brazil can be subdivided in three

periods of different extents.

The first period is coined by agriculture. The Portuguese Kings started to use Brazil

as granary and Brazil stayed an agricultural economy until our century. When in

Europe a the end of the XVIII century industrialisation started Brazil wasn’t able to

catch this train, there emerged the problem that Brazil had to import all the industrial

goods and thus accumulated high foreign debts.

This wasn’t bearable anymore an under Getúlio Vargas Brazil entered into its second

economical period, the period of the so-called “Processo de industrialisação por

substitução de importações” (Process of industrialisation by substitution of

importation) or short “Processo de substitução de importações” or even shorter PSI.

The aim of this process was to reduce importation and thus the foreign debts of

Brazil and at the same strike industrialise the country. This was managed by

implementing monetary and non-monetary trade barriers as importation taxes and

limitation of importation lots what on the other hand let to a lack of quality in

Brazilian products as result of lacking competence . Later in the period of the PSI,

when the Brazilian enclosure was loosened and foreign capital was permitted, the

3 Poliglot APA Guide Brasilien , Langenscheidt KG, 1999, pg 38, and Spiegel Almanach,Weltjahrbuch 2000, Die Staaten der Erde Zahlen Fakten Analysen, Spiegel-Buchverlag, Hamburg andHoffmann und Campe Verlag, 1999, pg. 1274 Spiegel Almanach, Weltjahrbuch 2000, Die Staaten der Erde Zahlen Fakten Analysen, Spiegel-Buchverlag, Hamburg and Hoffmann und Campe Verlag,, Hamburg, 1999, pg. 12 and 1275 Spiegel Almanach Weltjahrbuch 1999, Die Staaten der Erde Zahlen Fakten Analysen, Spiegel-Buchverlag,, Hamburg and Hoffmann und Campe Verlag,, Hamburg, 1998, pg. 10-11, 135-138,Spiegel Almanach, Weltjahrbuch 2000, Die Staaten der Erde Zahlen Fakten Analysen, Spiegel-Buchverlag, Hamburg and Hoffmann und Campe Verlag,, Hamburg, 1999, pg. 12-13, 127-129Poliglot APA Guide: Brasilien, APA Publications c/o Langenscheidt KG, München, pg 26-51Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000


4

problem of indebtedness and inflation that reached until 2596,0% in the year 1990

rouse.

President Collor de Mello (1990-1992) and more president Henrique Fernando

Cardoso (since 1994) opened in the 90ties the third period of Brazilian economical

history, the aperture of the country not just for foreign investors but as well for free

trade which aimed to reduce inflation, which was reached with the so-called “Plano

Real” (Real, the new currency of Brazil since 01.07.1994).

In the following lines these three periods shall be considered more explicit.

2.2.1. 1500-1930 – The agricultural period of Brazil:

Dourado or Brasil?

When Brazil was discovered in 1500, as a.m., it was discovered in order to bring the

same wealth to Portugal as the new Spanish colonies brought to Spain by the gold

found in America. But gold was not found until 1695 in that strange country that

needed a name. Thus in 1511 it received the name “ Terra do Brasil” - Land of the

Brasil(wood), which became, as it was base for a new red dye, the first export-hit of

Brazil.

Agriculture

During the royal dominion of first Portugal and later a proper Brazilian emperor the

Brasilian economy was built upon agriculture in mono-culture. It began , as we saw

with the Brasil-wood and was followed by the “ouro branco” – the white gold, as

sugar, unknown in Europe until that time, was called. Sugar, but as well other

agricultural products as tobacco and beef, was produced in Brasil from the XVI until

the XVIII century. The main problem faced in order to process agriculture was to

find work-force to do the linked work. This problem was resolved by two ways, first

the native population, the so-called “indigena” were enslaved, but as they were not

strong enough to survive in captivity already in 1532 the first African slaves were

deported to Brazil. This didn’t mean that the enslavement of indigena stopped. As

that time labour was the bottleneck of production the so-called “bandeirantes”

(standard-bearers) entered more and more into the vast continent in order to procure


5

this manpower and quasi as a by-product thus occupied territory for the Portuguese

crown.

Gold

During one of their trips in 1695 they as well crossed a state today called “Minas

Gerais” (general mines) and found there, as the name implies, gold, the material that

was looked for since the beginning of the colonisation of Brazil. Gold was the

dominating topic in the XVIII century in Brazil and the once high importance of

sugar and the other agricultural products was fading away.

Agricultural Renaissance - Coffee

As gold in the beginning of the XVIII century sealed the existence of agriculture as

dominating economical branch, the decline of this metal, newly allowed to flourish

agriculture in Brazil at the end of a.m. century. Although the production of sugar

wasn’t that important anymore during the gold-rush, it wasn’t stopped to be

produced. And at its side there were planted products as rice , cotton, indigo blue,

cacao and a kind of bean, that was to dominate the Brazilian economy from the

middle of the XIX century, when it outstripped cotton, until the beginning of our, the

XX century.

Coffee-crisis and industrialisation

Brazil’s function during the Portuguese dominion was to serve as a never ending

source of luxury goods as sugar, gold or coffee. Brazil on its own never was able to

develop as it always had to pay high taxes to Portugal. This situation wasn’t able to

be suffered by the Brazilian people for a long time without getting discontent, thus in

1789 the first uprising against the Portuguese crown by the “Inconfidência Mineira”

(Minas Geraisish Betray) took place in Ouro Preto because of the Portuguese ideas to

raise the gold-taxes.

In 1808 the Portuguese King João VI had to flee with his whole retinue of 15000

persons to Brazil because Lisbon was occupied by the French under Napoleon. When

he regressed to Portugal in 1821 he left his son Dom Pedro in Brazil. He saw the


6

desire of the country to be independent of the motherland in Europe and on

07.09.1822 he declared the independence of Brazil from Portugal and himself as new

emperor Pedro I of Brazil. The independence was recognised officially in 1825 by

Portugal. Under Dom Pedro II severe social changes were conducted. 1850 slave

trade was forbidden and the immigration of Europeans promoted, 1853 an

importation-stop for slaves imposed. In absence of Dom Pedro II princes Isabel 1871

signed the so-called “Lei do ventre livre” (Law of the free belly) which declared all

new-born children of slaves as free persons.

Although slavery, the base of the economy policy supporting agriculture, was

prohibited step by step and thus the base for this colonial way of agriculture shrunk

more and more, the economy policy for Brazil didn’t change as the lobby of the large

landed proprietors that was strong and thus able to represent the interests of this

agricultural oligarchy. Brazil was still based on agriculture in quasi mono-culture, at

the beginning of the XIX century on cotton and since the middle of the century on

coffee, as we heard above.

This contained two problems, the first is the dependence on the market of this single

product produced, here coffee. The second problem was that, as Brazil harvested

only agricultural products, thus the lack of capital goods had to be compensated by

importation of these goods that got more and more important in an industrialised

world. The railway, introduced in 1852, e.g. was needed in order to have faster and

more comfortable access to this vast country. But these industrial goods yielded

higher prices in the market as primary goods that were easily to be produced. The

money to make these expensive importation wasn’t always available and thus

industrial goods were bought on foreign credits, which augmented foreign debts and

thus dependence on these foreign countries.


7

This second problem wasn’t seen that clear, as it was hidden behind the persisting

success of the coffee, as Brazil at the end of the XIX century supplied ¾ of the world

demand of coffee.6

1st world economy crisis and coffee crisis

Since coffee is a luxury good it as well is the first thing you cancel of your shopping

list if you aren’t that well covered with money. This happened in 1873-1896 the

world economy crises started augmented in its effect on the coffee market by the

coffee super-production of the years 1880-1886. That time nobody was able to spend

money for luxury goods as coffee and so Brazil lacked income, but had its needs for

industrial goods. Thus the foreign debts grew further.

When in 1888, in the aftermath of the crises the parliament ordered the liberation of

all slaves it was to much for the large landed proprietors. 1889 they, with help of the

military under Marshall Fonseca, throw up the government of Dom Pedro II and

exiled him.

Although uncovered by these both crises the dependence on foreign imports, still

trusting in the power of coffee, wasn’t seen as a problem and ignored for the sake of

the agricultural oligarchy’s interest in selling coffee. Taxes were used in order to

protect the interests of these large landed proprietors. I.e. import taxes for products

that were of interest for the agricultural sector were lowered and taxes for the

importation of cotton and products that were produced by this interest group were

increased.

In 1891 Brazil received a republican and federal Constitution like the USA and

except of one president, the first republican president Marechal Floriano Peixoto the

aims of the agricultural oligarchy were represented. When in 1894 the first civil

president i.e. the first president of the so-called “Republica Velha” (Old Republic)

Prudente Morais governed the country, Brazil suffered, out of a.m. reasons, heavy

foreign debts. This problem was tackled by the second civil president Manuel Ferraz

6 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 68


8

de Campos Salles (1898-1902) which tried to restore the finances of Brazil and

achieved the country’s first foreign debt moratoria. A.m. taxes kept efficacy until

1934, protecting the interests of agriculture.

Because of these unfavourable conditions the Brazilian industry grew just

sporadically. The following data about the percentage of enterprises created in a

certain period of time were made by an inquiry in 19207:

Period % of created industrial companies

Until 1884 9,6 %

1884-1894 ~25,0 %

1905-1919 More than 55,0 %Table 2.1: Growth in % of the Brazilian industrial companies until the end of WWISource: Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, pg. 49

In absolute numbers this would be:

Year Absolute number of created industrial companies

1884 200

1889 600

1907 3200

1920 13300Table 2.2: Absolute growth of Brazilian industrial companies until the end of WWISource: Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, pg. 49

2.2.2. 1930-1990 – The process of industrialisation by substitution of

importation:

Already with this slow but steady growth of industrial companies, there emerged

something as a conscience of an industrial class. Indicators therefore are the

foundation of the so-called “Confederação Operária Brasileira” a kind of union in

1908, the foundation of the “Partido Comunista Brasileiro” (Brazilian Communist



9

Party) in 1922, the first Industrial Chamber in 1928 as part of the local Chamber

Commerce of São Paulo and the first proper Industrial Chamber in 1931.8

The second economical crisis and the Process of Substitution of Importation

About 50 years after the first world economy crisis there happened to appear the

second between 1929-1933. This crisis was the turning point in the Brazilian

economy. What couldn’t be reached after the first crisis between 1873 and 1896, this

time, based on a.m. appearance of the industrial class, was able to be managed. The

dominating product, coffee, stopped to determine the Brazilian economy and made

place for the industry.

This turn was sealed after the elections of 1930. Júlio Prestes, the candidate of the

agricultural oligarchy won the elections for president against Getúlio Vargas, the

candidate of the petty bourgeoisie. But the opposition refused to accept the results of

the selections and revolts passed through Brazil. Two weeks later the military won

control over the situation and this time took sides against the large landed

proprietors, supporting Getúlio Vargas and nominating him as interim president.

Vargas’ aim as candidate of the petty bourgeoisie was to stop the old economical

policy of the “Republica Velha” and to introduce industrialisation in order to fight

the old problems importation and foreign debts. “Economic historians and developers

of theories demonstrated that the advance of the industry in the later on industrialised

countries, as Germany, Japan and Italy, was just possible on the base of the

governmental action, in contrary to the experiences of the classical capitalist

industrialisation of England and France. ... Thus the only possibility of implementing

great industrial projects of the production good industry were based on the

governmental action, which exactly was the proposal of Vargas.”9

In other words Brazil had to be forced into the industrialisation by a governmental

project called “Processo de Industrialisação por Substitução de Importações”



10

(Process of Industrialisation by Substitution of Importation) or short PSI. The reason

why force was necessary is able to be seen in the recent Brazilian history, as Brazil

was importing already existing industrial products from Europe and the USA, as it

was less hassle in comparison to the efforts to be made in order to produce these

goods by themselves. What the state now had to do was to make it more difficult and

unprofitable to buy these goods in foreign countries what equals the closure of the

country in order to force the proper people to produce industrial goods.

The way how to attain this closure was twofold, firstly by the introduction of

monetary and secondly of non-monetary trade barriers, as e.g. high import taxes on

industrial goods or limitation of the number of goods allowed to be imported.

One factor supporting this aim of reducing importation was the World War II. All the

former supplier countries of industrial goods for Brazil were busy with producing

war material so that Brazil had to produce by its own.

When at October 29th 1945 Vargas was overthrown and his ex-Minister of Warfare,

general Eurico Gaspar Dutra, was elected as president for 5 years the politic of

industrialisation by substitution of importation and governmental interference was

continued, with less emphasis, but it was continued, and with success as able to be

seen at the development of foreign debts. When in 1947 the difference of payment

was US$ 313 millions the number for 1948 was US$ 108 millions.10

In 1950 Vargas became president again, this time by election, and succeeded with his

policy until his suicide on 24.08.1954.

When in 1955 Juscelino Kubitschek became president, Brazil gets with him a very

agile leader with clear ideas. It was him who created the new capital Brasilia in the

period between 1957 and 1960 and inaugurated it at the 21.04.1960. Kubitschek

declared the growth of economy as priority. He kept the country closed for

importation as Vargas did with his trade barriers but in contrary to Vargas’

9 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 75directly out of the Portuguese


11

nationalist project Kubitschek had a clear “yes” to foreign capital in order to push the

industrialisation, which was well accepted by the international companies that were

going global that time. Thus the Brazilian economy was dominated within short time

by these big multinational companies.11

Following the example of the plan economy of the socialist countries, that celebrated

big successes in that period, he introduced the “Plano de Metas” (Plan of Aims) that

contained 31 aims he wanted to fulfil in his term of office, all in order to support the

steel industry, petrol industry and the creation of infrastructure. That time the

Brazilian economy run well and achieved an annual growth of the GIP of 8,2%. 12

In the years between 1960-1980 Brazil performs the change from a country still

dominated by agriculture to one dominated more by industry, which is shown by the

fact that in the population of cities, where the industry is settled, augmented from

45% to 67% in that period. Brazilian economy becomes that strong, that one single

federal state (São Paulo) has got a higher GIP than any other entire Latin-American

country except Mexico.13

Above mentioned period was mainly dominated by the military, which as after the

death of Kubitschek, who died in 1961 at a traffic-accident, Brazil was governed by

two presidents that were influenced by communist ideas and thus considered as

unbearable, overthrew the democratically elected government on 01.04 1964 and

stayed in power for the next 21 years.

The direction taken by general Humberto de Alencar Castelo Branco was aimed

again on economical growth by internationalisation and procurement of foreign

capital following the way of Kubitschek investing in industry and infrastructure. In

this period big projects as the Brazilian atomic power stations Angra I and II and the

majority of the motorways existing today were constructed what lead to the gathering

10 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 7711 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 9312 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 9113 Poliglot APA Guide: Brasilien, APA Publications c/o Langenscheidt KG, München, pg 44


12

of a huge number of state owned companies and property. Therefore liquid capital

was needed and supplied by foreign sources as world economy run well. This capital

on the one hand helped to achieve an economically growth rate of a two digit number

(12,6% between 1967-1970; 14,0% between 1970-1973) but on the other hand lead

to a growing indebtedness which accumulated US$ 65,7 billions in 1982 when

Mexico had to file a bankruptcy petition at the World Bank and received a moratoria

of its foreign debts.14

When the 70ties was the decade of economical growth for Brazil, the 80ties, coined

by the oil-crisis in 1979, was the “década perdida”, the lost period. Brazil’s GIP

situated at about 7% in average in the space of time between 1947 and 1980 declined

to 2% in average during the period between 1981 and 1990. Inflation started to run in

this decade and grew to an opened hyperinflation reaching it’s peak in 1990 with

2596,0% annually which means more than 200% monthly. 15

Indebtedness and inflation became the two chef-problems that had to be solved by

Brazilian policy. And as the military government wasn’t able to manage these

problems, national and international pressure on the government augmented and

forced 1982 president Figuereido to introduce liberal election laws which terminated

the 2 parties system and allowed more parties.

In 1985 Tancredo Neves, candidate of a liberal party, became the first civil president

(still not by elections but determined by the military) after 21 years of military

government. But neither him nor his successor José Sarney were able to solve the

problems of indebtedness and inflation and Brazil changed its currency 4 times, from

Cruzeiro to Cruzado to Cruzado Novo to Cruzeiro Real in the period between 1985

to 1994 when finally the actual currency “Real”, was introduced.16

14 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 114,14815 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 132,15416 Poliglot APA Guide: Brasilien, APA Publications c/o Langenscheidt KG, München, pg 47


13

2.2.3. The nineties – economical aperture

The actual political system, as a.m., is, since 1988, the federative republic with 26

States and the Federal District of Brasilia. It is governed by a parliament composed

of two chambers, similar to the system of the United States of America, called

“Congresso Nacional” (National Congress) The two chambers are the “Câmera dos

Deputados” (Chamber of Delegates) containing 513 members and elected for 4 years

by the persons entitled to vote in entire Brazil. And the “Senado Fereal” (Federal

Senat) containing 81 members elected for 8 years. Head of state and government is

since 1995 Fernando Henrique Cardoso, the initiator of the “Plano Real” in 1993

when he still was Minister of Economics under the government of Itamar Franco.

If at the beginning it was necessary to close the market for foreign products in order

to push the Brazilian economy into industrialisation, this enclosure later, after this

creation of an industrial base, influenced the further development of the companies

that emerged in that time negatively, as the enclosure excluded competition. Lack of

competition reduces the need for improvement and thus leads to minor quality. May

be the interior market buys these products of minor quality as there is no further

option, but the foreign market which has got further options won’t buy them, thus

these products of minor quality aren’t able to be exported. But in order to reduce the

foreign debts exportation is necessary.

Collor thus wanted to stop the process of substitution of importation by reducing the

monetary and non-monetary trade barriers, hence open the Brazilian market, allow

competence and thus improve the quality of Brazilian products which would lead to a

higher export rate. This would reduce the foreign debts and bring more stability into

the economy, stability needed in order to reduce inflation. A further step in order to

reduce the foreign debts was the privatisation of the state-companies created in the

period of the military government. At the beginning there were considered 68

companies to be privatised and in September 1998 there already were sold 60 of

them were sold for a price of about US$ 28.49 billions.17

17 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 182-188, 194


14

In 1991 Brazil founded together with Argentina, Paraguay and Uruguay the

Mercosul (Mercosur), an agreement that aims to create an area of free trade, similar

to the EU in Europe or the NAFTA in North America aims, in order to ease the

exchange of goods and services by reducing taxes and frontier-control.

When in October 1992 president Collor was impeached his vice-president Itamar

Franco became president and with him there came Henrique Fernando Cardoso who,

later as Minister of Economy, introduced the so-called “Plano Real” that aimed to

fight inflation that reached 2312,0% in 1990 when Collor took over the leadership

from Sarney and in 1992 when Franco started still was at 988,0%18

Cardoso was elected as president in 1994 and entered upon president-ship in 1995 as

he who introduced the “Plano Real” was considered to be the right person to proceed

it as well.

The “Plano Real” is, as a.m., mainly aimed on the reduction of inflation, the biggest

problem of the Brazilian economy these days. The idea behind it was firstly to

stabilise the Brazilian economy which then should enable the introduction of a new

currency the “Unidade Real de Valor” or short URV (Real Unit of Value). With, as

third step the emission of stable proper coin the “Real”, stable, as based on a

stabilised economy, achieved in the first step.19

In order to stabilise economy there had to be restored the confidence into the

Brasilian state and its economy policy. Which contained several steps to be taken,

mainly dealing with cleaning the state of internal problems as embezzlement.

Embezzlement took such alarming proportions that for every Cruzeiro of taxes paid

an other Cruzeiro was embezzled.20

18 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 15419 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 20520 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 207


15

Except the need of cleaning the state of this and further similar problems, clear

signals had to be given, that the Brazilian state recognised its client, the national and

international companies, that were considered to invest in Brazil. This was a second

reason for the privatisation of state-owned-companies, as a state striving for

participation of private companies, as well considered to perform needed

improvements in the infra-structure of Brazil, has to reduce its own activities. 21

On 27th of Mai 1994 the economy was considered to be stable enough to introduce

the URV, the new currency existing until 1st of July parallel to the old coin the

Cruzeiro Real, which still stayed under a hyperinflation of 2312 %. Then, on 1st of

July there was introduced as well the new coin of the Real, replacing the Cruzeiro

Real entirely.22

21 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 208-20922 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 154,209


16

2.3. The actual economical situation of Brazil

“The Plano Real is considered the best experience of stabilisation of the Brazilian

economy”23. Which is proved by the results already seen. In 1997 Brazil was, after

China, the country with the biggest volume of foreign investment, reaching US$ 17

billions that year. An other success, the one aimed fore with the Plano Real, was the

reduction of inflation. Which developed as follows:

Year Inflation in%

1977 38,8

1982 99,7

1987 415,8

1988 1037,6

1990 2596,0

1992 988,0

1994 2312,0

1995 75,0

1996 9,0

1998 6,0

1999 3,5Table 2.3: Inflation in Brazil in the years between 1977 and 1999Sources see Footer:24

A stable economy and defeat of inflation

Cardoso thus with his Plano Real managed to bring stability into the Brazilian

economy and achieves his main aim to defeat inflation. The GIP is stable at 3,0% in

1998 and 3,2% in 1999. If this is the head of the coin, the tail is that Brazil’s old

friend, the foreign, debts came back onto the plan and accumulated in 1997 at US$

23 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 21324 Conjuntura Econômica (magazine), Índice Geral de Preços, quoted at: Lacerda, Bocchi, Rego,Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 154Spiegel Almanach Weltjahrbuch 1999, Die Staaten der Erde Zahlen Fakten Analysen, Spiegel-Buchverlag,, Hamburg and Hoffmann und Campe Verlag,, Hamburg, 1998, pg. 11,Spiegel Almanach, Weltjahrbuch 2000, Die Staaten der Erde Zahlen Fakten Analysen, Spiegel-Buchverlag, Hamburg and Hoffmann und Campe Verlag,, Hamburg, 1999, pg. 13


17

115,6 billions and contemplating the negative payment balance of 1998 with US$ -

24,3 billions and 1999 with US$ -33,8 billions the foreign debts will incline further.

Problems emerging

With the aperture of the market there came, as wanted, investors buying the state-

owned-companies, merging with Brazilian private companies and participating at

joint ventures. When in 1991 at the total number of 184 mergers foreign partners

were participating to 25%, in 1996 this rate quasi doubled to 49% of 369 companies

that merged in total. Joint Ventures in 1991 were made with participation of 62% of

foreign capital and in 1996 with 78% of foreign capital. 25

Private capital’s interest is the ROI (Return On Investment) and one mean to improve

it is rationalisation of the new property, what normally means firing employees. This

rouse the number of unemployed people in Brazil from 3,4% in 1989 by way of 4,7%

in 1995, when Cardoso became president, to 7,8% in 1999, and formed an other

severe problem.26

2.4. The importance of small and medium enterprises (SMES) for the

Brazilian economy

The importance of the SMES for the Brazilian economy can already be seen by their

number of 1,786,533 companies, bringing out, as a.m., 43% of the Brazilian

production, yielding 30% of the Brazilian GIP with the help of 60% of the Brazilian

work-force paying them 42 % of the Brazilian Salaries.27

Thus SMES provide one type of solution for one of a.m. problems that emerged

recently, the unemployment-rate, as, as W. Müller, the German minister of Economy

25 Horst Bals, president of the German-Brazilian Chamber of Trade and Craft Rio Grande do Sul(Brazil), Technologie Transfer – Chancen für den Mittelstand, Brasil-Alemanha Revista, o.O.,September 1997, editorial26 Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, Edited by Saraiva, 2000, pg. 241Spiegel Almanach, Weltjahrbuch 2000, Die Staaten der Erde Zahlen Fakten Analysen, Spiegel-Buchverlag, Hamburg and Hoffmann und Campe Verlag,, Hamburg, 1999, pg. 13


18

and Technology mentioned: “New enterprises offer the chance to advance innovation

and thus to promote growth and employment. New enterprises animate

competition and facilitate the structural change.”28

But as well the second phrase of the quotation offers an interesting these. Above I

mentioned that the Brazilian foreign debts are based on bad quality of Brazilian

products, for which the politic of enclosure between 1930 and 1990 is to be blamed,

as competition was excluded thereby. Due to this lack of quality Brazilian products

were not able to compete on the international market, which had a bad influence on

export. As foreign products were considered as better importation rouse at the same

time and thus a deficit in the payment balance appeared which made the indebtedness

grow. The due to the creation of SMES appearing competition will defeat this lack of

quality, so that Brazilian Products are able to compete on the world market, which

will incline exportation and decline importation on a natural way, without the need of

trade barriers.

After these both macroeconomical reasons for the importance of SMEs one further

microeconomical one. SMEs are more flexible and thus enter easy into market niches

as large scale enterprises, more than that are the SMEs needed by the large scale

enterprises for the “jobs that are better outsourced”, as the big water-buffaloes need

these small birds in order to pick the parasites out of their fur.

27 J.M. Rocha of the SEBRAE-MG, Presentation given 04.05.2000, Belo Horizonte, 2000, mentionedin the classes of the 7th and 10th semester at INATEL28 Müller, W. German Minister of Economy and Technology in: 44 Schritte in die Selbstständigkeit,Ihr Arbeitshandbuch für eine erfolgreiche Existenzgründung, DtA and German Ministry of Economyand Technology, 1999

3. Presentation of the IC Gerd Seibold

19

3. Presentation of the incubation-centre of INATELWe closed the last chapter with the statement, that the Brazilian economy needs

SMEs and we will open the current chapter with another statement, saying that the

most promising way to create a new company, as this is the origin of every SME, is

to do this in a favourable ambient as it is supplied in a so-called incubation-centre or

IC how it will be named from now on.

3.1. The work of an incubation-centre in general

Most people confronted with the terms “incubation” or “incubation-centre” think in

the device where eggs of birds are bred or, in relation to hospitals, the gadget where

premature born children are taken care until they are able to live on their own. The

“Incubadora de projetos e empresas do INATEL” (Incubation-centre for projects and

companies of the INATEL), how the IC we are contemplating further is called with

its full name, hasn’t got to do anything wit incubating biological live. An IC as the

one of the INATEL cares, as we can see in the full name, with the incubation of

projects and mainly companies.

Nevertheless the thought on the incubation-centres concerned with biological live

isn’t wasted as these examples explain more or less, what an IC of companies does.

In former times, when medicine was not that advanced, as it is nowadays, a

premature born child was hardly able to live on its own, and often had to die. Today

a premature baby receives special care in a special device, the so-called incubator,

and thus the chance to survive for the child augments enormous.

The idea of an IC of companies is exactly the same just in the economical sector. It is

concerned with newly founded enterprises, which at their start off as well are in a

situation, where survival is an insecure question. An IC now tries, by exactly the

same means as a biological incubation-centre, to support the ICCs. This as well is

due to special care and a supporting device and in order to get a better chance to

survive these critical time at the beginning , when the company is young and weak.


20

The work of an IC in the economical sector contains, in comparison to its biological

counterpart, one further task to be processed in order to make the incubation a

success. So that at the end, as I was able to learn from the Incubation-centre of the

University of Hohenheim in Germany, the help of ICs offered to newly founded

enterprises is threefold. 1

It contains firstly the supply of infra-structure for the clients, corresponding the

hardware, or incubator as it was called in the biological ICs, which liberates their

minds of the preoccupation about the big investments to be made at the beginning of

the foundation of a company.

The second kind of help offered by an IC, corresponding the care for the living

being, are services, e.g. help to find sources of promotion for the incubated

companies or ICCs as they will be called I the further text.

The third area of support, which is the additional one, not being able to found in the

biological counterparts of our economical ICs, is qualification. This task is not to be

underestimated, as owners of ICCs are specialists in their area. In the case of

INATEL they are mostly technicians that have a product or service idea and want to

realise that. Other skills that are needed in order to run a business or to sell the

product are not that present, as the numbers inquired by the Sebrae (Serviço

Brasileiro de Apoio às Micro e Pequenas Empresas, Brazilian Service of Support of

SMEs) of Minas Gerais (federal state of Brasil, where Santa Rita do Sapucaí is

situated) show. 85,2% of the ICCs e.g. don’t use a sales plan, 80,5% don’t train their

HR and 80,2% don’t even use resources of information technology.2

1 Prof. Dr. K. Macharzina, “Hohenheimer Modell zur Unterstützung von Existenzgründungen aus derHochschule, edited by University of Hohenheim, 13.01.19982 J.M. Rocha of the SEBRAE-MG, Presentation given 04.05.2000, Belo Horizonte, 2000, mentionedin the classes of the 7th and 10th semester at INATEL


21

3.2. The IC of the INATEL

In Brazil, same as in Germany, it is common, that a school or university, as source of

potential founders of a company, support their own IC. This as well is the situation in

the case of the “Instituto Naciolal de Telecomunicações” (National institute of

Telecommunication) or short INATEL

Due to its connection to INATEL and its localisation in Santa Rita do Sapucaí (SR) it

experiences special conditions which will be considered later in this chapter.

Primarily, in order to understand these special conditions we’ve got to know the

actual situation of and the influencing factors on the IC of INATEL as there is the

way how the IC is organised, which will lead us first to the organisational chart

where as well is time to talk about the INATEL, the IC and other organs that until

now not were mentioned. As the way the IC is organised dominates the way it is

financed too, finances will be our next topic. Thereafter we will talk about external

influences on the IC as its localisation in SR.

3.2.1. The organisational chart

The incubation-centre (IC) of INATEL is, as the past few words already let presume,

no organisation on its own. It is linked somehow to this other organisation called

INATEL. This “somehow” will be deciphered in the following paragraph. The

easiest way to do this is to introduce an organisational chart starting at the top and

finishing with the IC of INATEL:


22

Diagram 3. 1: Organisational chart of FINATEL/INATEL (Source: the author’s design)

FINATEL= Fundação do Instituto Nacional de Telecomunicações(Foundation of the National Institute of Telecommunication)

President: Professor Adonias Costa da Silveira

INATEL= Instituto Nacional de Telecomunicações (National Institute of Telecommunication)

Pro-Directory of Administration and ExtensionPro-Director: Professor Marcelo de Oliveira Marques

Pro-Directory of DevelopmentPro-Director: Professor Elias Kallás

Pro-Directory of Post-Graduation and ResearchPro-Director: Professor José Marcos Câmara Brito

Pro-Directory of GraduationPro-Director: Professor Wander Wilson Chaves

NEMPNúcleo de Empreendedorismo (Nucleus of Entrepreneurship)

ICIncubadora (Incubation-Centre)

Director: Professor Pedro SergioVice-Director: Professor José Marcos Câmara Brito

Co-ordinator: Professor Mário Augustode Souza Nunes

Manager: RogerioAbranches da Silva

Office Boy: Vagner HildebrandoFerreira

Secretary: Cláutia FernandaRodrigues


23

In the chart we have seen that the IC is embeded like the heart of a lettuce into the

several organisational layers of the organisation of FINATEL, which now shall be

introduced further:

FINATEL:

Or “Fundação do Instituto Nacional de Telecomunicações” (Foundation of the

National Institute of Telecommunication is the “…entity of public utility…”

maintaining the INATEL “…without aims of gaining money and philanthropic”.

Corresponding Brazilian law a school or university has to be maintained by one

foundation, which on the other hand can maintain various schools, universities or

other organisations. Thus in the following text we will read more about INATEL

than FINATEL. The objectives of FINATEL, confirming this are as follows:3

• Maintain the INATEL

• Form personal specialised for the national system of telecommunication

• Promote the technical and cultural teaching

• Offer philanthropic services and assistance to the young people

• Promote the integration between university, companies and the government

• Promote studies, research and performance of services

• Collaboration with public and private, national and international entities in the

execution of programmes and activities forming and improving personnel

INATEL:

The Instituto Nacional de Telecomunicações is, in contrary as the name lets suppose,

neither a federal nor a state – institution but a “…private establishment of superior

teaching and research and pioneer in the teaching specialised in

telecommunication…“. INATEL was founded on March 3rd 1965 what means, that

except 500 years Brazil this year we celebrate 35 years of INATEL. The philosophy

behind INATEL is to “form a man for the engineering”. In order to reach this

INATEL performs the following tasks: Firstly it offers courses in the areas of

Electrical Engineering, Information Technology and Telecommunications that take 5

3 INATEL, Manual do Aluno 2000, edited by INATEL, pg. 1, 2


24

years to finish. Except these under-graduate-courses there as well are offered the

following post-graduate courses: Ferramentas Computacionais para Engenharia

(Computing Tools for Engineering since 1992), Engenharia de Comunicação de

Dados (Engineering of Communication of Data 1994) Engeharia de Sistemas de

Telecomunicaçoes (Engineering of Telecommunicational Systems 1995) Engenharia

de Redes de Telecomunicações (Engineering of Network Systems of

Telecommunication 1999). Apart these teaching tasks INATEL is involved in

research and holds a incubation-centre. 4

NEMP:

As we see in the organisational chart above INATEL is splitted up into four Pro-

Directories where one, the Pro-Directory of Graduation harbours the NEMP (Núcleo

de Empreendedorismo, Nucleus of Entrepreneurship), created in 1999, who’s co-

ordinator as well is the superior of the Manager of the IC. Its objective is to develop

an entrepreneurial spirit and culture, which is achieved by the following activities:5

• Prevision of tendencies of the development on the entrepreneurial sector in order

to provide an appropriate course-programme

• Supply of a programme of courses, rounds of talk, seminars and events

supporting a.m. objectives

• Leading the IC of INATEL, which until May 1999 was managed in the form of a

mere project, but since then is done in the form of a sub-department with its own

manager, staff and structure

IC:6

Since the 70ties there existed events, mainly fairs of the resident companies, that

were aimed to promote more the skills of the students as the entrepreneurial spirit.

“In August 1985, initiated by the mayor’s office, the INATEL and a few local

entrepreneurs, it was decided to create in Santa Rita do Sapucaí an industrial centre

called Vale da Eletrônica (Electronic Valley), in the areas of telecommunication,

4 INATEL, Manual do Aluno 2000, edited by INATEL, pg. 1, 25 INATEL, Manual do Aluno 2000, edited by INATEL, pg. 166 URL:http://www.inatel.br./incubadora/introducao.html


25

electronics and information technology.” Which expressed the virtue of SR to

progress and later enabled the participation of the GTZ (Deutsche Gesellachaft für

Technische Zusammenarbeit GmbH, German Society for Technical Co-operation

Ltd.).

As virtue is not enough INATEL showed action and decided to boost their work of

qualifying students and to set more concrete targets, the targets of creating products

and companies out of the infrastructure of the proper INATEL. In 1992 this idea

became a proper co-ordinator, a statute and the name of "Programa de Incubação de

Empresas e Produtos do INATEL" (Programme of Incubation of Companies and

Products of the INATEL) with the aim to support action in direction of incubating

companies or projects with the equipment, the infrastructure and the help of the

professors without any costs for the students.

Until May 1999 it was more or less unorganised and had the flair of a hobby-room,

where one retires in order to work on his project. On May 1999 the IC received a

structure and began, with its new manager, a secretary on half-day base and an

office-boy, to work seriously as a sub-department of the NEMP (Nucleo de

Empreendedorismo, Nucleus of Entrepreneurship).

In relation to other ICs e.g. the Genesis of the PUC (Pontifícia Universidade

Católica) or the IC of the COPPE of the UFRJ (Universidade Federal de Rio de

Janeiro) it runs with very low personnel. The average of persons working in

Brazilian ICs is 5-6, in our IC, as we can see above, there are 3,5 employees.7

The vision of the founders for the IC was to create a tool, that pushes students of the

three faculties Electrical Engineering (EE), Information Technology (IT) and

Telecommunication (TC), the four post graduate courses, ex-students and employees

of INATEL to perform projects capable to be sold in the market, i.e. to produce and

to sell inventions or even to open a company distributing the invention and not

stopping with this single ideas but remain in the market beyond the decline of the

INATEL, Manual do Aluno 2000, edited by INATEL, pg. 207 Professor Mario Augusto de Sousa Nunes, co-ordinator NEME INATEL, 2000


26

original project. Thus the full name of the IC of INATEL is: “Incubadora de projetos

e empresas do INATEL” (Incubation-centre for projects and companies of the

INATEL). Whereas there is to notice, that the part concerning projects is reduced in

favour of the part dealing with the incubation of companies.

In this concern the IC of INATEL processes exactly the three a.m. tasks of supplying

infrastructure, service and qualification. The infra structure offered is mainly

composed of:

• Rooms, including water, light and electricity

• Hardware as furniture and special equipment out of the stock of the university

• And information technology as computers with e-mail and internet access,

telephone and fax

The services offered mainly consist of offering help in the different kind of questions

a new entrepreneur is facing as there is:

• Help in procuring finance, market information human resources

• Help in legal and personal affairs

• And help with special marketing and selling action e.g. fairs

The qualification offered to the young entrepreneurs is mainly qualification in

business matters as marketing, sales, accounting, controlling or human resource, as

the young entrepreneurs, being students, ex-students and employees of INATEL and

thus concerned more with technical questions, are not very firm with business

concerns, so that the main need of qualification is settled in this area. The means

used to process this qualification are:

• Courses

• Presentations of talk-guests

• And mobilisation of knowledge of the proper candidates of the incubation

programme

Until now it offers its full programme to 8 companies occupying rooms on the site of

INATEL, which are called “Empresas Residentes” (Resident Companies) and the


27

number of which will augment on 10 or 12 if the IC is moving to a different, bigger

building. More than that it offers a reduced programme, containing the same

components, just lacking the infrastructure part, to two of the so-called “Empresas

Associadas” (Associated Companies) that were able to care for their own rooms and

installations.

As a.m. the vision of the IC of INATEL is different to the vision of the most

companies which is to make money by satisfying their customers. It is to help

engaged (ex-)students and employees of INATEL to realise their dream of the own

company. Where the driving motive is to help a motive striving on monetary aims

can not exist. A healthy look onto the finances nonetheless can be avoided as in order

to help others the own existence has to be maintained as well.

3.2.2. The finances of the IC

Hence we want to have a brief look on the way how the IC is financed. As a.m. the

IC as it is organised today works since May 1999. Until that time the IC was mostly

financed by its promoter the INATEL via the NEMP, a small part was able to be

yielded out of the contributions the entrepreneurs pay and an even smaller part could

be gained out of projected supporting actions that are promoted by institutions as the

SEBRAE. The proper INATEL is gathering its finances, as can be seen in the

following diagram, by student fees, as it is a University, and by incomes out of

proper service-centres offering services as post-graduate courses, training, research

and development.

Now, that the incubation-centre is better equipped with personnel it as well is able to

invest more time in planing qualification actions that are supported by institutions

like SEBRAE that support these qualification of young entrepreneurs. The efforts

this year were paid by support of R$ 66,000 by SEBRAE which changed the finance

structure of the IC as can be seen in the following diagram:8

8 Data out of financial files both of the IC and of INATEL


28

Diagram 3. 2: Finance sources of the ICSource: the author’s design

3.2.3. Special condition reasoned by the connection to INATEL

In 3.2.1 “The organisational chart” I mentioned how the IC is bound into the

organisational structure of FINATEL/INATEL, this strong bound to an other

organisation, mostly a school or university, is typical for the ICs of Brazil. Although

there as well exist public, as e.g. municipal incubation-centres, the vast number of

these organisations are bound into this scholar structure. Out of this strong bounds to

the university there emerge restrictions for the IC.

The reason for founding the IC was, as a.m., to push the proper students to get active

and show entrepreneurial spirit. Thus one limitation INATEL set is the need, of at

least one of the founders, to be student, ex-students or employee of INATEL, to be

allowed to enter the IC.

Student fees:Target: 55 %Actual: 85 %

Incomes of services sold by INATEL’s service-centres:Target 45%Actual: 15% (in 1999, as it was a bad year, else ~ 50%)

INATEL

Companies:From May 1999 on: 18%From 2000 on: 7%

NEMP:From May 1999 on: 81%From 2000 on: 31%

SEBRAE:From May 1999 on : 1%From 2000 on: 62%

Total costs for the incubated companies


29

One reason therefore, and as well second criterion of limitation is that the companies

founded have to work in the sectors of EE, IT or TC, the areas in which INATEL is

working, and thus sees its core competence. One of the advantages of an incubation-

centre inherited to a university is its pool of professors, that are fit on exactly these

areas and always willing to help the students, more than all if the student wants to

rise his own company.

3.2.4. Special condition reasoned by the localisation in Santa Rita do

Sapucaí, the “Electronic Valley”

As mentioned in 3.2.1 “The organisational chart”, in 1985 it was decided to create

the Vale da Eletrônica, a new industrial centre in SR. This industrial centre is base

for a project of the German GTZ in co-operation with the Brazilian ABC (Agencia

de Cooperação Técnica do Ministério das Relações Exteriores do Brasil, Agency of

technical co-operation of the Brazilian Ministry of Exterior Relations) called

“Projeto de Consolidação do Pólo Tecnológico de Santa Rita do Sapucaí” (Project of

the Consolidation of the Technological Centre of SR).

As the name says, the project aimed on the consolidation of the Vale da Eletrônica in

SR, which wanted to be processed by a 5 years plan finishing in February 2001

investing US$ 7 millions supporting INATEL and three other schools in SR, the

local industry and the mayor’s office, which is supporting its own IC.


30

3.3. Organisations linked to the incubation-centre

In the last files we were flooded by names and abbreviations of organisations. This

chaos I’d like to organise by the following chart showing which organisations are

liked to the IC and later explaining which way they are linked.

Diagram 3. 3 The organisations linked to the ICSource: the author’s design

GTZ :

“The GTZ (Deutsche Gesellachaft für Technische Zusammenarbeit GmbH, German

Society for Technical Co-operation LTD.)is a development co-operation enterprise.

In accordance with the development-policy guidelines of its owner, the Federal

German Government, the GTZ is working in 142 countries world-wide.”9

“GTZ was established in 1975 ... The organisation has more than 10,000 employees

in 130 [142] countries of Africa, Asia, Latin America, the Eastern European

countries in transition and the CIS [Community of Independent States] states.”10

“GTZ advises people and organisations in planning, implementing and evaluating

projects and programmes in more than 130 [142] countries of the world.

To implement its project work GTZ recruits local or German experts ... .”11

9 http://www.gtz.de/laender/asp/index.asp?spr=2 directly quoted10 http://www.gtz.de/home/english/gtz/ directly quoted.11 http://www.gtz.de/home/english/gtz/aktiv.htm directly quoted

FINATEL/INATEL

IP

GTZ

SEBRAE

NEMP

IC

ANPROTEC RMI FIEMG PMSR


31

IP:

The direct work concerned with the “Projeto de Consolidação do Pólo Tecnológico

de Santa Rita do Sapucaí” thus is conducted by the German company “IP” short for

Institut für Projectplanung GmbH (Institute for Project Planning Ltd.) in Stuttgart

Germany, which is contracted and controlled by the GTZ by the means of project

planning and controlling.

The IP was founded in 1979 and employs at the moment 50 persons in Germany and

regional offices in Bolivia, Brazil, Chile, Malawi, Nicaragua, South Africa, Thailand,

Turkey and Vietnam.

Their main activities are:

• Management, consulting and training

• Technology transfer and vocational training

• Environmental protection

• Protection of natural resources

• And rural development and agriculture

INATEL is supported by the IP, and thus indirectly by the GTZ, more in the way of

consultancy than with financial help. This is the reason why GTZ and IP are not

taken up into the list of sponsors in 3.2.2 “The finances of the IC” although there has

to be mentioned, that GTZ through IP enabled qualification courses that as well were

partly paid by them.

ANPROTEC:

“ Created in 1987 the ANPROTEC (Associação Nacional de Entidades Promotoras

de Empreendimentos de Tecnologias Avançadas, National Association of Promoting

Entities of Entrepreneurship of Advanced Technologies) is the organ representing the

entities developing programmes of ICs, Technological Parks and Centres in

Brazil.”12

“Its mission is to combine, represent and defend the interests of the management

units of technical sites, centres parks and ICs, promoting these models as instruments


32

for the development of the country aiming the constant creation and consolidation of

companies on technological base.”13

Today it is promoting two great national events: The National Seminar about

Technological Parks and ICs and the Workshop about Management of ICs.

More than that it is developing a broad training programme and events concerning

selected topics or regions. It is editing two newsletters/magazines, the INFOFAX and

the LOCUS which is able to be found on the homepage of ANPROTEC as well

under http://www.anprotec.org.br/locus.html.

Within short time there will be introduces the INCUBANET

(www.incubanet.com.br), a new service establishing a point of exchange of

information between entrepreneurs, clients and other interested persons.

As its objectives demand ANPROTEC mainly represents the interests of ICs, and

thus of the IC of INATEL, and other groups, but as well offers training and

qualification for the personnel of ICs, where the IC of INATEL as well is

participating (e.g. 1999 in Porto Alegre). By its media ANPROTEC is an important

source of information for the IC.14

RMI:

“The RMI (Rede Mineira de Incubadoras, IC Network of the Brazilian state Minas

Gerais) is an association combining the ICs of technological base of Minas Gerais.

Its mission is to support the entities promoting companies of technological base,

supporting the creation of employment, generating wealth and collaborating at the

development of the state.”15

As the ANPROTEC is working on national base, it is the organ representing the

entities developing programmes of ICs, Technological Parks and Centres in Minas

Gerais.

The RMI as well is conducting meetings, the last one conducted in 1999 in SR co-

ordinated by the personnel of the IC of INATEL, and editing one newsletters, the

RMI-Informativo and a brochure making marketing for the ICs in MG (Minas

12 directly quoted from the different subpages of http://www.anprotec.org.br/13 directly quoted from the different subpages of http://www.anprotec.org.br/14 subpages of http://www.anprotec.org.br/15 RMI, RMI-Informativo, Belo Horizonte – MG, first year, No. 1, 2000, pg. 1, directly quoted


33

Gerais), called “Incubadora de empresas – Seu Futuro está aqui”(IC of companies –

Your future is here).

The RMI as well is supporting the INCUBANET (www.incubanet.com.br), the new

point of exchange of information between entrepreneurs, clients and other interested

persons a.m.16

Equal as ANPROTEC, RMI supports the IC of INATEL by qualification of the

proper personnel, not of the entrepreneurs of the ICCs.

FIEMG

“The FIEMG or Federação das Indústrias do Estado de Minas Gerais (Federation of

the Industries of the State Minas Gerais) is an entity that leads the strategic process

of the development of the industry of Minas Gerais, ... .”

FIEMG was created in 1933 “with the objective to combine the whole industry of the

of the State, ... in order to defend the legit interests of the industry of MG, ... .”

The strategic objectives of FIEMG are as follows:

To induce the excellence of the industry of MG

• Consolidating its lasting competitiveness

• Institutionalising business-continuity

• Trying to create an federal, national and international ambient without

restrictions

“The services developed by the system FIEMG contain different sectors in

Development of companies, education and technology, social actions and

international relations for the best of the companies and their workers and

dependants.” 17

FIEMG analysed with the help of Mc Kinsey the situation of MG and thus knows

where help is needed. If then an organisation as the IC of INATEL is asking for

support and the need therefore is considered as existent, FIEMG helps with financing

courses and other measures.

16 RMI, RMI-Informativo, Belo Horizonte – MG, first year, No. 1, 2000, pg. 1-217 http://www.fiemg.com.br


34

PMSR or Prefeitura Municipal de Santa Rita de Sapucaí (Mayor’s Office of SR):

Santa Rita do Sapucaí is located in the South of Minas Gerais and was founded there

108 years ago in 1892. Since this times it has got an administrative organisation, the

“Prefeitura Municipal”. This organ, as we heard in 3.2.1 “The organisational chart-

IC”, was the initiator of the programme “Vale da Eletrônica” and in September 1999

itself founded an IC, the “Incubadora Municipal” (Municipal IC), which last year

helped to finance a fair and has got the co-ordinater of the IC of INATEL, Mr. Mario

Augusto de Souza Nunes as technical consultant and thus as well deep personal links

to the IC of INATEL.

SEBRAE

“The SEBRAE - Serviço Brasileiro de Apoio às Micro e Pequenas Empresas

(Brazilian Service of Support of SME) is an technical institution supporting the

development of entrepreneurial activity of small rang, dedicated to advance and

spread programmes and projects that aim on the promotion and the consolidation of

the SME.

“Its purpose is to work in a strategic, innovative and pragmatic way in order to

enable the universe of Brazilian petty-businesses to grow in a sustainable evolution

under the best possible conditions, contributing to the development of the country as

a total, ... .”18

SEBRAE was created by law in 1990 ... in an epoch of great changes of the

economical and political ambient in Brazil.19

SEBRAE, as a.m., became the main financier of INATEL and works as such on the

base of financing projects and events, the IC was applying before. SEBRAE as well

is able to offer qualification for the entrepreneurs of the ICCs.

18 directly quoted from http://www.sebrae.org.br/19 http://www.sebrae.org.br/

4. Development of the topics

of the thesis Gerd Seibold

35

4. Development of the topics of the thesisThe team of the IC is small, smaller than the teams of other ICs, as a.m. but very

engaged, so that they not just do their work in order to be done, but they as well

reflect the work they do. Such a reflection process in general ends with the

realisation what could be done better.

One result of such a reflection process was, that work could be executed more

fluently if there was a structure that would support that work. Nowadays, without this

structure, there was seen a lot of redundancy concerned e.g. responsibilities given for

certain processes. The solution was seen in introducing an operation handbook that

should contain all the necessary information about the IC and structure its work and

processes.

An other result was that the work of transforming an engaged student to an

entrepreneur might be improved if the IC observed these incubating companies, as

wrong developments might be recognised sooner thereby. A new process, that as

well should be implemented into the operation handbook, emerged.

Out of these reflections the aims for the following thesis were stated as follows:

Development of a structure for a operation handbook for the incubation centre if the

“Instituto Nacional de Telecomunicações” with special emphasis on a system of

observation of the incubated companies.

5. Development of the structure

of an operation-handbook Gerd Seibold

36

5. Development of the structure of an operation handbookThe situation is as follows: The IC of the INATEL is working, in this more serious

way, for one year. After one year of work the persons processing a task see, where

there exist questions and problems that have to be resolved. One of the perceptions of

the co-ordinator and the manager of the IC was that an OPHB is necessary in order to

describe the structure of the IC, which should help to create a general understanding

of the IC but as well to define the tasks of the incubation-centre and its personnel

clearer in order to avoid redundancies in work processed and responsibility for a

process.

The aim of this part of my elaboration in the IC of INATEL will be to create a

complete skeleton for an operation handbook (OPHB), containing all the necessary

contents of an OPHB, creating missing parts if necessary, and documenting the

existing parts. So that the IC later is able to fill this structure with the flesh of reality.

Therefore we firstly have to research which parts are considered as basic for an

OPHB. Completeness can not be considered as present at the current stage of the IC,

therefore it will be necessary to first get an impression about the needed contents of

an operational handbook as target which we will try to find in praxis of an already

existing OPHB and the theory of literature.

The next step will be to analyse the work currently performed in the IC. As the IC is

already working for one year it obviously has to perform tasks, may be not all of

them are defined and there lack some processes, but there already exists a broad base

of tasks performed, which will be listed in this step.

Then we will bring these paving-stones together, what later is referred as structuring

the tasks by the synthesis of basic and current tasks, in order to see if they built the

way to the destination and if there are holes in our road that have to be filled in order

to be later able to form a complete structure.



37

Having all needed parts together we already see tasks grouped together and now can

begin to develop the final structure of the OPHB. Which will bring us to the core-

task, the auxiliary-tasks and the frame-tasks. These form a map reflecting the

structure of the IC making us to understand it better.

One thing is to have map of tasks showing you a picture of the land, the other

question to see the actual landscape in more details. The structured tasks help us to

understand the IC superficially, but in order regulate the performance of the

processes we don’t have to ask just what has to be done but as well how, by whom

and sometimes when? The answer on these questions is given in the part called

structuring the processes by introducing an algorithm how to shape the process.

Finally there just remains to comment the status quo and the prevision for the model.

5.1. Gathering information about the needed contents for an operation

handbook

In order to gain the wanted completeness of the OPHB I was considering to copy an

already existing one, which is legal if we name it benchmarking and reason it with

“not wanting to invent the wheel a second time”. We were able to get an already

existing one from Dirk Twelsiek of the IP, a.m., which contains the following 11

topics:

1. Introduction

2. Principles for consulting performances

3. Organisation of the project

4. Communication

5. Reporting

6. Administration of Finances

7. Procurement of hardware

8. Local employees

9. Counterpart-qualification

10. Short time experts and qualification funds

11. Personnel related regulations



38

This document describes perfectly the performance of the IP and the areas in which it

is acting. (Consulting, Qualification, Funding), but it is the performance of a

consulting company as the IP is. Thus my perception was, that an as the OPHB is

something tailored for the respective organisation like a suit. Every OPHB might

have some basic features as determinations concerning Finances, Human Resources

and Administration, but an OPHB intends to reflect what happens in an organisation

and to make it more transparent, thus in the OPHB of the IP we can find contents as

short time experts, the recruitment of whom forms part of an organisation concerned

with structure development. 1

In order to develop an OPHB for the IC of INATEL the correct way to go on seems

to first get the basic contents an operation-handbook should have and then everything

exceeding these basic contents has to be gained out of the organisation’s own nature.

Within the meaning of benchmarking we therefore will see what other persons

consider as basic for an organisation. Henri Fayol identified in his book “General and

Industrial Management” the six main functions performed in any organisation as:2

• Technical operations: concerned with production, manufacturing, etc.

• Commercial operations: concerned with purchase, sales and exchanges

• Financial operations: finding and controlling capital etc.

• Security operations: protection of goods and persons against all hazards

• Accounting operations: stocktaking, balance sheets, accounting, costing,

statistics, etc.

• Administrative operations: forecasting, planing, organising, co-ordinating,

commanding, controlling

Jean-Jacques Lambin shows in the chart of his book “Strategic Marketing

Management” five departments processing the necessary tasks of a business

organisation as there are: 3

1 Contents of the OPHB of the IP Stuttgart, without author, date of edition, pg. ii



39

• Operations Department: Production, Fabrication, Assembly

• Administration and Finance Department

• Marketing Department

• Human Resource Department

• And as a staff department Research and Development

Ottmar Schneck in his book “Management-Techniken” (Management Techniques)

adds to this one the purchasing department.4 And in general today we can see a

growing importance of control of product or service quality, which makes

companies, as e.g. the Volkswagen AG, to introduce a proper quality department.

Joining these tasks we can set up the wanted list of tasks to be performed basically,

as there are:

• The distribution task: Marketing and sales

• The task concerned with performing the companies purpose: Production or

service

• The Finance task

• The task linked to Human Resource

• The Purchasing task

• The task linked to Research and Development

• The Accounting task

• The Administration task

• The task concerned with the control of product/service and performance quality

• The Security task: protection of goods and personnel

On these ten functions later we are able to measure the completeness of the tasks

performed of the IC of INATEL, but besides these operations there are further

2 Henri Fayol, General and Industrial Management, 1916, without pg., place of edition, translated intoenglish 1949 by C Storrs, Sir Isaak Pitman and Sons, London, quoted at: D. Buchanan, A. Huczynski,organisational behaviour an introductory context, 3rd edition: Prentice Hall Europe, 1997, pg. 3953 Jean-Jacques Lambin, Strategic Marketing Management, edition: McGraw-Hill International (UK)Ltd. Maidenhead, 1997, pg 25, translator unknown4 Ottmar Schneck, Management-Technicken, edition: Campus Verlag Frankfurt, 1995, pg. 62



40

contents literature links to organisation, as there are job definition and description,

and determination of authority, responsibility, reporting and rules and an

organisational chart.

5.2. Recording of the currently performed tasks of the incubation-centre

If the last paragraph gave us a clue which contents an OPHB should have, this

following paragraph will show us which processes the IC currently is performing.

The most accurate way how to collect all the performed processes seemed to be to

interview the personnel of the IC which tasks they are performing.

The work of the secretary is purely settled in the administrative sector, until now her

contract is just half a day and her scope of duties is formed mainly by the attendance

of the telephone and writing and filing duties. The tasks of the office-boy are

distributing and packaging letters and other correspondence within INATEL.

Thus trying to capture all the tasks of the IC, we best follow the daily work of the

manager, as he is the one performing most of the tasks of the IC. The main work

performed by him is linked to the proper incubation process and there to the service

on the incubated companies. This service is mainly help in procuring finances,

market information or human resources and help in legal or personal affairs. An

other part of his work at the entrepreneurs belongs to the sector of qualification. He

is organising a programme of courses, seminars, technical missions and presentations

of talk guests. The third general task of an IC, as mentioned in chapter 3.1. “The

work of an incubation-centre in general” is the supply of the necessary infrastructure.

This of course as well is processed by the IC of INATEL, supplying the main part of

the fixed assets for their resident companies.

Linked to the incubation process there is further the task of advertising vacancies in

the IC in order to make potential entrepreneurs apply for such a vacancy and a

continuous marketing process in order to raise the conscience that there actually



41

exists something as an IC. The selection of the appropriate entrepreneurs has to be

processed and previous to this process the inscription has to be managed.

The next big part of the work of the manager of the IC is the procurement the

finances in order to process the work on the entrepreneurs and their companies,

followed by the procurement of finances, information, hardware and human

resources.

Further tasks of the manager are settled in the administrative area, e.g. the

observation of the payment of the incubated companies’ contribution to the expenses

of the IC and the telephone bills of the, not by the IC financed, ex-SR-calls,

proceedings linked to the contracts with the ICCs, updating the homepage and other

administrative tasks.

5.3. Structuring the tasks by the synthesis of basic and current tasks

In this synthesis part we first will group together the tasks currently performed by the

IC, which already will supply us the rough structure of the OPHB, and then compare

them with the basic contents yielded at the beginning of the chapter, in order to add

tasks if necessary.

Now we will bring a certain order in these tasks currently performed. The tasks

mentioned in the first, big, block are all tasks related to the purpose of the IC, the

bringing up of companies. Beginning with marketing processes that aim on

motivating engaged persons, mainly students of the INATEL, to apply with a product

or service idea, as base for an enterprise, for a vacancy in the IC. The next step then

is to supply some assistance with the not that simple inscription form, demanding a

BP. Thereafter a selection-process decides which of the applicants is the most

promising one for the project and thus may enter the IC. The following assistance

process wants to offer the three a.m. services to the entrepreneur in the IC, which are

infrastructure, services (more strictly spoken) and qualification. With this task the

first block of tasks is closed.



42

Contemplating this first block of tasks the IC is performing I realised, that this work

is the answer for the question asked by the vision and the objectives resulting of the

former. Vision and objectives ask: “How can we reach the aim to make our students

entrepreneurs?” The answer, the way to achieve this selected by the IC is the one

mentioned in the former paragraph. In this first group of tasks we now can find some

of the basic tasks yielded out of the literature. Marketing obviously belongs there,

what not is that obvious is that the task named “Technical Operation” by Henri Fayol

might belong there. Technical operations are very rare in the work of the IC, but if

we consider these “Technical Operations” as the purpose of the company of Henri

Fayol and assisting incubating companies the purpose of the IC, we can consider this

task as accomplished as well. Research and Development I’d group in here partly, as

in the service process there emerge questions that are concerned with our product the

incubation and by being solved by the IC-team, development of the programme is

guaranteed. An other part of Research and Development later can be found in the

auxiliary-tasks in form of the information process.

In the second block of tasks performed in the IC we find the procurement tasks. They

supply the IC with finances, hardware, information and human resources. These

tasks don’t answer anymore the question of “how to help the applicants to get

entrepreneurs?”, but deal with the question of “how to help the IC to perform this aid

process?” In this group of tasks we obviously see the basic tasks of procurement of

finances, human resource and purchasing.

The third block of tasks, the administrative tasks seem to help nobody, not the

incubation process and not the incubating institution. They just seem to be a by-

product of the work performed. Here e.g. we find tasks as observation of payments,

treatment of contracts and updating of the homepage of the IC forming part of just

one single basic task namely the administration task.

Seven of the tasks considered as basic by our literature thus are considered as well in

the IC of INATEL. This means, that the IC lacks three of them, accounting, the

security task and control of product/service and performance quality. As in the



43

presentation of INATEL and the IC mentioned, the IC is a sub-department of the

NEMP, which is a department of the INATEL. Thus several tasks are not performed

by the IC on its own but by the INATEL. To these belongs the accounting, which

might change if INATEL is introducing budgeting, the security sector and as well

parts of the HR (Human Resource) task, above mentioned as present in the IC, as

there exist processes in connection with the HR department of the INATEL.

With this explanation we have just one basic task remaining, which is not considered

in the IC by now, but which was one of the lacks already realised by the IC-team, the

control of product/service and performance quality.

This task will have to be separated in firstly product/service quality which will form

a task in the process considering the work linked directly to the incubation process of

the ICCs (incubated companies). This task later will be called the core-task and will

be contemplated deeper in the 6th chapter of present paper.

The second half of the task, called performance quality, later will form part of the 3rd

chapter of the OPHB treating about the frame tasks of the IC.

5.4. Forming the final operation handbook for the incubation-centre

The general intention of an operation-handbook is, as a.m. to show which tasks have

to be executed how and sometimes when in a company. If at the end there was a

book telling the corresponding persons what to do how and when, it would be

sufficient, but everybody will agree with me saying that it wouldn’t be satisfying.

Everybody works with more virtue if he or she knows as well the reason why to do

something.

Thus the OPHB will be structured this way that we first will talk about the

incubation-centre, what it is, its visions and objectives and the strategy developing

out of these objectives in order to supply a way to reach them.



44

And as the strategy emerged out of the vision and the objectives of the IC the

structure of the OPHB will not be created by my proper virtue but out of the tasks

needed to accomplish this strategy. Grouping these tasks together, as we already

began in the former chapter, we will be able to elaborate a group of tasks called core-

task, several auxiliary-tasks and the frame-tasks for the incubation-centre.

The information supplied until then will be enough to explain why something is done

within the IC, so that we can talk about what can be done by whom, how and when

in order to support the work of the IC.

We will do this contemplating the existing tasks, the occurring processes, the

responsibilities for these processes, the necessary rules to perform them and reports,

but not without an explanation of the meaning and aims of the single process for the

whole.

5.4.1. General information about the incubation-centre

The intention of this OPHB is, as a.m., not to sum up all the tasks to be performed in

the IC of the INATEL, but to first explain the why of the tasks in order to augment

the readiness of co-operation and collaboration of the personnel.

This is the reason why the OPHB begins with the chapter “General Information

about the Incubation-Centre”. This current paragraph contains all the information

about where the IC comes from, what it is, what its aims are and what it is doing in

order to reach these aims.

The first sub topic will explain where the IC comes from, i.e. that it forms a sub-

department of the NEMP of the INATEL. This origin later e.g. will reason why the

applicants for a vacancy in the programme of the IC will have to fulfil certain

demands.

A further source for explanations about why conditions today are as they are is the

history. Neidhardt, the former chef of the Mineralbrunnen AG Bad Überkingen



45

(Mineral water company) displayed in the entrance of the company the following

phrase: “Who doesn’t know about the past won’t be able to cope with the future”.

Thus we want to demonstrate how the ideas of incubating companies grew since the

70ties until reaching the actual state of the IC as sub-department of the NEMP in

May 1999.

History, now not just the history of the proper IC and INATEL but as well the history

of the countries economy considered in the second chapter of this thesis, induced the

view for the necessity of an organ supporting the firstly development of products and

projects and then of companies, which nowadays occupies the major work of the IC.

At the beginning of such an organisation and thus of every company there is a vision

that is to be pursued. Most companies’ vision is to make money by satisfying their

customers. INATEL’s incubation-centre’s vision is different. It is to help engaged

people to found their own company.

This vision is specified by the objectives to stimulate in the students of the tree areas

of education Electrical Engineering (EE), Information Technology (IT) and

Telecommunication (TC) of its cloak-organisation INATEL the dream of the own

company and to supply for them, ex-students and employees a supporting ambient in

order to realise this dream. 5

Visualising ones vision and objectives is like fixing a destination for a journey. This

determination where to go has to be followed by the definition of a way how one

wants to get there. This way is called strategy.

A further topic considered important in order to better understand the contingencies

occurring on this way is the presentation of the organisations linked to the IC,

considered as most important.

5 URL:http://www.inatel.br./incubadora/introducao.htmlINATEL, Manual do Aluno 2000, edited by INATEL, pg. 20



46

5.4.2. The core-task of the incubation-centre of INATEL

For the incubation-centre this strategy describes the process of making a

businessman with a strong company out of an engaged dreamer, which as well can be

defined as the core-task of the IC.

We will call it core-task because you can cut off any other part of the IC, be it

Finances, Human Resources or what ever, and the IC still will be able to recognised

as incubation-centre. But if you cut off this core-task, representing its strategy,

nothing indicates anymore to the vision and the objectives of an IC and the

organisation you are facing as well could be a coal mine, a university or a

governmental unit. This core-task of the IC is composed of the following steps:

“Making” an entrepreneur is more or less like dressing a Barbie-doll. What you first

need is the doll you can dress. This doll in the context of the IC is the applicant for

the vacancy in the programme. In order to make the students apply there have to be

fulfilled two preconditions, the virtue of the target group assumed as consistent,

which are that they know, that there is a vacancy in the IC, and even before that, the

potential applicant has to primarily know that there exists an IC and what it is. This

factor until now still is not given, so that the first sub-task of our core-task, the task

of marketing, has to be performed in order to make candidates supply for a vacancy.

This step is already very important as the objective of this action is to get a pool of

applicants where the incubation-centre is able to select the best ones out of them.

As second step, when there are some persons found that have an idea in order to start

a company there comes the first hurdle for them. In order to be allowed for the

following selection process, they’ve got to fill an inscription form. And as it is very

pretentious, demanding the applicant to prepare a business-plan (BP), there happen to

occur a lot of questions in concern to how to prepare this BP. Hence, as the IC

doesn’t want to loose promising candidates the manager aids if there appear

questions to this concern. This sub-task further will be called “Help to structure the

applicants’ ideas”.



47

If the interested persons managed to apply correctly for the programme, they get the

chance to present the idea of their company in front of a jury, which is then selecting

the most promising idea for a business to occupy the vacancy in the IC and thus to

participate in the incubation programme. How important this selection process is will

be shown by the following example out of business-live:

As the demands of a job in a higher level of hierarchy is burdened with more

responsibility, a manager of a company has to select carefully which employee is

mature enough to carry this burden and thus can be promoted to this higher level of

hierarchy, because an immature employee most probably would fail in this job.

In the context of the incubation-centre its co-ordinator as well has to select carefully

which applicant’s idea is mature enough to persist in the market and thus can be

promoted by a placement in the incubation-centre. And as this selection process is

this important the co-ordinator, responsible for its performance won’t take this

decision on his own but convoke a jury in order to help him to take it. As an

incubation’s success is directly linked to the maturity of the incubated idea or

company this process of selection of just the most mature companies is in the interest

of both, the young entrepreneurs and us, the incubation-centre, as it is the aim of both

to perform a successful incubation.

Thus the process of “selection of candidates” is due to high significance, as the

sooner we begin to avoid errors – which means to take the right decisions, which

means to produce quality - the more probable is a successful incubation. Therefore a

high number of applicants, supplied by a good marketing, permits a more probable

selection of a promising company. The Tree of Quality shown in the appendix might

explain this statement further.



48

Current data displays the situation as follows: From eight interested persons four

apply for a vacancy, but just two do this correctly and completely and of these two

one is selected, in this third step of the core-task, to participate in the programme.6

If then the entrepreneur passes these steps and enters into the IC he is obliged to

register his company, and from then he can enjoy the advantages the IC offers. This

fourth sub-task of the core-task is the most time intensive and the most voluminous

one, containing currently 19 processes. It normally runs over a period of 24 months

for ICCs (incubated companies) that are developing products and over a period of 12

months for companies developing services.

This task is the one containing the three services an IC generally offers to its

entrepreneurs like parents to their children, how it is compared in Brazil.

As there is the service of supplying infrastructure to the ICCs, what can be compared

to the home parents are providing for their children, containing three processes

enabling the fast start of a new company without preoccupations about the

procurement of capital intensive fixed assets as buildings and equipment.

The service (widely spoken) of offering services (strictly spoken), currently

containing nine processes, composing mainly the help in task exceeding the skills of

an engineer, mainly business tasks as the procurement of auxiliaries for his core-task.

Which, following the picture of parents bringing up their children, can be compared

to the help of parents tying the shoe-laces of their children that still don’t have this

capacity.

And thirdly the service of qualification, creating slowly the skills needed in order to

process these business tasks on their own, as a child learning how to tie its shoe-laces

on its own, which currently is containing 7 tasks.

6 Rogerio Abranches da Silva, actual data IC of INATEL, 2000



49

In chapter 5.3. “Structuring the tasks by the synthesis of basic and current tasks” we

discovered a basic task lacking in the conjoint of tasks of the IC, namely the task of

controlling product/service quality and performance quality of the IC. We separated

it into two parts, the first one of them, namely the control of product/service quality,

we classed with the core-task. And here it comes, parallel to the accompaniment and

aid process we now attach the new task of the ICCs as their development reflects the

quality and success of the incubation service of the IC offered to them.

The comparison between basic tasks and actual tasks lead us to this topic, but the

reason why we want to introduce this kind of controlling is not just because it was

lacked as a basic task in the conjoint of tasks of the IC, but as well or even more,

because the team of the incubation-centre, now working in their duties for one year,

felt the need for it previously, because of the following contemplation:

We now were talking for several pages about a process, we called core-task of the

IC, and that we want to perform it with quality. We entered with quality trying to

supply a great base of interested persons (by marketing), animating only the most

certain ones to apply for a vacancy (pretentious demands on the inscription form) and

selecting only the best out of them for our programme. And then we let them perform

their incubation the way it might be without the virtue to intervene if the business is

running badly. This wouldn’t be conform to the view of quality we enjoined on our

process.

Performing this core-task with a high probability to end in a dismissal of a company

being able to compete in the market is one main reason why we want to introduce

this controlling task parallel to the process of accompaniment and aid. But

controlling is a word that causes an uncertain feeling in us, if we are controlled we

think we are distrusted. Distrust is not the reason why we want to introduce the

controlling of our ICCs. Controlling is a mean of frequently mirroring if a process is

still running inside the given limits. If this is not the case it allows a fast interference

in order to bring the process back on its way. But in order to not even letting appear



50

these thoughts of distrust we introduced for this step the term observation and

evaluation.

The second main reason why we want to introduce controlling it is to help the

entrepreneurs to learn about their own company and how they can display its health.

This is a great tool which will be of great help not just during their time in the

incubation-centre but as well afterwards if they are settled in the free market. And the

hope of the IC-team is that the entrepreneurs stick on it as a pupil of a driving-school

sticks on the security-belt once being accustomed to it.

Controlling without a following action is just wasted money. Hence the yielded data

out of this process has to cause a result. The result of our controlling process can end

in two results. The first one is, and after this result no further process is concerned

and the company stays in the programme, that the ICC is considered as successful”

which means that the company may stay in the incubation-centre until the incubation

process comes to its end. This is normally at the end of a two years period (for a

product-ICC, one year for a service-ICC) stated as standard time. After this two

years, or if the observation and evaluation process state an “unsuccessful”

performance as well sooner, a further new process, the so-called process of dismissal,

is initiated.

In two years (respective one year) time there was growing more than a simple

business relation between consultant and client and thus a dismissal can’t be saying

good bye and setting a deadline when to leave. The IC is interested in how the

company is going on and may be can influence the further growth of this ex-ICC

positively by upholding the offer of participation on courses and seminars for this

company. And the entrepreneur may be is interested in paying back at least some of

the value received in form of infrastructure, service and qualification in the IC by

supporting the incubation-centre within his possibilities.

A possibility of institutionalisation of this post-incubation-relation might be

considered by the introduction of a “Club of ex-ICCs” similar to the already existing



51

“Club of ex-students of the INATEL”, aiming on keeping useful contacts between

university and ex-student and between ex-student and ex-student or in our case then

between IC and ex-ICCs and among the ex-ICCs.

Further in this task there has to be considered the handing over of the objectives lend

by the ICC.

The second kind of dismissal is attributed with “unsuccessful” and equals the first

process just in the regulation of the lent objects. These companies are dismissed

because of the reason that they weren’t able to fulfil our hard criterions enjoined on

them in the observation process. They are leaving with the best wishes of the IC, but

in the conscience of enabling a more promising company to incubate.

At the end of the description of this core-task the whole process in a diagram in order

to catch it with one view:

Diagram 5. 1: The core-task of the incubation-centreSource: the author’s design

1.1 Marketing or:How to gaininterested

1.6 Dismissal ofthe incubatedcompanies

1.4Accompanimentand aid

1.5 Observationand evaluation

1.3 Selection ofcandidates

1.2 Help tostructure theapplicants' ideas



52

5.4.3. Auxiliary-tasks of the incubation-centre

We called the first group of tasks currently performed by the IC called core-task, out

of their necessity for the IC to be recognised as such, as they are concerned with the

IC’s strategy to form competitive companies. But as a body needs arms and hands

and feet and eyes, except the core-task, the strategy that forms the spiritual heart of

the organisation, an organisation as well needs further organs that allow it to exist, as

there are e.g. Finance and Human Resources. The tasks composing the second group

are not concerned with the work of the IC done on the ICCs, but with supplying help

to the proper IC in order to enable and to improve its work on the ICCs.

These tasks will further on be called auxiliary-tasks as their purpose is to help the IC-

team to perform their work, they are surrounding the core tasks as shown in the

following diagram:

Auxiliary-tasks

Diagram 5. 2: The auxiliary-tasksSource: (the author’s design

Each of these four auxiliary task helps the IC-team to accomplish their task of

assisting the ICCs. The extent of their contribution and therewith the importance of

themselves on the other hand is different.

The general procurement e.g. supplies goods, services and equipment to the IC. In

general most of the objects except stationary are, if once purchased present, so that

the IC doesn’t have to make that much use of these processes.

Core-task

Finance

Information

Human Resource

General procurement



53

The three information processes presenting the other part of the research and

development activities of the IC were until today used more or less unconsciously.

There were meetings mainly organised by the ANPROTEC or the RMI that brought

new impulses for the IC, but there was no conscience therefore that this might be a

process that could be determined further and thus improved. The idea of a virtual

meeting point in the internet will be shortly realised in form of the incubanet.

One task of this group that already is very important is the task of procurement of

finances. As we read in chapter 3.2.2. “The finances of the IC” a big part of the

finances today is supplied by organisations as SEBRAE, on the base of so-called

financed projects. The way to process this procurement of finances by financed

projects is explained by the processes of searching and selecting sources and the

application processes for annual projects and events.

The task of concerning human resource bears, except the processes that were already

existent and just needed to be structured, two additional definitions.

The first one is the organisational chart, which may not lack in an OPHB, as it is a

simple way to describe the relations in a company. The organisational chart was

necessary to be defined for the IC, as a lot of the a.m. redundancy problems were

caused by a lacking definition of the relation and the responsibilities between the co-

ordinator of the NEMP and thus as well of the IC and its manager.

As the IC is not that big and in order to show as well the relations between IC,

NEMP and the other levels of the FINATEL/INATEL, I decided to develop an

organisational chart not just showing the three respectively four persons of the IC,

but as well how the incubation centre is embeded in the entire organisation. As this is

already shown in the chapter 3.2.1. “The organisational chart” it won’t be shown

here another time.



54

The second content to be defined in addition to the processes forming this task is a

job definition and description of the four jobs currently composing the IC. The

division of labour allows a group to process tasks a single person wouldn’t be able to

perform. This, as in the IC it is the case, just can work well, i.e. without redundancies

or lacks, if the performance is co-ordinated and the relation between the different

jobs are determined. In order to be able to make the necessary determinations for the

IC we want to introduce the following list of job definitions and descriptions:7

1. Exact job designation

2. Department of the job

3. Superior of the holder of the job

4. Direct subordinate persons

5. Substitution by...

6. Main aims of the job

7. General aims of the job

8. Limitation of responsibilities

9. Formal demands on the holder of the job (graduation, job-experience)

10. Collaboration with other posts

11. Participation in meetings and organs

12. Budget of the place

13. Place of work

14. Time of work

15. Salary group

16. Salary + overtime

17. Vacations

18. Social security

19. Special remarks

7 D. Buchanan, A. Huczynski, organisational behaviour an introductory context, 3rd edition: PrenticeHall Europe, 1997, pg. 301-304Ottmar Schneck, Management-Technicken, edition: Campus Verlag Frankfurt, 1995, pg. 155



55

Although I won’t document every single of the following 19 definitions and

determinations I’d like to explain shortly the areas covered by the determinations.

The first 5 definitions namely designation, department, superior subordinates and

substitution, determine the situation of the job in the structure of the organisation, a

theoretical consideration of less practical than structuring value. Bullet-points 6-8

namely main aims, general aims and limitations, determine the work-contents of

respective job. 9 pins down which demands have to be fulfilled by a person that

wants to occupy the job. With the collaboration with other posts and in meetings is

defined in bullet-points 10 and 11 now we are entering into the areas of more

practical definitions, and the definitions of budgets, place, time, salary and vacancies

we state more the interest of a person applying for the job than determining its

position in the conjoint of jobs.

After the creation of an organisational chart and the job definitions and

determinations we return to the processes forming the auxiliary task of Human

Resource. The most obvious process of acquirement of personnel was augmented by

the task of creation of a new job. There slumber the hopes of the IC, once being able

to create the job of a marketing assistant or whichever, in order to strengthen the

team of 3,5 persons. We as well aggregated the task of promoting personnel, which

until now just existed undefined. The last task, or better group of tasks, in the HR

block is the group of qualification tasks, similar to the ones in the core-task.

5.4.4. Frame tasks of the incubation-centre

Until now we allocated a lot of processes performed by the IC-team in the core-task,

supporting directly the work on the ICCs, and in the auxiliary-tasks not supporting

the ICCs, but the work of the IC and there still are two groups of tasks remaining,

namely the group of the administrative tasks and the task of controlling the

performance of the IC, considered as lacking.

These two tasks can be considered surrounding the whole system. The administrative

tasks, as they jump into the niches the core-task and the auxiliary-tasks left and the

controlling of the performance of the IC, as it has to observe the whole picture, so



56

that with the introduction of this frame-task the whole structure explained by this

OPHB can be presented in the following diagram:

Diagram 5. 3: The frame-tasksSource: the author’s design

As the Administration task is, as a.m., the stopgap for all the processes belonging to

neither the core-task nor the auxiliary-tasks it contains processes of different areas,

e.g. these concerned with the observation of payment and linked processes as the

payment of the ICCs incubation contribution as well as the preparation and

observation of the payment of their fax bills.

Besides of further processes correlated e.g. to the contract with the ICCs or updating

the homepage of the IC and contracting a speaker for courses seminars and talk-

rounds, here as well enter definitions of e.g. the remuneration of the use of the proper

car of a member of the IC for official journeys and the organisation of them.

Controlling here in the frame-tasks is not the controlling of the product or service of

the IC, which is performed in the core process, but the controlling of the performance

of the whole IC. Similar to the observation and evaluation process a.m. there have to

be defined corner-pillars as e.g. business success, which for an IC isn’t the profit

yielded per period but the successful incubations, communication, showing the trust

in the IC and so on. Out of these pillars there have to be developed parameters

determining the degree of success. But this belongs to the flesh needed to be packed

on the skeleton determined in the present elaboration.

The frame-tasks

The auxiliary-tasks

The core-task



57

5.5. Structuring the processes by introducing an algorithm

Grouping the tasks brought us an overview over the business of the IC. This was

helpful firstly in order to explain what happens in the IC, but as well in order to pick

out smaller areas of the IC and to define them clearer. During the work e.g. we found

further processes that were existing, but not mentioned within the first interviews, i.e.

they were not that present in the mind of the IC.

The definition of the tasks and their structuring didn’t solve the problem that there

were a lot of redundancies, which appeared very obviously at our registering

meetings. Often the work to be done in the process was very clear specified, but the

responsibility therefore wasn’t. So that often two persons, the co-ordinator and the

manager of the IC, were performing the same work.

A solution for this problem would unburden the concerned parties and thus gain them

time in order to perform other tasks. The solution considered by me in the frame of

the OPHB is to not just define the tasks and contents of the tasks, but to describe the

whole process, the responsible persons, possible rules and reports to be made as well.

Then in a further step, after the structure is approved, the idea is in the process of

filling the skeleton with flesh, to create the corresponding process flow charts as

well, as we can see it in the already finished process of observation and evaluation of

the incubated companies.

This process-flow, built up as an algorithm as well bears the idea of being a crutch in

order to compensate one of the biggest problems of human being, the forgetfulness,

as it reminds on the tiny details of a process as e.g. not to forget to offer a vacancy of

a job in the IC firstly internally, i.e. within INATEL and later as well external.



58

5.6. Result as seen in the appendix

The result we can see in the appendix is the structure of the OPHB fulfilling and

even exceeding the demand of being a pure structure for an operation-handbook, as

not only the processes were structured and brought into a informative format, but as

well the processes are structured and largely defined.

By this structuring process the demand of finding a way to regulate responsibilities

and thus to reduce redundancies in the work of the IC-team was accomplished and by

already defining the process flows and responsibilities some of these redundancies

already could be solved.

In order to finish with a whole OPHB there will have to be made some further

definitions concerning further rules and reports, charts for the process flow of

complicate processes are to be made and the process of controlling the performance

of the IC has to be defined similarly to the process of observation and evaluation of

the ICCs.

6. Development of a system of

observation and evaluation Gerd Seibold

59

6. Development of a system of observation and evaluation of the

incubated companiesOne of the lacking tasks in the performance of the IC, as already mentioned, is the

control of the service of the IC. And since the product, or better service, of the IC is

the incubation of companies, the best way to control this service is the observation

and evaluation of the ICCs. Thus this chapter does away with both, the lack of the IC

not having an controlling system for its service and the lack of the ICCs not having a

controlling system for their performance.

The way we want to do this is firstly to display why observation is felt as necessary.

Then in the following step we contemplate how literature solves the control of

organisations inspecting the examples of the DuPont-system, the RL-system and the

ZVEI-system. After getting inspiration out of this data the next step will be to try to

use this theory in the praxis of the IC. This will be achieved by defining what it is the

IC wants to measure. At the end of this step we receive the indicators the IC wants to

use and the targets for the indicators in order to be able to measure them, which is

base for any evaluation. What we don’t have at this stage is the answer on the

question how the IC wants to apply these indicators. This will be considered in the

design of a proper system, showing the use of indicators and their targets for the

evaluation processed by the IC. The last step in this chapter will be to pack all this

stuff in a, or better two processes of observation and evaluation.

6.1. Why observation is felt as necessary

As a.m. the IC hasn’t got the aims to make money. But this as well doesn’t mean,

that it hasn’t got to observe and to optimise its performance. Optimising the ICs

performance in general means to optimise all the involved processes. As the most

tasks are already defined more or less, the decision of the IC was to create a process

for the only task in the core-process that still is not defined first, in order to eliminate

this bottleneck.

In order to explain this further, the whole core-process again in words:



60

First there are the marketing-processes, that guarantee a good entrance in the core-

task by supplying an extensive pool of interested persons out of which at the end of

the core-process just the most promising remain in order to stay in the programme.

Later, the second step of helping the applicants structuring their ideas, turns

interested persons to persons that preoccupy seriously with the idea of becoming

entrepreneurs of their own company. Here the number of interested persons won in

the first step of the process already reduces on persons that turn candidates.

The third step in the core-process then is the selection of candidates for the

programme by the IC corresponding elaborated criterions, where the still huge

number of applicants is reduced to just one final entrepreneur admitted to join the IC.

Here, as outlined in process 4, he is supported by the IC to develop his company.

The selection of candidates in step three is based on a presentation of the

presentation of the company, including a business-plan and a project-plan, by the

entrepreneurs and an evaluation by the co-ordinator of the NEMP, the manager of the

IC, a Psychologist and two specialists of the area of administration following the

presentation. The mixture of technically, administratively and psychologically skilled

members of the jury shall assure that at the end the most promising entrepreneur is

selected to be supported. But as everywhere humanity influences a decision, even by

the security means considered as most effective, wrong decisions are made.

Hence we are not able to exclude the entrance of a person who’s strengths are not to

be an entrepreneur, but settled on other areas. We’ve got to introduce a system that

allows to give the advice to these persons to consider their decision to become

entrepreneur and to help themselves and the IC to improve respective performance.

As the work of the IC is to successfully incubate companies its success is directly

linked to the success of the incubating companies. The first necessity in order to

allow this sifting the chaff from the wheat is the introduction of a system to observe

the incubated company.



61

If a company and thus its entrepreneur is doing well isn’t able to be seen already

after two months, may be after a half year, but the perception of the IC is to make

this decision after 18 months in very obvious cases already after 12.

A second reason for the introduction of this process is that the yielded data is not just

an indicator deciding if a company stays in the programme or not, but, and this is the

perception I got out of the meetings with the personnel of the IC, even more

information that allows to determine if a company is on the right way and if not to

decide measures in order to bring it back on it.

Thirdly, and this is following the picture of the parents not just helping their children

to tie the shoe-laces, but as well to educate them to do this on their own, we want our

entrepreneurs to grow up with a system of control for the success of their companies

in order to show them how helpful it can be and to make them appreciate the

advantage they get out of it and animate them to go on with this tool as well after

they left the IC.

6.2. How this observation could be performed

After the why, that was reasoned with the optimisation of the incubation process,

we’ve got to define how we want to observe and to evaluate the companies. What

we’ve got to do is to collect data out of the respective company, that is considered to

be related to the companies success, which can be called observation. Then we’ve

got to compare these results of business-activity with reference data, which can be

planed data or data of a different period or company. This process can be called

evaluation and finishes in a statement, e.g. a decision.

The data we compare here, and we from now on call indicators, is exclusively data

that is considered to bring information about the aims of the contemplated system,

i.e. if we look at an enterprise the aim of which it is to make money for the

shareholders, the indicators inform exclusively about data considered to be relevant

for this aim. And if the aim can only be reached by having the image of an ecological



62

exception enterprise there have to be indicators telling about the ecological

performance of the company.1

Two eyes see more than one and four eyes see more than two, this proverb as well is

valid in relation to indicators. It is nice to have one indicator to tell you how you are

doing, but may be your success is not entirely describable by one indicator. Back

again to the enterprise that wants to optimise the profit for their shareholders. They

might observe their ROI or the earnings they make, but as these factors as well might

depend on other factors as e.g. the good image in ecological concerns the enterprise

has got. Hence it wouldn’t be enough to observe just the indicators “ROI” or

“earnings”, but there has to be opened the second eye onto the ecological

performance. Or the indicator might be composed of two factors that influence one’s

primary indicator in a compensating way. One’s earnings (E) e.g. are composed by

the number of pieces or products sold (n) multiplied by the difference between the

price (p) gained for one unit minus the variable costs (cv) per unit minus the fixed

costs (CF)of the company:

E = n * (p-cv) - CF

The earnings now can stay stable although the factors changed. The costs per unit

might have declined, so that at equal sales-price and equal number of units sold the

earnings should incline. When now the number of units sold is declining as well it

might happen, that the earnings stay equal, and thus the preoccupying fact that the

number of unites sold is declining is not recognised. Hence there are no means able

to be taken in order to resolve this problem, because it is not even realised. And thus

the right answer would be to work not with just one indicator, but with several

indicators linked to a system.

1 Brown, M.G., Kennzahlen: harte und weiche Faktoren erkennen, messen und bewerten, Carl HanserVerlag, Muenchen, 1997, Translation into German by Robert Leonhardt, pg. 50 and 163 and Staudt /Groeters / Hafkesbrink /Treichel, Kennzahlen und Kennzahlensysteme, Erich Schmidt Verlag GmbH,Berlin 1985, pg. 24



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6.2.1. How literature would perform observation

One approach in order to introduce a reliable system of indicators could be to read

what the literature is offering concerning this topic. What literature does, firstly is

explaining what a system of indicators is, how to create an indicator and the different

types of them and systems of indicators that exist, but to deal with our practical

problem this theory is not considered as that important.2

Secondly the authors provide the service of benchmarking in order to receive

answers to the above asked question: “How to observe and evaluate a company?”3If

we want to make benchmarking, we’ve got to select carefully the benchmarks, as if

we set the wrong marks we are aiming for wrong targets. Thus in order to develop an

observation and evaluation system for our ICCs we should learn how to do this from

other ICs and their incubated companies.

At a former point it was mentioned, that the IC of the INATEL as it works today

began to start its performance in 1999. The age of the IC thus is one year, and most

of the other ICs in Brazil, and seemingly as well in Germany, don’t exist more than

five years, too. Which means that the other ICs in Brazil are more or less at the same

level of development as the IC of the INATEL and thus fight with more or less the

same problems including the development of a reliable system of indicators in order

to control the ICCs.

Getting a benchmark in an other incubation-centre thus can be excluded. The second

way, to get a benchmark in a SME, will have to be excluded because these SMEs

don’t make many use of these controlling instruments, which displays the research of

the IHK-Koblenz in 1977 considering the question “Who utilises these systems of

indicators and who not?”:

2 Groll, K.-H, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG,Freiburg i.B., 1986, pg. 11-323 Groll, K.-H, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG,Freiburg i.B., 1986 andStaudt / Groeters / Hafkesbrink /Treichel, Kennzahlen und Kennzahlensysteme, Erich Schmidt VerlagGmbH, Berlin 1985 and



64

“If you use none or just very few enterprise indicators in your company, why is it?”

would be that for a huge number of the small and medium sized enterprises (SMEs)

it is out of reasons as lack of capable personnel, to much time and work to be

invested or they’ve got the opinion to dominate their company as well without

controlling it. This makes suppose that SMEs in general don’t make that much use of

systems of indicators as large-scale enterprises, and the total numbers exposed by the

research of the IHK for the space of time March/April 1977 seem to prove this. 4

A further research, the SEBRAE made in 2000 for Brazil, displays that the large

number of the 1,786,533 SMEs in Brazil don’t make proper use of systems of

planning and control.5 Which thus as well eliminates the SMEs to act as a benchmark

for our venture to develop a system of indicators in order to control the ICCs of an

IC.

Thus the next step, the authors took, to learn from others was to compare with large-

scale enterprises as they are widely utilising indicators and systems of indicators in

order to observe their companies.6 This step we will follow always considering that

the situation of SMEs might be different and that thus the information we gather here

will be a pool of ideas for us, supplying may be a frame for the system we need to

develop, but no ready solution we could copy 1:1.

If we are skimming through the literature to this topic we find some interesting

suggestions fore these systems of which we want to understand just the way they are

working in order to gain suggestions and advises for the design of system of

indicators for the IC and its ICCs.

Brown, M.G., Kennzahlen: harte und weiche Faktoren erkennen, messen und bewerten, Carl HanserVerlag, Muenchen, 1997, Translation into German by Robert Leonhardt4 Staudt/Groeters/Hafkesbrink/Treichel, Kennzahlen und Kennzahlensysteme, Erich Schmidt Verlag,GmbH, Berlin 1985, pg. 110-111 recited partly of: IHK-Koblenz (181) 1977, Kennzahlenanwendungin Klein- und Mittelbetrieben, pg. 55 J.M. Rocha of the SEBRAE-MG, Presentation given 04.05.2000, Belo Horizonte, 2000, mentionedin the classes of the 7th and 10th semester at INATEL6 Staudt/Groeters/Hafkesbrink/Treichel, Kennzahlen und Kennzahlensysteme, Erich Schmidt Verlag,GmbH, Berlin 1985, pg. 111 recited fom: Toepfer, A.: Panungs- und Kontrollsysteme industriellerUnternehmungen. Eine theoretische und empierische Analyse. BetriebswirtschaftlicheForschungsergebnisse, Band 73, edited by Kosiol, E./u.a., Berin 1976, pg. 292



65

There are to be shown only three systems although there exist more, but these belong

to the three groups of systems of indicators that are to be distinguished and thus

suffice in order to get the general overview we need in order to create a system for

our ICCs.

There is firstly the DuPont-system as representative of the so-called “Rechensystem”

(RS = Calculation System), the RL-system as a pure “Ordnungssystem” (OS =

Arrangement System) and finally the ZVEI-system as a mixture of the both pure

systems.



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6.2.2. The “DuPont-System of financial control”

In order to present the three systems we want to introduce an algorithm of

presentation, beginning with the origin of the system followed by the explanation

how it works, the possibilities of the system and an evaluation of the use for our

venture to develop a system of indicators for our ICCs.

In order to introduce the Structure of the DuPont-System we will start with the

following diagram:

Diagram 6. 1: The DuPont-System of Financial ControlSource: Staudt / Groeters / Hafesbrink / Treichel: Kennzahlen und Kennzahlensysteme, pg.35, whocited from: American Management Association

Return on Investment (RIO)= Earnings .Total Investment

Earnings as % of Sales= Earnings

Sales

Sales Earnings = Sales– Cost of Sales

Cost of SalesSales

Administrative

Freight andDelivery

SellingExpense

Mill Costof Sales

Turnover = Sales . Total Investment

Total Investment =Permanent Investment +Working Capital

Sales

Permanent Investment WorkingCapital

Cash AccountsReceivable

Inventories



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Remarks to the nomenclature in above shown Diagram:

What in the diagram is named “sales” in the dictionary and the everyday’s language

is named turnover and in the rest of the paper shall be named this way as well. Thus

the expression “turnover” for “sales” (in the terms of the DuPont-system) per “total

investment” further on won’t be able to be called like this in order to avoid confusion

and thus will call it “capital-turnover”. The expression “Earnings” further on will be

called “Profit”.

This DuPont-System of financial control, was developed in the company E.I. DuPont

de Nemours and company in 1919. 7

As we can see there are several levels of indicators that form a new indicator in the

level superior by sole mathematical connection by the basic calculation rules

(addition, subtraction, multiplication and division). Thus it is called a “calculation

system”. “This way there emerges a pyramid of indicators at the top of which there is

situated the so-called top-indicator which is of special importance...”8. It is the so-

called Return On Investment (ROI) which describes very well the success of the

enterprise, as the ROI is nothing else than the Earnings of the company (important

indicator for the business success of a company) divided by the reference number

“Total Investment”, which shall enable a better comparability with other companies 9

This system offers one number for the person observing the company, if this number

is o.k. he doesn’t have to think about more detailed factors. But if the number

indicates irregularities the observing person is able to follow the levels step by step

downwards until he finds the problem causing these irregularities.

The general demands on a system of indicators are always to be as simple as

possible, if possible just one indicator that enables to observe the whole company,

7 Groll, K.-H.:, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG,Freiburg i. Br. 1986, pg. 21 and 338 Groll, K.-H, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG,Freiburg i.B., 1986, pg. 21



68

this demand is fulfilled by the DuPont-system. But at the mean time it is to be as

profound and informative as possible. Since these aims are related reciprocally, both

of them won’t be able to achieved to 100%, as one always suffers if the other gains.

Thus an optimum will have to be found somewhere in between them, corresponding

the demands of the IC and its ICCs.

This system is to be seen as settled at the more simple side of the systems of

indicators, as it is very small and consists as it is shown here of 16 indicators that

have to be raised and followed. Hence the disadvantage is that, the more simple a

system is structured the more superficial it as well is. Whereas the advantages that

follow out of its simplicity is that it is very clear to survey and very flexible in terms

to be able to make add-ons.10

6.2.3. The RL or Rentabilitäts-Liquiditäts-System of T. Reichmann and L.

Lachnit

As already in the header mentioned this system of indices was developed by Thomas

Reichmann and Laurenz Lachnit in order to plan and to control two of the top

indicators informing about the success of a company, namely profit and liquidity.11

The indicators in the RL-System are not, as in the DuPont-system, necessarily linked

mathematically together in order to be able to dissolve one top indicator into its

components one level beneath and so on, which was called a “calculation system”. In

the RL-System the indicators are connected in a logical way, i.e. indicators of

profitability as “RIO” and “Earnings as % of Sales” are grouped together as they are

measuring contents, informing about one kind of performance considered as

important. At the end there as well is one top indicator per information wanted, that

9 Groll, K.-H.:, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG,Freiburg i. Br. 1986, pg. 3310 Groll, K.-H, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG,Freiburg i.B., 1986, pg. 3511 Reichmann, T. / Lachnit, L.: Planung Steuerung und Kontrolle mit Hilfe von Kennzahlen, in:Zeitschrift für betriebswirtschaftliche Forschung, 28. Annual set. (1976), pg. 705-723 quoted at: Groll,K.-H, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG, Freiburgi.B., 1986, pg. 40



69

forms the peak of the respective part of the system, not because its superiority is

mathematically proved by its divisibility in respective components but because its

superiority is perceived as logical. The structure thus might as well be a pyramid as it

is tapering as well from one level to the other and finishes with one top indicator per

peak, but as the RL-System hasn’t got just one top indicator it looks like a double

pyramid. Including an additive part, supporting the profitability branch of the system,

the so-called “special-part”, the RL-System is composed by 38 indicators that partly

are able to be yielded in shorter periods than one year, as e.g. quarterly, monthly, one

as well weekly.12

As this system doesn’t set great store by a mathematical divisibility it allows to

consider indicators that wouldn’t have place in the DuPont-system, but can supply

interesting, and thus important extra-information. This circumstance as well allows

this second top indicator, if considered as important. In general it thus offers more

liberty for shaping a system after the needs of the organisation to be observed.

The RL-System with 38 indicators is still not that difficult to be surveyed and offers

two possibility that are important for the IC. The first one is, that there are indicators

that are able to be yielded in a shorter period of time as one year i.e. two months after

the IC’s definition. The second demand is to not just have one top indicator, but to

supply indicators for the information considered as essential for an ICC, which are

even more than the two peaks of the RL-System, the business-success (here

measured by profit) and the independence (here measured by liquidity).

The omission of linking indicators necessarily by mathematical functions, offers the

chance of adopting indicators that, by the demand of mere mathematical relations,

might not, or just by mathematical endeavour, have entered the system although

considered as important. On the other hand the system thus loses its clarity, as

influences of one indicator to the other aren’t visible that easy anymore. Groll thus

suggests to use the advantages and to avoid the disadvantages of the both types of

12 just so, pg. 40-43



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already mentioned systems, which of course is our intention making benchmarking

here.13

6.2.4. The ZVEI system

The ZVEI-System was invented by a body of the “Zentralverband der Elektronischen

Industrie e.V.” (Central-Union of the Electronic Industry) and was firstly published

in 1970. 14

The ZVEI-System is primarily structured into the so-called “Wachstumsanalyse”

(growth analysis) which is a collection of unlinked information, considered as

important as e.g. sales actions, business-success, bound capital, and value added. It is

used in order to supply a rough overview over these factors considered as important.

The second part is the so-called “Strukturanalyse” (structure analysis) which is

subdivided in roughly explained two branches, the business-success and the risk-

branch, reminding us on the RL-system. The system is composed of 60 main and at

least 64 auxiliary indicators which are linked together by mathematical and logical

relations, what makes it to a mixture between a calculation and a arrangement

system.15

This system doesn’t try to follow rules that allow just mathematical relations or

demand a peak at the end and thus opens the even more as the RL-system in relation

to the DuPont-System did. Thus it enables even more indicators not belonging to the

established areas of business-success or liquidity to be considered, as the part

“Wachstumsanalyse” proves.

The structure of the system supports the desire of the IC to gain not just information

about the established areas of business-success and liquidity, but about all the sectors

13 Groll, K.-H, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG,Freiburg i.B., 1986, pg. 3214 Groll, K.-H, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG,Freiburg i.B., 1986, pg. 36 Recited from: Betriebswirtschaftlicher Ausschuss des Zentralverbands derElektonischen Industrie e.V. (Editor): ZVEI-Kennzahlensystem – Ein Instrument zurUnternehmenssteuerung, 3. Edition, Frankfurt/Main 1976, pg. 854-864



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considered as important. However, to gain the huge number of indicators to be

yielded is neither viable for the manager of our IC nor for the entrepreneurs of the

ICCs.

6.2.5. Brown and the aspect of target orientation

Mark G Brown criticises that often it is measured to much and without aims. SMEs

can’t afford this luxury as measurement costs time and money. “Small organisations

in general don’t waste time in measurement of meaningless factors and concentrate

on some small key-indicators as returns, profits, productivity” 16 or nothing at all, as

stated in the research of the SEBRAE mentioned above.

Systems as the ZVEI-system thus are to tall, to complex and work intensive for

SMEs, how else might be explained the above recited statements out of the IHK-

research concerning the reasons of SMEs not dealing with a system of indicators in

order to control their company’s success and thus leading to the statement of being

able to control without indicators?17

Brown already can give us as a rule of thumb, that a person in charge of a task should

not have more than 15-20 indicators to control18. This advice I’d like to consider in

the creation of the ICs and ICCs system of observation and evaluation.

An other point of his critic is, that companies often measure numbers they believe

they could have some relation to the companies success, although they are not able to

reason this relation. What he demands is a concrete link between the observed

indicator and the aims of the organisation. “The key to a profound system of

15Groll, K.-H, Erfolgssicherung durch Kennzahlensysteme, Rudolf Haufe Verlag GmbH & Co. KG,Freiburg i.B., 1986, pg. 32, 36-3916 M. G. Brown: Kennzahlen: harte und weiche Faktoren erkennen, messen und bewerten.Muenchen,Wien, Carl Hanser Verlag, 1997, pg. VII, 1417 Staudt/Groeters/Hafkesbrink/Treichel, Kennzahlen und Kennzahlensysteme, Erich Schmidt Verlag,GmbH, Berlin 1985, pg. 110-111 recited partly of: IHK-Koblenz (181) 1977, Kennzahlenanwendungin Klein- und Mittelbetrieben, pg. 518 M. G. Brown: Kennzahlen: harte und weiche Faktoren erkennen, messen und bewerten.Muenchen,Wien, Carl Hanser Verlag, 1997, pg. 4, 18



72

indicators is to avoid brakes between indicators, aims and critical success factors”19.

The advantage resulting for our IC and the ICCs is that we haven’t got such an

existing system of indicators that is believed to measure the companies success, but

that we are able to build a new one, considering indicators that are aligned to the

aims of the ICCs and thus measuring the real factors of the ICCs’ and therewith as

well the IC’s success.

6.3. What shall be observed in the incubated companies

The question what shall be observed in an ICC firstly leads us back to the beginning

of this chapter where we asked why observation is felt as necessary. The answer

there, shortly repeated, was to separate very bad companies, to help companies that

left the way of good performance back onto this way and the desire to condition the

entrepreneurs of the incubated companies on using indicators as well later. Asking

now again what is to be observed we receive the answer that it are indicators

informing about the performance of the ICCs and thus immediately enter into the

duty to define these indicators.

A second starting point could be the one to face the problem of the observation and

evaluation by the question what it is, we want to observe. It might be the

performance of the incubated company, but strictly spoken observing the

performance would mean to control every step taken of every process of a company.

What on the first moment might look as hair-splitting will bring us to a second

important point in the creation of a system of indicators. As the answer I’d give on

the question what is to be observed in a company is, that it isn’t the performance we

need to control, as this would cost to much time, but the fulfilment of targets derived

from the company’s vision. Then, if this target data is not reached, we’ve got to

control where the performance was not sufficient. Similar to the process of getting

deeper into the matters of the DuPont-System, a.m., when the top-indicator shows an

unsatisfying result.

19 M. G. Brown: Kennzahlen: harte und weiche Faktoren erkennen, messen und bewerten.Muenchen,Wien, Carl Hanser Verlag, 1997, pg. 50, 163, 179, 192



73

This second important point after selecting the indicators for a system is to define

target values that have to be reached.

As already mentioned at the part introducing the IC in the operation handbook, these

targets might be different from company to company. One organisation, as e.g. the

IC, has got aims that are more social orientated as e.g. helping other people, others

are more monetary orientated.

One problem faced by the IC seems to be that it has to develop an observation and

evaluation system that allows to control all the incubated companies with their

different aims. And to find one target fitting for every company. But this just seems

so in the first moment, as there are to factors helping the IC to assimilate these

targets for all the present companies. First the fact, that nearly none of the companies

have defined neither a primary nor special aims for their company. And then the fact

that as although companies on the free market as well can follow very strong

secondary aims, their main aim is to make money. This seems to be one dominating

thought if somebody enters the risk to start his own business, he wants to gain at least

that much money to nourish himself respective his family. The desire to earn at least

as much as in the previous job mainly is not considered by the majority of

entrepreneurs of our IC, as most of them enter directly out of INATEL, i.e. without

having a previous income or are that wise to know that at the beginning of their

business the main emphasis is set on work and not on earnings, which of course after

a couple of years should change. As this lack of definition of formal aims of the ICCs

is given and the only undefined aim seems to be making money the indicators we

will define in the next but one paragraph will be able to be the same for every ICC.



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6.3.1. Selection of indicators for the system

Out of the consideration of the suggestions of literature we yield, besides examples

for indicators, as well suggestions how to shape our system. There are two statements

of Brown demanding firstly a number of 15-20 indicators in order to not overtax the

person (as in an ICC it is often just one person and in the IC that wants to observe

them as well it is just one) that has to observe them. Secondly he demands a, self-

evident, relation of indicators being selected and task to be observed. 20

When we now select the indicators for the bimonthly process of our system we,

following the advice of Brown, try to find indicators linked to the areas of the ICCs

we want to observe. These in the case of the incubating companies in the technical

sector of our IC were figured at the four areas of business-success, defined as the

main aim of the companies. This, as a.m. not explicitly in the often not existing

visions of these SMEs where it should be defined, but because of general

understanding of these business organisations. Secondly there is the necessary aim of

independence, as an entrepreneur depending on other organs, as e.g. banks or other

suppliers of external capital, is not able to act and as action is the base of gaining

profit, the basic indicator for business success, the purpose or vision of the company

is in danger. In order to avoid this independence has to be guaranteed and thus

observed in order to maintain it when in danger. A third area of importance for a

technical company is the innovation. If there is no innovation in the products of a

company nobody is going to buy them, this as well is affecting the mayor aim

business success and thus needs to be observed. Exactly as the fourth area of interest

for our ICCs, the relation to their clients. As the innovativeness the relation to the

clients is less concrete as the main aim business-success, but provides a possibility of

influencing this main aim by influencing a factor that is influencing the business

success, namely the client of the company.

20 M. G. Brown: Kennzahlen: harte und weiche Faktoren erkennen, messen und bewerten.Muenchen,Wien, Carl Hanser Verlag, 1997, pg. 4, 18 , 50, 163, 179, 192



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Already at the beginning of the selection of indicators for our system we discovered

two further demands on our system of indicators, causing a dilemma. These are

firstly the demand of profound indicators yielding a reliable base of data in order to

evaluate the situation correctly and then being able to use the data received as base

for further planning of the ICCs, and the demand on indicators that should be able to

be yielded fast and easily remembering the little time the entrepreneurs have.

As we became aware it is impossible to fulfil both demands, profoundness and ease

of processing and thus fast yielding, in one system we decided to introduce two

separate systems. Before presenting the indicators we selected for the system of

indicators informing about the performance of the ICCs, I’d like to explain how we

considered the two contradicting demands on the system causing the dilemma of

“profound but costly or fast but superficially”. In order to use the advantages and

avoid the disadvantages of both solutions the whole system is separated into two

parts. One part working, the so-called bimonthly process of performance control,

with more simple indicators, able to be yielded fast and thus able to be processed

every two months and supplying important data for the observation of the ICCs. The

other part, the so-called half-yearly process of strategic planning, is working with

indicators that take more time to be yielded but bring more profound information

enabling the ICCs to refine their strategic planning of the BP. It contains mainly the

same type of information as yielded in the actual BP of the NEMP and three more

indicators which will be added to the BP and which will be presented later in the text.

As a.m. it is a half-yearly process of improving the BP with which an ICC entered. It

is not influencing the presence of the incubated companies in the IC. More about

these both processes we read in the chapter 6.4, explaining the development of the

processes.

Having defined the four most important areas for the technical ICCs of the IC and the

solution for our dilemma, resulting in two separate processes, the next job will be to

define indicators yielding valuable information about the performance in these areas.



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In this place there shall be referred to the table A2. in the Appendix informing about

the way how the following indicators are to be calculated. In the part coming next we

will explain the indicators in relation to the information they will bring us, starting

with the ones selected for the first, the so-called bimonthly, process composed, as

a.m. by indicators informing about business-success, independence, innovation and

client’s relations.

There were selected seven indicators informing about the business-success of the

ICCs. Beginning with the “turnover” and the “total expenditure”, which are not that

useful for the evaluation process as they are very company-specific, but they stay in

the list of indicators as they are to be known by heart of the entrepreneurs, which

until now unfortunately is not the case and will have to be trained. These both

indicators build the base for a further one, the “profit after tax” or short “PAT”.

The calculation of this indicator, explained in a.m. table, needs data that will be

yielded bimonthly mainly out of the so-called “cashiers-book”, which will have to be

kept from now on by the ICCs, showing the receipts and expenditures. Further there

enters data out of the “balance sheet” which is already kept by a book-keeper, needed

because of a law obliging every company to determine one professional book-keeper,

and is showing the depreciation which appear annually and thus will have to be

brought on the bimonthly base by division by 6. Lastly enter the taxes, theoretically

to be paid on the profit before tax which will be processed by a default tax specified

for companies of the size of the ICCs.

The PAT informs about how much money there remains every month (or in our

bimonthly consideration every two month) for the entrepreneurs to live on. Its value

should be at least 0, in order to pay the taxes and supposed the entrepreneur has got

an other source to live on. If it is less than 0 the company is losing value and

theoretically should be closed. But, as we will see in the next paragraph dealing with

the target values for these indicators the IC will set a fixed value above 0.



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The next three indicators we are able to use out of the DuPont system. These are the

“profit as % of turnover” and the “capital turnover that form by multiplication the

very important “Return on Investment” or “ROI”.

The “profit as % of turnover” tells how many percent of the work and capital the

entrepreneurs employed yielded profit and how many just was employed in order to

pay the costs. (1-indicator). The data needed to calculate this indicator is the PAT

which is won as mentioned in the table A2. and the turnover is won by adding the

total (operational) receipts per period out of the “cashiers-book” a.m.

The “capital turnover” tells how intensive and efficient the employed capital was

used and needs in order to be calculated the “turnover”, won as a.m. and the total

investment, won by adding the permanent investment (fixed assets, immobilised

finances) to the working capital (cash, accounts receivable, inventories) out of the

balance sheet.

The last both indicators end, by multiplication, in the so-called “ROI” (Return on

Investment) generalising the data and to get a better base of comparison between the

companies which have differently strong capital sources and thus as well different

possibilities.21

These six first indicators informing about business-success display more or less the

present situation of the incubated companies. Indicators on the one hand have to

inform about the present situation, on the other hand there are as well some that show

future developments one of them belonging to this area. This is the “range of orders

in hand” telling, as the name says, for how long the orders fixed with the ICCs’

clients give work to the respective company and the influence work has got on the

profit must not be explained.

21 See: “Du Pont System of Financial control”, American Management Association (008), quoted at:Staudt / Groeters / Hafkesbrink / Treichel, Kennzahlen und Kennzaklensysteme, Erich Schmidt VerlagBerlin, 1985, pg. 35



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The next indicator already belongs to the second area of interest for our ICCs, the

independence of other organisations. Liquidity is the base for a company’s live as it

is the ability of action. A company that isn’t able to work can’t pursue the actions

responsible for income, without turnover and just costs it can’t yield profit. This

ability of action will be measured by two indicators showing the liquidity of the

company.

Firstly there is the so-called “Liquidity 3” which, in my opinion, is the most

expressive term for liquidity, as it shows the nature of liquidity. It answers the

question: “Can we pay our creditors by disengaging values?” And is very

comfortable to be yielded, as it just needs data out of the balance-sheet. Exactly as

the other indicator, the “Liquidity 4”, we yield in this area of interest and which sees

the Question of liberty that way: Liberty as it is the independence of others, is the

higher, the higher the proper share and the lower the share of others on the total

capital is. Thus it wants to know if the total investment is able to pay for the money

of third persons in the ICC.

In the IC of the INATEL there are just companies permitted that offer a product or

service in the areas in which the proper university is active, as a.m. because of

reasons of competence. This now as well makes live easier for the IC, as one further

area of importance the ICCs of our incubation-centre have in common is the one of

innovation, as if a company manages to supply the market with new products that are

demanded it saves its survival.

The first of the three indicators in this group measures the actual success of the

innovative products, displaying their share of the total turnover. The higher their

share the better, as a high rate indicates dependence on new, more competitive

products and not on old products that are easily copied. In order to get this ratio we

need the turnover, won as a.m., and as well the turnover of the new products. To

separate this turnover of the turnover of the already established products will be extra

work for the ICCs, but might e.g. be processed by the introduction of product

numbers, where the highest numbers comprise the newest products.



79

For the next indicator, not showing anymore the innovativeness of the ICCs , but a

factor influencing the ability of being innovative, the so-called “rate of

qualification”, the companies will have to yield totally new data, not able to be

yielded out of existing documentation. This is the qualification hours and the total

numbers of working hours. The idea behind this indicator is, that qualification of the

employee acts as an influencing factor not just on the product-quality but as well on

the innovation and thus success.

Until now all indicators were able to be used for the ICCs, in order to process control

and further planning, and the IC in order to perform their evaluation. The last

indicator in this area, the “ratio of participation in events”, is just of use for the IC

and thus as well to be yielded out of the IC’s documentation. Its use is to animate the

personnel of the ICCs to participate in the qualification actions of the IC especially at

the beginning of the incubation process where qualification is needed and helps to

collect credits needed to be considered as successful, as we will see later.

The last area of importance for our incubated companies, but not of minor

importance, is the area witnessing the relation to the clients. Clients stay with our

ICCs if they are content and leave our entrepreneurs if not. The satisfaction of clients

thus indicates about the future success of our ICCs. In order to now develop

indicators we just need to think about what except the service or product, which of

course will have to be outstanding, is important for a customer.

Out of my own experience as client, on the one hand, and sales-person, on the other

hand I know that one of the most annoying situations for a client is, if one or more

parts of an order or even the whole order is not able to be delivered in time and he

has to wait for a subsequent delivery. Thus introducing an indicator observing the

performance in this point might be helpful in order to influence the customers

buying-behaviour by improving the performance. How the indicator “capability of

delivery” will be measured will be able to seen in a.m. table A2 of the Appendix.

Getting the numbers needed in order to calculate it is not that simple as with the



80

indicators mentioned before, just looking into the cashier’s-book. For this indicator

the companies have got to raise as well the sales in pieces and the backlog in pieces.

An other circumstance annoying a customer is if he feels badly advised, or even

persuaded to buy something he doesn’t need, by the sales-personnel. If a client

cancels a contract this can be because of the reason that he doesn’t need the piece

anymore, because of he found the same piece at a cheaper supplier, but as well very

often because he was convinced by the sales persons to buy something they don’t

need. This happens mainly at products that need to be explained well, as these

produced in the incubating companies of the IC. This is to be avoided by raising the

indicator informing the entrepreneur about the situation of cancelled, the so-called

“quality of sales” and if it shows a preoccupying number asking how this number

came about.

For this indicator the companies have got to raise as well the number of contracts

concluded and the number of these cancelled again.

If you ask a client when he’d like to have the good demanded or sent for repair, his

answer will be “yesterday”. A lorry driver e.g. needs his lorry in order to gain

money, every day he isn’t able to use his lorry because of e.g. a broken engine means

loss for him. The “lead time” (LET) comprising the number of days between order

and delivery, hence is an indicator mattering for the client and thus as well for our

ICCs and will have to be registered by the ICCs.

These three indicators allow just reaction on a situation when it already might be too

late, thus we’d like to introduce two indicators documenting the efforts of the ICCs

of actively influencing their customers. Therefore we selected two indicators, firstly

the “investment in marketing”, demonstrating how much of the profit made was

reinvested in marketing actions. The basic data for this indicator we are able to gain

out of the cashiers book again.

The second of these indicators of actively influencing the customer is the “effort of

sales” measured in number of sales contacts per month, which is to be registered by



81

the ICCs in order to be able to be used as indicator, but the effort pays, as the yielded

data is not just able to be used for this indicator but as well for the planning of the

sales activity.

With these 17 indicators for the bimonthly process we are as well inside the number

of 15-20 indicators given by Brown as rule of thumb in order to stay easy to survey.

The next three indicators on a.m. table A2 in the Appendix already belong to the

half-yearly process and thus are not that essential for the observation of the

companies performance, but serve more for the strategic extension of the BP as a.m.

The reason why these three indicators belong to the half-yearly process is that they

are more time costly to be yielded and remember more on market research as on

observation of a company. These three indicators are the carry on of the data already

yielded in the BP, serving there as entry-criterion showing the market-knowledge of

the entrepreneurs (see Appendix B OPHB – 1.3 selection of candidates) This data

already demanded contains the fixed costs, variable costs, gain-margin, sales price of

the product and supposed quantity to be sold.

Here enters the first of the half-yearly indicators the “ratio of market-occupation”

telling how many percents of the market are served by the respective ICC. The data

that enters this indicator ( table A2) is not that easy to be yielded, as the data of the

bimonthly indicators. The number of total clients on the market e.g. might have to be

estimated if there is no statistical number of an official organisation available. The

result it provides on the other hand allows more strategic planning and setting of

aims as the bimonthly counterparts.

The second indicator in this area is the one where most of the data yielded as well for

the BP enters. The “break-even-point” needs, as in a.m. table able to be seen, the

fixed costs, the variable costs and the price. It shall help to raise the entrepreneurs’

sense for costs and their relations as e.g. the relation of fixed costs and the quantity

of sold products needed.



82

A further view to be trained with the entrepreneurs is the view to the competitor.

Most of our ICCs try to compete the Brazilian market by producing quality, which is,

out of the reason that now it happens to be one decade that the Brazilian market is

liberated for foreign products, a still weak part of the Brazilian economy and thus

provides great chances for our ICCs. (See therefore Chapter 2 of this thesis). The

price on the other hand may not be neglected, as the client looks not just on quality

but as well on the price. More than that the economical situation here in Brazil

allows, other than in countries living for a large period in an highly competitive

atmosphere, to compete in both sectors, i.e. to produce quality exceeding the

competitors’ and to do this with a lower price. Thus in order to get a perception of

the company’s own price and the price of the competitors will be introduced the

indicator of “ratio own price price of competitors” (ROPPOC).

With this ROPPOC we finish the presentation of the system indicators of the IC of

the INATEL and move to a further important step in order to being able to perform

evaluation with them.

6.3.2. Setting of targets for the indicators

Having indicators is one thing, but bringing them to a certain maturity in order to

being able to apply them for evaluations is an other big thing. Telling one of our

young entrepreneurs that the capital turnover of his company is at 1,3 he might say

fine, but not knowing reference data he won’t be able to tell if this value is really fine

or if it is bad. This example explains that in order to being able to perform evaluation

there have to be introduced targets the ICCs are to fulfil with their performance.22

Generally there might be made one remark to this topic: As explained before, the

situation of the ICs here in Brazil is not that different as in the ICs in Germany. Most

of them exist five or less years. Needs for observation systems are growing now, as

the operational work of the ICs is getting routine and there is more time for

considerations of improvements. This leads to the fact that until now there exists no

22 M. G. Brown: Kennzahlen: harte und weiche Faktoren erkennen, messen und bewerten.Muenchen,Wien, Carl Hanser Verlag, 1997, pg. 185



83

reference material we would need in order to tell a.m. entrepreneur if his capital

turnover of 1,3 is good or not.

This is one further aim of the system of indicators introduced for the IC of INATEL,

to yield data, to save it and after a period of about five years, when we work with the

second or third generation (considering the 2 years of incubation of a product-

company) to evaluate this yielded data in order to gain indicators for the performance

in the different areas of incubation-centres.

Until this point of time in future when we’ve got this reference data we have to try to

find other targets that might be appropriate for ICCs as well. In a further line it was

mentioned that there as well is no reference data receivable for SMEs, this made us

to consider to adapt data of the Brazilian economy in general, well knowing that this

data mainly contains data of large-scale enterprises yielded in an ambient different to

the one provided by our IC, that might have influences on the general validity of

these indicators which we not even know. A large-scale enterprise for example has

got experiences an ICC can’t have because its short time participating in the market.

On the other hand it receives support of the IC for e.g. infrastructure saving them a

lot of fixed assets, which might have influence on the indicators as well. These

indicators might be unsuitable for our ICCs, thus we will use these indicators at the

beginning, until we were able to yield some especially for the ICCs, which will be

better any way than not using any indicators. Where reference numbers were

receivable not even from the Brazilian economy in general, the co-ordinator and the

manager of the IC helped with their experience, that might be short but intensive, to

define target numbers.

In order to explain the indicators we introduced a table showing how to calculate the

indicators and in the text we explained the use they will bring to the ICCs, with the

target values for the indicators we will manage it likewise. There will be the table A3

in the appendix displaying the target values for the indicators (remember that they

are mostly bimonthly) and in the text we will explain how these indicators were

gained.



84

In the first group of indicators, the bimonthly ones concerned with the information

about the business-success there are firstly the turnover, just determined to be

maximal, and the total expenditure, just determined to be minimal, as they are later in

the evaluation not considered anymore as they are entering into the more informative

profit after tax. This PAT is defined for the ICCs as follows: A student, and our

entrepreneurs are mainly students, graduating at INATEL later as engineer will earn

about R$ 2100 per month (4200 bimonthly). This as well will be the target for the

young entrepreneurs, as the PAT is the value the will live on later. A company

making less than R$ 600 per month is considered to not being able to maintain their

owners and thus this will be the minimum we set for the PAT.

A further point we’ve got to consider here are the so-called “pre-operational-

expenditures”. These emerge at the foundation of a new company and are similar to

the “pre-operational-expenditures” emerging in already existing companies at the

introduction of a new product. They occur as at the beginning the incubated company

just spends money and earns not that much, same as a new product planed by a

already existing company. Thus at the beginning the result will be a loss and not a

gain.

From Professor Luiz Antônio Cury, Faculdade de Ciências Econônicas do Sul de

Minas (Faculty of Economic Sciences of Southern Minas Gerais), in Itajubá we

received the default parameters used in the Brazilian industry in order to observe this

period in a product’s, or for us in a incubated company’s, live.23

The default parameters for the following business-branches are:

Industry:

Until 8% of the total capital might be spend at this period

The period may take no longer than 90 days

Commerce: (Not important for the IC of INATEL):



Services:

23 Prof. Luiz Antônio Cury, Faculdade de Ciências Econônicas do Sul de Minas, Brazil, 2000



85



For the next three values we, under the help of Professor Cury, were able to yield

data raised for the Brazilian economy.24 There is firstly the profit as % of turnover,

which is settled in the data of Prof. Cury with 2,3% in 1997 for electro-technical

companies and 18,8% in 1997 for companies in the telecommunicational sector. As

value for our IC working with both types of companies he considered a vale of 10%

as appropriate.

For the capital turnover his paper is providing just a Brazilian average value of 0,9 in

(descending from 1,62 in 1990 by 1,12 in 1994) For the ROI the paper of Prof. Cury

sets a value of 6.5 % (1997) and a default value of 11,0% in respect of the eloctro-

industry and 9,9% (1997) for the telecommunication-industry. Which made us to set

10% as our default. For the two values of liquidity the paper of Professor Cury as

well sets values, which being 1,38 for the L3 and 1,17 for the L4, we copied straight

ahead.

For the ratio of qualification we received an average-value for Brazil of 6%, which

we copied as well straight ahead for our companies.

The rest of the target values for our indicators were set by estimation, based on the

experience of the IC-personnel. The range of orders in hand e.g. was fixed on 4 as

target, as having just two weeks of work to do must make the entrepreneur nervous

not knowing how to keep busy his staff, and having 10 months of work in advance is

a sign for not having employed enough staff.

Defining a target for the index of innovation was difficult but if a quarter of the

turnover was made by the new products, this was considered as sufficient. Similar in

24 Luiz Antônio Cury, Análises de Empresas – Indices de Avaliação, FACEM (Faculdade de CiênciasEconômicas do Sul de Minas [Faculty of Economiacal Sciences of Southern Minas Gerais]), Brazil,1997, chapters 4.5.2+3



86

the difficulty was the determination of the value to be reinvested of the PAT into

marketing. Lectures in Germany planted in me the value 1/3 - 2/3, what let us fix the

value on 50%.

The targets for the capability of delivery is clearly to be set on 100%, as backlogs are

not to be tolerated. Likewise the target for quality of sales is to be set 0% as client

should be served the way that cancellations of contracts are not necessary anymore.

The target for effort of sales was fixed at 60 visits per month, as at the end of the

incubation process the sales person should be able to perform 3 sales-visits on 20

days per month.

The remaining indicator of the bimonthly process, the lead time, and two of the three

indicators of the half-yearly process that, as they don’t feed into the actual evaluation

process, wouldn’t need target values, are that company specific that we considered it

better to just set the aims minimum and maximum and to fix later values that are

better displaying the real situation of the company.

6.3.3. Evaluation with the indicators and the targets

Now we’ve got the indicators and the targets, the rest, the evaluation, must be simple

application of them. This might be true if we consider the evaluation at the beginning

of the incubation process, where the aim of the observation and evaluation process is

mere correction of the direction of the ICCs. Later, when the presence of a company

is at stake, the entrepreneurs of the incubated companies surely will try to argue with

the co-ordinator, displaying the good performance and trying to compensate a bad

performance in an other sector.

In order to avoid this the IC has to define firstly a weight for the 15 indicators

(turnover and total expenditure excludes as they are considered already in the PAT)

in order to be able to display to the arguing person a system of general validity for

every ICC. Another place where argumentation might appear is the actual evaluation

of the performance. But as we defined target values and out of them were able to



87

define as well minimum and maximum values for the respective indicators we were

able to introduce the following system:

We defined the maximum weight as 10 and the maximum value of performance as

well as 10. Considering a maximum performance of 10 in both of these values,

multiplied they show a maximal total performance of 100.

In the table on the next page we see listed all the 15 indicators to be considered for

the evaluation of the ICCs, this time not ordered in the groups or areas of interest for

the ICCs but grouped in order of their importance for the evaluation. PAT, ROI, L4

and II e.g. are considered as highly important and thus are put into the group

afterwards gaining 5 credits, the RPE is considered as less important and thus

grouped into the “group” receiving one credit. After classing all the 15 indicators in

one of the 5 groups we receive a total weight of 53 (see bottom left) which by the

factor 0,188... is normalised on the target 10. Multiplying the absolute weight of the

indicator with the same factor we get the relative weight, and as we see in the third

column these relative weights added up form our target value of 10.

In order to receive the table of credits given for one indicator we introduced another

excel-sheet calculating the distribution of them between the minimum and the

maximum value, which then, by a function of the programme, relates the actual value

to the reached credits corresponding. The actual value of performance has to be

entered in a.m. table 6.1 (column4) and is then copied by a simple command into the

second sheet processing the calculation. The result appears, copied by the same

command, into the first table (column 5). Simple multiplication of this value of the

fifth column with the weight in the third yields the final credits reached in this

performance. Summing the 15 values of this column up brings us the final credits of

the performance of the ICC, which for the considered one is 53.



88

Indicator Weight value 0-10 credits

5 PAT 0,94 2700 5 4,72

5 ROI 0,94 4 4 3,77

5 L 4 0,94 1,4 4 3,77

5 II 0,94 15 5 4,72

4 L 3 0,75 1 6 4,53

4 POT 0,75 7 5 3,77

4 RQ 0,75 9 9 6,79

4 LET 0,75 8 6 4,53

4 IM 0,75 25 4 3,02

3 CT 0,57 0,6 1 0,57

3 ROH 0,57 3 7 3,96

2 COD 0,38 92 6 2,26

2 QOS 0,38 10 7 2,64

2 EV 0,38 50 7 2,64

1 RPE 0,19 70 7 1,32

53 0,188679245 10 53,02Table 6.2: Calculation of the credits of performanceSource: the author’s design

Here we face the same problem a.m. as in order to evaluate we’ve got to have a

target value on which we are able to measure this value of actual performance in

order to say id it is good or bad. 25 So the co-ordinator, the manager and the author

decided to do this as follows:

25 M. G. Brown: Kennzahlen: harte und weiche Faktoren erkennen, messen und bewerten.Muenchen,Wien, Carl Hanser Verlag, 1997, pg. 185



89

In the incubation process of the IC, lasting two years, we were setting points of time

of mayor importance after 6, 12, 18 and 24 months. With the experience of the co-

ordinator and the manager we used a.m. table 6.1 and filled it with values a company

finishing respective period could or should reach and received out of the table the

corresponding credits as targets.

The result was, that a company finishing the first 6 month should bring at least 9

credits in order to pass the process, explained in the next paragraph more precisely,

“successfully”, without the need for a talk. Completing the second six moths the

company should reach at least 30 credits, at the end of the third semester 53 (as the

table 6.1 shows) and at the end of the incubation process, after two years, there

should be reached 71 credits.

6.4. Forming the process of observation and evaluation of the incubated

companies

With the indicators and their target values and the evaluation system and its target

values for the respective periods gained in the past paragraph, now we will be able to

perform the processes of observation and evaluation. Processes in plural, as we

separated the whole registration and measurement into two processes. One of them,

the bimonthly one, is highly frequent in order to guarantee the continuous

observation of the ICCs, and the other, the half-yearly one, is more profound and

aiming on the improvement of the strategic planning of the ICCs.

6.4.1. The half-yearly process of strategic planning

The need for this half-yearly process emerged in the moment, when we realised that

we are not able to yield all the data of interest in a bimonthly rhythm in order to

evaluate it. We thus separated the more profound data of the bimonthly one and

determined that for these more time costly indicators the interval of one semester

would be appropriate. This as well meant that we had to exclude them from the

evaluation process. The use of this half yearly process thus will not be to evaluate the

performance of the ICCs, but to train the entrepreneurs in strategic planning. The

result of the data yielded out of this process will form an add-on onto the data



90

displayed in the BP that served as selection criterion for the vacancy of the IC but

was based on assumed data. Now, with augmenting business activity, the

entrepreneur will be able to adapt this strategic plan more on the reality.

The process we will introduce here thus will not end in the decision if a company has

to leave or may stay, but into an add-on on the BP which resulted in the following

shape of the task already presented in the chapter 5.5. “Structuring the process by

introducing an algorithm”:

1. Definition of the task

By the pressure to yield a.m. data for this process we force he entrepreneurs of our

ICCs to preoccupy more intensive with the market they are in at least every half year.

The results they gain out of this market research shall enable them to create an add-

on onto the BP they became approved when entering the IC.

2. Process-flow: creating an add-on onto the original BP

Ignition: Another half a year has passed

Action: Entrepreneur researches the needed data for the BP add-on

Entrepreneur processes the data, develops demanded add-on and delivers it to the IC

Co-ordinator of the IC evaluate the received data on the demand of being challenging

If the data is considered as challenging this new data forms the add on to the BP

displaying the new strategic target data of the ICC

If the data is considered as not challenging enough it is send back to the ICCs in

order to process it again and enter the process-flow newly

3. Responsible person

Process responsibility: Co-ordinatorSurvey of the delivery of the needed data: Manager

4. Rules

Criterion: Challenging add-on on the BP5. Reports

None

In order to display the process-flow more clearly at this place we will add the

process-flow-chart:



91

Table 6.3: The half-yearly process of strategic planningSource: the author’s design

ICC develops +delivers BP-add-on to IC

IC doesn’taccept add-on,

IC accepts add-on, closesprocess

IC evaluatesadd-on onchallenge

ICC researchesthe needed data

Add-on is notconsidered aschallenge

Add-on isconsidered aschallenge

Needed data isresearched

BP-add-on iscreated anddelivered to the IC

6 months havepassed

X-

OR



92

6.4.2. The bimonthly process of performance control

The bimonthly process, we want to develop for the IC in order to observe and to

evaluate shall be coherent to the incubation process they are accompanying.

Therefore we want to introduce this incubation process a little bit more structured.

The whole incubation process in the IC of the INATEL is running for two years,

other ICs offer more time, three years mostly, and thus in our IC there exists the

possibility of prolongation. This now shall not be considered further, as our aim is to

bring our ICCs to maturity within the two years planned.

The first two months of the incubation process are called “period of adaptation”, as

in this time the companies settle in the premises of the incubation-centre and create

first contacts to suppliers and clients. And although the companies in this period are

far from performance that is considered as good by the IC, we will process the

observation and evaluation in order to gain a complete database in order to determine

after the period of five years a.m. our own reference data for the ICs. More than that

the immediate control of the ICCs performance will accustom them to this ritual.

The period of the first six month of incubation is called “trainee-time”, as the

entrepreneurs in this time are considered to learn how to lead their company. Of

course they won’t be dismissed in this period because of not fulfilling targets. The

so-called soft consultation will go on after this first semester, considered as a type of

close season, until the end-point of the second semester.

After this first year the first companies might be asked to leave if their performance

is considered as not just bad but hopeless and if disinterest can be seen. After this

first year the time of “hard” consultation begins, as at this time the companies can be

considered as fully settled and a certain routine must show improvement in their

performance, similar to the performance of an employee in a company after one year

must show a certain quality.

At the end of the third semester then the decisions of dismissing a company or not

shall be able to be taken purely by the value of performance shown by the evaluation.



93

After three semesters then the accompaniment and aid is considered to bring the

company to a state of maturity that allows the successful dismissal of the ICCs in

time, i.e. after the completion of the second year.

The process we will introduce will have to consider the different answers of the

different stages of incubation if the result of the evaluation says unsuccessful. Which

resulted in the following shape of the task already presented in the chapter 5.5.

“Structuring the process by introducing an algorithm”:

1. Definition of the task:

This process is the one that will decide about the ICCs permanence in the incubation-

centre. The means used therefore are the indicators defined, the targets defined and a

system of evaluation guaranteeing an equal treatment for every incubated company.

2. Process-flow: observing and evaluating the performance of the incubated

company

Ignition: Another two months have passed

Action: Entrepreneur delivers the needed data to the manager

Manager collects the data and prepares it for evaluation

Manager delivers data to the co-ordinator

Co-ordinator decides by the means of the evaluation system the success of the ICC

If the company is considered as successful it may stay in the IC

If the company is considered as not successful, there has to be locked at which stage

of development it is

If it is within the first twelve months there will follow a consultative hearing with the

co-ordinator and the manager

If it is between the 12th and 18th month there as well will follow a consultative

hearing with the co-ordinator and the manager of the IC which now have the

permission to dismiss a company performing very bad, this is not underneath the

limit of 30 that should be reached at this stage but underneath the limit of 9 credits of

the former period.

If the company is in the 18 month or more there won’t be anymore hearing, but just

the dismissal of the company.



94

3. Responsible person

Process responsibility: Co-ordinator

Preparation of the data: Manager

4. Rules

The evaluation system of the IC is default for every company

5. Reports

None

In order to display the process-flow more clearly at this place we will add the

process-flow-chart to be seen on the following page:



95

Table 6.4: The bimonthly process of performance controlSource: the author’s design

Data is perceivedas successful

2 months havepassed

Data is handed in

Discussion ofsituation, maybe dismissal

IC discusses thesituation withICC, ICC stays

ICC stays in theIC

IC prepares +evaluates data

ICC hands inthe needed data

X-

OR

successful unsuccessful

X-

OR0-12 months of

incubation

12-18 months of

incubation

18+ months ofincubation

If ICC doesn’treach targets,dismissal

Data is perceivedad not successful



96

6.5. Final remarks on the system

The system of observation and evaluation was introduced in order to control the

performance of the ICCs during their time in the IC in order to succeed the process

begun with quality in marketing, application and selection as well during the period

of accompaniment and aid.

This process until now was performed without any control. As there was no system

available where we could have copied from we developed our own system of

indicators composed of two processes. Lacking default targets for the indicators

selected we either took general values out of the Brazilian economy or experience

data of the co-ordinator and the manager.

These both factors, the lack of appropriate target values and the novelty of the whole

system bear in themselves the need of observation of the whole system. In the

practical use of the IC it might happen that an indicator, although now in theory

considered important, later, in practical use shows up as redundant and better is

cancelled. On the other hand it might happen that there appears an indicator that

needs to be adapted to the original system. This is the normal improvement process

leading to maturity of the system after a certain time.

Proper target values, that are needed badly in order to perform quality observation,

anyway will be able to be harvested after a period of about 5 years after the “sowing”

of the process in the course of this year.

7. Conclusion Gerd Seibold

97

7. ConclusionIn the present thesis we have seen the demand of the incubation-centre of the

INATEL for an operation-handbook and how the structure was developed. The

reason for this demand was the general need for structure in the IC which by this

paper is given. A further trigger for this demand was the redundancy of responsibility

in many processes, which was able to be solved by the introduction of a process-

structure. More than that improvement for the incubation-centre was brought already

during the work of reporting the processes and interviewing the persons, as interview

questions often asked as well for the need of present conditions. Besides the

demanded structure for the operation-handbook already a lot of the flesh around the

skeleton was developed in addition. Nevertheless in order to have it complete there

will have to be invested one or the other extra hour.

The part of the indicators is developed to a point in which just the implementation

lacks, which will take place in short time. Which will show possible redundancies

and lacks then being able to be eliminated in order to lead the process to its final

maturity. A further value of the developed system except being a mean of

performance measurement, is the possibility to use it in order to gain target values for

further generations of incubated companies. This makes the present paper to a basic

work in the sector of incubation-centres, not just because mentioned possibility of

yielding basic target values for ICCs, but as well because of the whole observation

and evaluation system. This is not just a demand of the incubation centre of the

INATEL but as well of lots of other IC’s in Brazil finding themselves in a similar

situation. One IC, e.g., that will introduce this system of indicators as well is the

incubation-centre of the city of Santa Rita.

Literature Gerd Seibold

XI

LITERATUREBOOKS:

Buchanan, D., Huczynski A.:, organisational behaviour an introductory

context, 3rd edition, 1997

Brown, M.G: Kennzahlen: harte und weiche Faktoren erkennen, messen und

bewerten, 1997,

Cury, Luiz Antônio: Análises de Empresas – Indices de Avaliação, 1997

Fischbach, S.: Lexikon der Wirtschaftsformeln und Kennzahlen, 1999

Groll, K.-H.: Erfolgssicherung durch Kennzahlensysteme, 1986

IP Stuttgart: Contents of the OPHB

Lacerda, Bocchi, Rego, Borges, Marques: economia Brasileira, 2000

Lambin, Jean-Jacques: Strategic Marketing Management, 1997

Poliglot APA Guide: Brasilien, APA Publications c/o Langenscheidt KG

Schneck, Ottmar: Management-Technicken, 1995

Spiegel Almanach, Weltjahrbuch 2000: Die Staaten der Erde Zahlen Fakten

Analysen, 1999

Spiegel Almanach, Weltjahrbuch 1999: Die Staaten der Erde Zahlen Fakten

Analysen, 1998

Staudt / Groeters / Hafkesbrink /Treichel: Kennzahlen und

Kennzahlensysteme, 1985

ARTICLES:

Bals, Horst: Technologie Transfer – Chancen für den Mittelstand, Brasil-

Alemanha Revista, 1997

INATEL: Manual do Aluno 2000,

Macharzina, K. Prof. Dr.: “Hohenheimer Modell zur Unterstützung von

Existenzgründungen aus der Hochschule, 1998

Müller, W.: (German Minister of Economy and Technology) in: 44 Schritte in

die Selbstständigkeit, Ihr Arbeitshandbuch für eine erfolgreiche

Existenzgründung, 1999

RMI-Informativo, first year, No. 1, 2000

Rocha J.M. (SEBRAE-MG): Presentation given 04.05.2000, 2000

Literature Gerd Seibold

XII

PAGES IN THE WWW:

http://www.anprotec.org.br/

http://www.fiemg.com.br

http://www.gtz.de/home/english/gtz/

http://www.inatel.br./incubadora/introducao.html

http://www.sebrae.org.br/

Appendix A Gerd Seibold

A B

APPENDIX

The Appendix will be subdivided in two parts, firstly the Part A containing charts

and diagram of the different chapters and the Part B containing the OPHB of the IC

of INATEL. Whereas the actual content of the Appendix looks like this:

CONTENT OF THE APPENDIX

A1. TREE OF QUALITY

A2. CALCULATION FORMULAS FOR THE INDICATORS

A3. TARGET VALUES FOR THE INDICATORS

B. THE FINAL STRUCTURE OF THE OPERATION-

HANDBOOK WITH THE ELABORATED PROCESS OF

OBSERVATION OF THE INCUBATED COMPANIES


A 1

A1. TREE OF QUALITYRight decisions are marked by an ascending line.

Wrong decisions are marked by a descending line.

Diagram A. 1 The Tree of QualitySource: Lecture DEV3 of Professor Graham Green1

This tree wants to explain that the sooner we begin to make the right decisions, i.e. to

produce quality, the higher the probability of success for our product or service.

1 Graham Green, the Tree of Quality, Lecture Design Evaluation 3, Glasgow University, 1999

Start:Possibilityof successand failureboth are ½

100 %probability ofsuccess





0 % probabilityof success

Firs

t dec

isio

n

Seco

nd d

ecis

ion

Third

dec

isio

n

Four

th d

ecis

ion

Fifth

dec

isio

n


A 2

A2. CALCULATION FORMULAS FOR THE INDICATORSBimonthly Indicators Way of calculation:

Business-success

1 Turnover (TO)

2 - Total Expenditure (TE) = gross profit

- depreciation = profit before tax

- taxes

3 = Profit After Tax (PAT)

4 Profit as % Of Turnover (POT) = PAT * 100%

TO

5 Capital Turnover (CT) = TO .

Total Investment / 6

6 Return of Investment (ROI) = PAT * 100% = POT * CT

Total Investment / 6

7 Range of Orders in Hand (ROH) = Needed working time of orders in hand

Capacity of one month

Independence

8 Liquidity 3 (L3) = Liquid funds + short-term credits + stocks

Short term debts

9 Liquidity 4 (L4) = Liquid + fixed assets

Total debts

Innovation

10 Index of Innovation (II) = Turnover made with new products

Total turnover (total receipts per period)

11 Rate of Qualification (RQ) = Qualification hours

Total working hours

12 Ratio of Participation on Events (RPE) = NPE * NEE * 100%

NTE * NEI


A 3

NPE = Number of Participants per enterprise in the Event

NEE = Number of Events in which the Enterprise participated

NTE = Total Number of Employees of the Enterprise

NEI = Total Number of Events offered by the IC

Client's Relation

13 Capability Of Delivery (COD) = Number of Quantities delivered * 100%

Number of Quantities demanded

14 Quality Of Sales (QOS) = Number of cancelled contracts * 100%

Total number od Contracts

15 Lead Time (LET) = Number of days between order and delivery

16 Investment in Marketing (IM) = Investment in Marketing * 100%

PAT

17 Effort Of Sales (EOS) = (Number of Sales Contacts)/month

Half-Yearly Indicators

18 Ratio of Market-Occupation (RMO) = (TAC + TCF - TCL) * 100%

TC

TAC = Total Active Clients

TCF = Total number of clients buying the first time

TCL = Total lost clients

TC = Total clients

19 Break Even Point (BEP) = Fixed Costs

(price - variable costs)

20 Ratio Own Price Price Of Competitors = Product Price

(ROPPOC) Mean Price of Competitors

Table A. 2 The Calculation Formulas for the Indicators (the author’s design)Additional Sources: Groll, K.-H, Erfolgssicherung durch Kennzahlensysteme and

Staudt / Groeters / Hafkesbrink /Treichel, Kennzahlen und KennzahlensystemeandBrown, M.G., Kennzahlen: hatre und weiche Faktoren erkennen, messen undbewerten andSven Fischbach Lexikon der Wirtschaftsformeln und Kennzahlen andExperience of Professor Cury FACSM Itajubá andExperience of Professor Durval FAI SR


A 4

A3. TARGET VALUES FOR THE INDICATORSBimonthly Indicators unit target

Business-success

1 Turnover (TO) R$ max

2 - Total Expenditure (TE) R$ min

- depreciation

- taxes

3 = Profit After Tax (PAT) R$ 1200-4200

4 Profit as % Of Turnover (POT) % 10%

5 Capital Turnover (CT) absolute value 0,9

6 Return of Investment (ROI) % 10 %

7 Range of Orders in Hand (ROH) months 4

Independence

8 Liquidity 3 absolute value 1,38

9 Liquidity 4 absolute value 1,17

Innovation

10 Index of Innovation (II) % 25

11 Rate of Qualification (RQ) % 6

12 Ratio of Participation on Events (RPE) % 100%

Client's Relation

13 Capability Of Delivery (COD) % 100%


A 5

14 Quality Of Sales (QOS) % 0%

15 Lead Time (LET) days min

16 Investment in Marketing (IM) % 50

17 Effort Of Sales (EOS) contacts/month 60

Helf-Yearly Indicators

18 Ratio of Market-Occupation (RMO) % max

19 Break Even Point (BEP) absolute value min

20 Ratio Own Price Price Of Competitors (ROPPOC) absolute value min

Table A. 3 The determined targets for respective indicators (the author’s design)Additional Sources: Experience of the Professor Mario Augusto de Souza Nunes and Rogerio

Abranches da Silva of the ICExperience of Professor Cury FACSM Itajubá andExperience Professor Durval FAI SR

Appendix B – OPHB Gerd Seibold

B 1

Contents:

0. General Information About The Incubation-Centre................................................. 70.1. The incubation-centre ........................................................................................ 70.2. Its history ........................................................................................................... 70.3. Its vision............................................................................................................. 80.4. Its objectives ...................................................................................................... 80.5. Its strategy ......................................................................................................... 80.6. Its relations ........................................................................................................ 90.6.1. To FINATEL, INATEL and NEMP....................................................................... 90.6.2. To GTZ and IP ................................................................................................. 100.6.3. To the ANPROTEC.......................................................................................... 110.6.4. To the RMI ....................................................................................................... 120.6.5. To FIEMG ........................................................................................................ 130.6.6. To the Prefeitura Municipal of Santa Rita......................................................... 130.6.7. To SEBRAE ..................................................................................................... 140.6.8. Overview in a graph ......................................................................................... 141. The Core-Task of INATEL ................................................................................... 151.1. Marketing ......................................................................................................... 171.1.1. Demand ........................................................................................................... 171.1.1.1. The process of continuous demand determination ....................................... 171.1.2. Service (Product) ............................................................................................. 181.1.2.1. The process of continuous service development .......................................... 181.1.3. Price ................................................................................................................ 181.1.4. Place................................................................................................................ 191.1.5. Promotion – market communication ................................................................. 191.1.5.1. The process of announcement of events ...................................................... 191.1.5.2. The process of publication for the IC ............................................................ 201.2. Help to structure the applicants’ ideas.............................................................. 211.2.1.1. The process of pre-control of business plans ............................................... 211.3. Selection of candidates .................................................................................... 221.3.1.1. General demands on a selection Process .................................................... 221.3.1.2. The process of selection of candidates......................................................... 231.3.1.3. The actual data collected.............................................................................. 241.3.1.4. Additional data demanded out of the selection process ................................ 251.4. Accompaniment and aid................................................................................... 261.4.1. Infrastructure.................................................................................................... 261.4.1.1. Process to supply the general infrastructure................................................. 261.4.1.2. Processes to supply of special infra structure............................................... 271.4.2. Services ........................................................................................................... 271.4.2.1. Help in procuring finance.............................................................................. 281.4.2.2. Help in procuring market information ............................................................ 281.4.2.3. Help in procuring human resources .............................................................. 291.4.2.4. Help in legal affairs....................................................................................... 291.4.2.5. Help in personal affairs................................................................................. 291.4.2.6. Help in building relations to other organisations............................................ 291.4.2.7. Help in looking for new premises when leaving the IC .................................. 301.4.2.8. General ask-for-aid-process ......................................................................... 301.4.3. Qualification ..................................................................................................... 311.4.3.1. Courses and seminars.................................................................................. 311.4.3.2. Fairs ............................................................................................................. 321.4.3.3. Presentation of talk-guests ........................................................................... 33


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1.4.3.4. Technical missions ....................................................................................... 331.4.3.5. Interactive meetings ..................................................................................... 341.5. Observation and evaluation.............................................................................. 351.5.1. General idea of controlling our ICCs ................................................................ 351.5.2. The two processes of observation and evaluation............................................ 351.5.2.1. The dilemma of observation and evaluation ................................................. 351.5.2.2. The half-yearly process of strategic planning................................................ 361.5.2.3. The bimonthly process of performance control ............................................. 381.6. Dismissal of the incubated companies ............................................................. 411.6.1.1. Process of “successful”-dismissal................................................................. 411.6.1.2. The process of “unsuccessful” dismissal ...................................................... 422. The Auxiliary-tasks of the incubation-centre ........................................................ 452.1. Finance (procurement of finances) (and its processes) .................................... 472.1.1. Sources of finances ......................................................................................... 472.1.2. Search for and select financial pools................................................................ 492.1.2.1. Process of searching and selecting financial pools....................................... 492.1.3. Application for finances for annual programmes and spontaneous projects ..... 502.1.3.1. Process of application for finances for annual programmes.......................... 502.1.3.2. Process of application for finances for spontaneous projects........................ 502.1.4. The other sources of finances .......................................................................... 512.1.4.1. The proper ICCs........................................................................................... 512.1.4.2. The INATEL ................................................................................................. 512.2. General Procurement....................................................................................... 532.2.1.1. Process of procuring goods and services ..................................................... 532.2.1.2. Process of procuring warehouse equipment................................................. 542.3. Human Resources ........................................................................................... 552.3.1. Organisational chart of the incubation-centre ................................................... 552.3.2. Job definitions and descriptions of the actual jobs............................................ 552.3.2.1. Co-ordinator of the incubation-centre ........................................................... 552.3.2.2. Manager of the incubation-centre ................................................................. 572.3.2.3. Receptionist of the incubation-centre............................................................ 582.3.2.4. Office-boy..................................................................................................... 592.3.3. Creation of a new job ....................................................................................... 602.3.3.1. Process of creating a new job....................................................................... 602.3.4. Acquirement of employees............................................................................... 612.3.4.1. Process of acquirement of permanent employees ........................................ 612.3.5. Promotion of personnel .................................................................................... 622.3.5.1. Process of promoting personnel ................................................................... 622.3.6. Qualification ..................................................................................................... 632.3.6.1. Courses and seminars.................................................................................. 632.3.6.2. Fairs ............................................................................................................. 642.3.6.3. Presentation of talk-guests ........................................................................... 652.3.6.4. Technical missions ....................................................................................... 662.4. Procurement of Information.............................................................................. 672.4.1. Data out of Meetings........................................................................................ 672.4.1.1. Process of extracting useful information out of passively gained external data

672.4.1.2. Process of actively gaining information in external sources .......................... 682.4.2. Participation in the “Incubanet”......................................................................... 682.4.2.1. Process of maintaining by participating in the Incubanet .............................. 683. The Frame-Tasks ................................................................................................ 713.1. Administration .................................................................................................. 733.1.1. Observing the payment of the companies’ contributions to the IC .................... 73


B 3

3.1.1.1. Process of observing the payment of the companies’ contribution................ 733.1.2. Proceedings in correlation to the companies’ contracts.................................... 743.1.2.1. Process related to the companies’ contract .................................................. 743.1.3. Comparing the computer print of daily telephone and fax calls to the list of thetelephone-exchange ................................................................................................... 753.1.3.1. Process of comparing telephone and fax lists............................................... 753.1.4. Observation of the monthly payment of the companies’ telephone and fax bills753.1.4.1. Process of observation of the payment of the telephone and fax bills ........... 753.1.5. Updating and changing the contents of the homepage of the IC ...................... 763.1.5.1. Process of updating the homepage .............................................................. 763.1.5.2. Process of contracting short time specialists and presentation guests.......... 773.1.6. Official journeys ............................................................................................... 783.1.6.1. Process of planing the trips .......................................................................... 783.1.6.2. Compensation for the use of private cars ..................................................... 783.1.6.3. Entertainment expenses............................................................................... 793.2. Controlling of the performance of the incubation-centre ................................... 813.2.1.1. Process of controlling the incubation-centre ................................................. 814. Appendix: ............................................................................................................ 834.1. The organisational chart of FINATEL ............................................................... 83


B 5

Operation-Handbook Incubation-centreThe general intention of an operation-handbook is, as to show which tasks have to beexecuted how and sometimes when in a company. If at the end there was a book tellingthe corresponding persons what to do how and when, it would be sufficient, buteverybody will agree with me saying that it wouldn’t be satisfying. Everybody workswith more virtue if he or she knows as well the reason why to do something.

Thus this book will be structured this way that we first will talk about the incubation-centre, its history, its visions objectives and the strategy to achieve these objectives.

Out of this strategy we will be able to elaborate a core-task, several auxiliary-tasks andthe frame-tasks for the incubation-centre.

The information supplied until then will be enough to explain why something is donewithin the IC, so that we can talk about what can be done by whom, how and when inorder to support the work of the IC.

We will do this contemplating the existing tasks, the occurring processes, theresponsibilities for these processes, the necessary rules to perform them and reports, butnot without an explanation of the meaning and aims of the single process for the whole.


B 7

0. GENERAL INFORMATION ABOUT THEINCUBATION-CENTRE

0.1. The incubation-centre

The “Incubadora de Empresas” or better the “Programa Incubadora de Empresas eProdutos do INATEL” (Incubation Programme for Companies and Products of theINATEL) how it named entirely, is a sub-department of the “Núcleo deEmpreendorismo” (Nucleus of Entrepreneurship) or short NEMP of the INATEL.

0.2. Its history

Since the 70ties there existed events, mainly fairs of the resident companies, that wereaimed to promote more the skills of the students as the entrepreneurial spirit. “In August1985, initiated by the mayor’s office, the INATEL and a few local entrepreneurs, it wasdecided to create in Santa Rita do Sapucaí an industrial centre called Vale da Eletrônica(Electronic Valley), in the areas of telecommunication, electronics and informationtechnology.” Which expressed the virtue of SR to progress and later enabled theparticipation of the GTZ (Deutsche Gesellachaft für Technische ZusammenarbeitGmbH, German Society for Technical Co-operation Ltd.).As virtue is not enough INATEL showed action and decided to boost their work ofqualifying students and to set more concrete targets, the targets of creating products andcompanies out of the infrastructure of the proper INATEL. In 1992 this idea became aproper co-ordinator, a statute and the name of "Programa de Incubação de Empresas eProdutos do INATEL" (Programme of Incubation of Companies and Products of theINATEL) with the aim to support action in direction of incubating companies orprojects with the equipment, the infrastructure and the help of the professors withoutany costs for the students.

Until May 1999 it was more or less unorganised and had the flair of a hobby-room,where one retires in order to work on his project. On May 1999 the IC received astructure and began, with its new manager, a secretary on half-day base and an office-boy, to work seriously as a sub-department of the NEMP (Nucleo deEmpreendedorismo, Nucleus of Entrepreneurship).


B 8

0.3. Its vision

At the beginning of every organisation and thus of every company there is a vision thatis to be pursued. Most companies’ vision is to make money by satisfying theircustomers. INATEL’s incubation-centre’s vision is different. It is to help, engagedpeople to realise their dream of the own company. Where the driving motive is to help amotive striving on monetary aims can not exist. A healthy look onto the financesnonetheless can be avoided as in order to help others the own existence has to bemaintained as well. Out of this vision there merge two other plants, firstly the canon ofobjectives that are to be further pursued and secondly a strategy that forms the way thathas to be gone in order to reach the objectives.

0.4. Its objectives

The objectives of the incubation-centre are to motivate its students, ex-students andother entrepreneurs to develop their own businesses in the area of the followingtechnological sectors:1. Telecommunication2. Electronics3. Information TechnologyThe incubation-centre wants to help them actively to achieve their objectives and asown objective thus to release healthy, strong and competitive companies into the freemarket.

0.5. Its strategy

As a.m. the natural way, after visualising ones vision and objectives, to define a wayhow one wants to reach them. This way is called strategy.This strategy describes the core-task of the company. For the incubation-centre this isthe process of making a businessman with a strong company out of an engaged dreamer.About this core-task and the process describing it we will hear more in the chapters: 1“The Core-Task of INATEL”As a body needs arms and hands and feet and eyes, except this strategy that forms thespiritual heart of the company, a company as well needs further organs that allow it toexist, as there are finance and accounting or human resources. About these we will hearmore in the chapter 2 “The Auxiliary-tasks of the incubation-centre”.


B 9

0.6. Its relations

As a company investing its whole efforts in helping others the incubation-centre ofINATEL is dependent upon others showing their interest to help as well, either byactive, practical help as offering courses in order to augment the skills of members andclients of the incubation-centre, or by seeing their main competences not in active,practical help to incubate companies but to help as sponsors providing money for thework of the incubation-centre. These companies helping the incubation-centre toperform its work one or the other way shall be mentioned below.

0.6.1. To FINATEL, INATEL and NEMP

0.6.1.1.1. Who are FINATEL, INATEL and NEMP?FINATEL:Or “Fundação do Instituto Nacional de Telecomunicações” (Foundation of the NationalInstitute of Telecommunication is the “…entity of public utility…” maintaining theINATEL “…without aims of gaining money and philanthropic”. With the followingaims:• Maintain the INATEL• Form personal specialised for the national system of telecommunication• Promote the technical and cultural teaching• Offer philanthropic services and assistance to the young people• Promote the integration between university, companies and the government• Promote studies, research and performance of services• Collaboration with public and private, national and international entities in the

execution of programmes and activities forming and improving personnel

INATEL:The Instituto Nacional de Telecomunicações is, in contrary as the name lets suppose,neither a federal nor a state – institution but a “…private establishment of superiorteaching and research and pioneer in the teaching specialised in telecommunication…“.INATEL was founded on March 3rd 1965 what means, that except 500 years Brazil thisyear we celebrate 35 years of INATEL. The philosophy behind INATEL is to “form aman for the engineering”. In order to perform this INATEL performs the followingtasks: Firstly it offers courses in the areas of Electrical Engineering, InformationTechnology and Telecommunications and take 5 years to finish. Except these under-graduate-courses there as well are offered the following post-graduate courses:Ferramentas Computacionais para Engenharia (Computing Tools for Engineering since1992), Engenharia de Comunicação de Dados (Engineering of Communication of Data1994) Engeharia de Sistemas de Telecomunicaçoes (Engineering ofTelecommunicational Systems 1995) Engenharia de Redes de Telecomunicações(Engineering of Network Systems of Telecommunication 1999). Apart these teachingtasks INATEL is involved in research and holds a incubation-centre.


B 10

NEMP:As we see in the organisational chart above INATEL is splitted up into four Pro-Directories where one, the Pro-Directory of Graduation harbours the NEMP who’s co-ordinator as well is the superior of the Manager of the IC. Its objective is to develop anentrepreneurial spirit and culture, which is achieved by the following activities:• Prevision of tendencies of the development on the entrepreneurial sector in order to

provide an appropriate course-programme• Supply of a programme of courses, rounds of talk, seminars and events supporting

a.m. objectives• Leading the IC of INATEL, which until Mai 1999 was managed in the form of a

mere project, but since then is done in the form of a sub-department with its ownmanager, staff and structure

0.6.1.1.2. What are the relations like?The incubation-centre (IC) of INATEL is, as the past few words already let presume, noorganisation on its own. It is linked somehow to this other organisation called INATEL.This “somehow” will be deciphered in the organisational chart starting at the top andfinishing with the IC of INATEL.In the organisational chart (4.1 “The organisational chart of FINATEL”) we can seenthat the IC is embeded like the heart of a lettuce into the several, a.m. organisationallayers of the organisation of FINATEL.

0.6.2. To GTZ and IP

0.6.2.1.1. Who are GTZ and IPGTZ :“The GTZ (Deutsche Gesellachaft für Technische Zusammenarbeit GmbH, GermanSociety for Technical Co-operation Ldt.)is a development co-operation enterprise. Inaccordance with the development-policy guidelines of its owner, the Federal GermanGovernment, the GTZ is working in 142 countries world-wide.”“GTZ was established in 1975 [and thus after Brazil and INATEL the third groupcelebrating an important birthday, its 25th.]... its major client the Federal GermanMinistry for Economic Co-operation and Development (BMZ)... “. “It works on apublic-benefit basis. Any surpluses generated are channelled back into its owndevelopment co-operation projects. The organisation has more than 10,000 employeesin 130 [142] countries of Africa, Asia, Latin America, the Eastern European countries intransition and the CIS [Community of Independent States] states.”

“GTZ advises people and organisations in planning, implementing and evaluatingprojects and programmes in more than 130 [142] countries of the world.To implement its project work GTZ recruits local or German experts ... .”IP:The direct work concerned with the “Projeto de Consolidação do Pólo Tecnológico deSanta Rita do Sapucaí” thus is conducted by the German company “IP” short for Institutfür Projectplanung GmbH (Institute for Project Planning Ltd.) in Stuttgart Germany,which is contracted and controlled by the GTZ by the means of project planning andcontrolling.


B 11

The IP was founded in 1979 and employs at the moment 50 persons in Germany andregional offices in Bolivia, Brazil, Chile, Malawi, Nicaragua, South Africa, Thailand,Turkey and Vietnam.It is a consulting organisation conducting multi-year duration projects in Germany andin more than 100 other countries.Their main activities are:• Management, consulting and training• Technology transfer and vocational training• Environmental protection• Protection of natural resources• And rural development and agriculture

0.6.2.1.2. What are the relations like?INATEL is supported by the IP, and thus indirectly by the GTZ, more in the way ofconsultancy than with financial help. This is the reason why GTZ and IP are not takenup into the list of sponsors in 2.1.1 “Sources of finances” although there has to bementioned, that GTZ through IP enabled qualification courses that as well were partlypaid by them.

0.6.3. To the ANPROTEC

0.6.3.1.1. Who is ANPROTEC?“ Created in 1987 the ANPROTEC (Associação Nacional de Entidades Promotoras deEmpreendimentos de Tecnologias Avançadas, National Association of PromotingEntities of Entrepreneurship of Advanced Technologies) is the organ representing theentities developing programmes of ICs, Technological Parks and Centres in Brazil.”“Its mission is to combine, represent and defend the interests of the management unitsof technical sites, centres parks and ICs, promoting these models as instruments for thedevelopment of the country aiming the constant creation and consolidation ofcompanies on technological base.”Today it is promoting two great national events: The National Seminar aboutTechnological Parks and ICs and the Workshop about Management of ICs.More than that it is developing a broad training programme and events concerningselected topics or regions. It is editing two newsletters/magazines, the INFOFAX andthe LOCUS which is able to be found on the homepage of ANPROTEC as well underhttp://www.anprotec.org.br/locus.html.Within short time there will be introduces the INCUBANET (www.incubanet.com.br),a new service establishing a point of exchange of information between entrepreneurs,clients and other interested persons.

0.6.3.1.2. What are the relations like?As its objectives demand ANPROTEC mainly represents the interests of ICs, and thusof the IC of INATEL, and other groups, but as well offers training and qualification forthe personnel of ICs, where the IC of INATEL as well is participating (e.g. 1999 inPorto Alegre). By its media ANPROTEC is an important source of information for theIC.


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0.6.4. To the RMI

0.6.4.1.1. Who is RMI?The RMI (Rede Mineira de Incubadoras, IC Network of the Brazilian state MinasGerais) is an association combining the ICs of technological base of Minas Gerais.Its mission is to support the entities promoting companies of technological base,supporting the creation of employment, generating wealth and collaborating at thedevelopment of the state.”As the ANPROTEC, which is working on national base it is the organ representing theentities developing programmes of ICs, Technological Parks and Centres in MinasGerais.The RMI as well is conducting meetings, the one conducted in 1999 in SR co-ordinatedby the personnel of the IC of INATEL, and editing one newsletters, the RMI-Informativo and a brochure making marketing for the ICs in MG (Minas Gerais), called“Incubadora de empresas – Seu Futuro está aqui”(IC of companies – Your future ishere).The RMI as well is supporting the INCUBANET (www.incubanet.com.br), the newpoint of exchange of information between entrepreneurs, clients and other interestedpersons a.m.

0.6.4.1.2. What are the relations like?Equal as ANPROTEC RMI supports the IC of INATEL by qualification of the properpersonnel, not of the entrepreneurs of the ICCs.


B 13

0.6.5. To FIEMG

0.6.5.1.1. Who is FIEMG?“The FIEMG or Federação das Indústrias do Estado de Minas Gerais (Federation of theIndustries of the State Minas Gerais) is an entity that leads the strategic process of thedevelopment of the industry of Minas Gerais, ... .”FIEMG was created in 1933 “with the objective to combine the whole industry of the ofthe State, ... in order to defend the legit interests of the industry of MG, ... .”

The strategic objectives of FIEMG are as follows:To induce the excellence of the industry of MG• Consolidating its lasting competitiveness• Institutionalising business-continuity• Trying to create an federal, national and international ambient without restrictions

“The services developed by the system FIEMG contain different sectors inDevelopment of companies, education and technology, social actions and internationalrelations for the best of the companies and their workers and dependants.”

0.6.5.1.2. What are the relations like?FIEMG analysed with the help of Mc Kinsey the situation of MG and thus knows wherehelp is needed. If then an organisation as the IC of INATEL is asking for support andthe need therefore is considered as existent FIEMG helps with financing courses andother measures.

0.6.6. To the Prefeitura Municipal of Santa Rita

0.6.6.1.1. Who is Prefeitura Municipal of Santa Rita?The Prefeitura Municipal de Santa Rita de Sapucaí (Mayor’s Office of SR):Santa Rita do Sapucaí is located in the South of Minas Gerais and was founded there108 years ago in 1892. Since this times it has got an administrative organisation, the“Prefeitura Municipal”. This organ was the initiator of the programme “Vale daEletrônica” and in September 1999 itself founded an IC, the “Incubadora Municipal”(Municipal IC), which last year helped to finance a fair and has got the co-ordinater ofthe IC of INATEL, Mr. Mario Augusto de Souza Nunes as technical consultant.

0.6.6.1.2. What are the relations like?Thus the links to the municipal IC are personalof INATEL.


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0.6.7. To SEBRAE

0.6.7.1.1. Who is SEBRAE?“The SEBRAE - Serviço Brasileiro de Apoio às Micro e Pequenas Empresas (BrazilianService of Support of SMEs) is an technical institution supporting the development ofentrepreneurial activity of small rang, dedicated to advance and spread programmes andprojects that aim on the promotion and the consolidation of the SMEs.Its purpose is to work in a strategic, innovative and pragmatic way in order to enable theuniverse of Brazilian petty-businesses to grow in a sustainable evolution under the bestpossible conditions, contributing to the development of the country as a total, ... .”SEBRAE was created by law in 1990 ... in an epoch of great changes of the economicaland political ambient in Brazil.

0.6.7.1.2. What are the relations like?SEBRAE became the main financier of INATEL and works as such on the base offinancing projects and events, the IC was applying before. SEBRAE as well is able tooffer qualification for the entrepreneurs of the ICCs.

0.6.8. Overview in a graph

FFIINNAATTEELL//IINNAATTEELL

IP

GTZ

SEBRAE

NEMP

IC

ANPROTEC RMI FIEMG PMSR


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1. THE CORE-TASK OF INATELAs results of the objectives to push young entrepreneurs out of the ambient of theINATEL -as there are students, ex-students, employees or at least persons that want tostart their business in the fields covered by INATEL- there merges a core-task of theincubation-centre (incubation-centre). As the core-task of a baker is to produce bread,the business of the incubation-centre is to make entrepreneurs.This task like the task of the baker, is formed as a process, in several steps. As the bakerhas to mix flour, water and yeast in order to get dough and then has to put it in the ovenin order to be able to get a finished bread out of the oven, the incubation-centre has toact in several steps in order to help the young entrepreneurs to become owners of astrong business. These steps -that form a process- are to be explained more detailedafter the following flow-chart that shall visualise the process a little nit further:

1.1 Marketing or:How to gaininterested

1.6 Dismissal ofthe incubatedcompanies

1.4Accompanimentand aid

1.5 Observationand evaluation

1.3 Selection ofcandidates

1.2 Help tostructure theapplicants’ ideas


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1.1. Marketing

As we already know the market segment we want to supply and the daily work showsthat there is plenty of potential our next step in order to be able to promote promisingyoung entrepreneurs will be to make them to know that there is something as anincubation-centre and then to convince them to apply for a vacancy. This step is alreadyvery important as the result of this action is to get a pool of applicants where theincubation-centre is able to select the best ones out of them. Our desire to achieve thisaims implicates the use of the instrument “Marketing”.

1.1.1. Demand

In order to make the young entrepreneurs apply for a vacancy the incubation-centre hasto offer an attractive programme of services. In order to offer such an attractiveprogramme we first have to know in what these young entrepreneurs are interested,therefore it has to be researched which are the demands of our clients. This research willhave to be a continuous process (of interviewing entrepreneurs already in theincubation-centre as they know best what they and the clients of the future need), asthere might occur new demands which we have to must satisfy in order to have later abunch of applicants out of which we can select the best in order to get the best results.

1.1.1.1. The process of continuous demand determination

The mere passive presence of the personnel of the IC within reach of the entrepreneursmakes the former to get a feeling for the demands of the ICCs but this process can besupported by actions taken by the IC.

1.1.1.1.1. By determining demand having a Pub-MeetingOne suggestion therefor is the introduction of so-called “Pub-Meetings” with all theentrepreneurs. Which firstly is to increase the information flow between theentrepreneurs in order to multiply gathered information and thus the problem-solvingpotential. Secondly for the incubation-centre to feel the clients’ problems.

1.1.1.1.2. Process-flow: determining demand having a Pub-Meeting

Ignition: A periodical date, e.g. every MondayAction: Manager organises a bar, where the group of entrepreneurs together withthe personnel of the IC can meetManager informs the entrepreneurs about the place, date and time are known

1.1.1.1.3. ResponsibilitiesManager

1.1.1.1.4. RulesNone

1.1.1.1.5. ReportsNone


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1.1.2. Service (Product)

The general product or in our case service (more widely spoken) is already defined as:1. Infra structure, e.g. business-rooms, meeting-rooms, telephone, fax, e-mail, internet,2. Services (more strictly spoken), e.g. the boy, telephone attendance, help at

procurement of information, contact o professors, basic marketing3. Qualification, e.g. courses (management, sales, …), presentation of talk guests,

technical missions

As the needs of our clients are changing, mainly in the qualification part, less ininfrastructure and services (m.s.s.), according the data gathered as demands, theincubation-centre has to create new services considered as necessary, which as well willhave to be a continuous process simply because it succeeds the continuous process ofthe determination of demand. This at the end as well leads to a continuous improvementof a.m. general services.

1.1.2.1. The process of continuous service development

1.1.2.1.1. By developing servicesGathered demands are checked if they are able to be transformed into a new service.

1.1.2.1.2. Process-flow: developing servicesIgnition: A need for service improvement, addition or change is perceivedAction: Manager discusses with the co-ordinator which changes can be madeManager introduces the changes that were decided




1.1.3. Price

As a.m. our vision is to help. In order to help we need finances and although we don’twant to make the new entrepreneurs to pay for all the services offered by us and to paythe full price, by making them to pay at least a part of all the costs we create in ourclients esteem for our work done on them and thus prevent disdain.An other possibility to show their bonds to our work and to help further generations ofentrepreneurs is to encourage them pay a certain amount of money for our work afterthey left the incubation-centre in order to help a.m. further generations.


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A further idea is to open the courses for external persons as well and thus have differentprices for entrepreneurs, students and externals.For the existing pricing system there already exists a process of observation ofpayments to be seen in chapter 3.1.1 “Observing the payment of the companies’contributions to the IC”

1.1.4. Place

“Place” firstly surely is concerned with the area where our service shall be distributed,and out of the vision we notice the clear objective to stay regional and push mainly thestudents of the own university as well in order to strengthen the “Vale Eletrónico” in theindustry region surrounding Santa Rita do Sapucaí.It secondly defines the way we offer our service to the client. For the incubation-centrethere surely doesn’t exist the possibility to distribute the service by a channel ofwholesalers and retailers, but there exists the possibility of a co-operation with otherincubation-centres in Brazil with the objective to send entrepreneurs of other areas thanthe three covered by the incubation-centre of INATEL (as there are Electronics,Information Technology and Telecommunication) to other incubation-centres seeingtheir core-capacity in this sector.

1.1.5. Promotion – market communication

Promotion is the way how we communicate our offers to the market. The questionsconcerned to this point are: What to tell when how by which media? In order to notforget one of these items I’d suggest here as well a process:

There are two general processes of market communication. Firstly the announcement ofevent process, which communicates that within a short period there is happeningsomething that might be of interest:• The selection for a new entrepreneur for a vacancy in the IC• The start of a new course organised by the IC• The date of a presentation of a talk-guest• The date of a fair of interest• Other events

1.1.5.1. The process of announcement of eventsCommunicates that there is occurring an event considered as being of interest or evenpromoted or organised by the IC

1.1.5.1.1. By announcement of an event“Imagine there was war and nobody would know it.” If nobody knows about an event,nobody participates at the event, and an event without anybody participating is no event.This might be good in relation to war, but in relation to the business of the IC it wouldbe ruinous.


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1.1.5.1.2. Process-flow: announcement of an eventIgnition: Manager receives information about an interesting event (either asplanned by him or just considered as interesting)Action: Manager decides the target group (vacancy => students of INATEL,presentation of a talk-guest => whole SR)Manager selects the appropriate media in order to process the announcementManager sets, if necessary, a deadline for inscriptionManager initiates announcement (print papers and spread them, send radio spot)




The second process of market communication would be the process of creating ageneral knowledge about the IC, as until now the incubation-centre is something like aYeti, there exist persons that have heard something about it, but nobody knowssomething for sure. Into this process there belong publication events and continuingpublication actions as:• Spreading the promotion brochure of the RMI• Hanging up banners with advertisement for the IC on the campus• Advertising in the homepage of INATEL• Presenting the work of the IC in the classes of the INATEL• Other means

1.1.5.2. The process of publication for the ICCommunicates that there exists something like an IC, and what it is and what it does.

1.1.5.2.1. By bringing the IC into public mindsIf you hear something about a vacancy in the IC, but you haven’t got the basicinformation what an incubation-centre is, this information is passing your ear. Knowingon the other hand about the offers of an IC you can react immediately.

1.1.5.2.2. Process-flow: publication of the ICIgnition: In regular frequencyAction: Manager selects the appropriate media in order to process theannouncement.Manager initiates announcement (print papers and spread them, send radio spot)





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1.2. Help to structure the applicants’ ideas

One main tool to be used during the whole incubation process is the business-plan. It isthe criterion after which the banks decide whom to give money for his or her project andwhom not. It contains the project plan after which the companies want to act in order toreach their aims, and thus it can be used as the surveyor’s rod at which the companies’performance will be evaluated afterwards in the observation process explained inchapter 1.5 “Observation and evaluation”.On the other hand the BP forms part of the so-called inscription form, needed to applyfor a vacancy in the IC, and is as well one of the criterion after which the companies areselected to be allowed to participate in the programme of the incubation-centre. As astudent of engineering, for whom our service is tailored, in general has no idea aboutwhat a BP is not to mention his capacity to set up one, there is a course offered by theNEMP which aims to offer the basics in order to enable interested persons to pass thisobstacle.The incubation centre is not involved into the business-plan-course as this is offered bythe NEMP. There is no process concerned with this BP in the OPHB of the incubation-centre.

1.2.1.1. The process of pre-control of business plans

1.2.1.1.1. By checking correctness and completenessHence, as the BP influences first the entrance of a company and secondly the furtherprocess of incubating companies the correctness and completeness of the BP of certaininterest to both, the candidate in order to enter, and the IC, as it is influencing theincubation-centre’s performance as well. This fact motivates the candidate to ask for apre-control in order to improve his BP and the IC to help with hints on deficiency at thecandidates process of structuring the BP.

1.2.1.1.2. Process-flow: Check for correctness andcompleteness of the forms

Ignition: A form entersAction: Check correctness and completenessIf the form is not correct and complete, it is send back to the applicant with marks whatto improveIf he wants he follows the suggestions made and sends it back to the incubation-centreagain the process starts from the beginning.If the form is correct and complete, it is forwarded to “selection”. I.e. form is kept bythe manager until deadline.

1.2.1.1.3. Responsible persons:Co-ordinator + manager

1.2.1.1.4. Rules:Demands on the form have to be fulfilled The criterions in order to be allowed to applyfor a vacancy are, as mentioned in “Regulamento” Art. 2º, 3º,7º and 10º:

• Development of a product or service


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• In a determined space of time• In the sectors Telecommunication, Electronics or Information-Technology (not in

order to discriminate, but as INATEL and thus its incubation-centre see their corecompetence in a.m. sectors, companies in other sectors can be mediated to an ICwhich sees its core competence in this sector)

• Obligation to the spirit of repayment by creating active contact to other (incubating)companies, offers of internship-placements to students of INATEL, a helpful handfor the IC as well after the company left the programme.

1.2.1.1.5. Reports:None as superior is involved by the checking-process.

1.3. Selection of candidates

The selection of candidates is another important step of the process of the vision to helpengaged people to realise their dream of the own company.How important it is will be shown by the following example out of business-live:As the demands of a job in a higher level of hierarchy is burdened with moreresponsibility, a manager of a company has to select carefully which employee ismature enough to carry this burden and thus can be promoted to this higher level ofhierarchy, because an immature employee most probably would fail in this job.In the context of the incubation-centre its co-ordinator as well has to select carefullywhich applicant’s idea is mature enough to persist in the market and thus can bepromoted by a placement in the incubation-centre. As an incubation’s success is directlylinked to the maturity of the incubated idea or company this process of selection of justthe most mature companies is in the interest of both, the young entrepreneurs and us, theincubation-centre, as it is the aim of both to perform a successful incubation.Thus the process of “selection of candidates” is due to high significance, as the soonerwe begin to avoid errors –which means to produce quality- the more probable is asuccessful incubation. Therefore, as in chapter 1.1 “Marketing” mentioned, a highnumber of applicants permits a more probable selection of a promising company.The selection process begins with the deadline announced in the announcement ofvacancy corresponding the process of chapter 1.1.5.1 “The process of announcement ofevents”.

1.3.1.1. General demands on a selection Process

An selection process must be based on objective criterions in order to make clear whatmatters to applying persons and able to displayed to the concerned persons why theywere selected or why not, short in order to augment transparency. This demand isalready fulfilled in the actual selection process.


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1.3.1.2. The process of selection of candidates

1.3.1.2.1. By selecting candidatesAfter the check for completeness and correctness the form is handed to a jury in order toevaluate it. The jury consists of the co-ordinator of the IC, the manager a psychologistand two specialists of the area of administration.

1.3.1.2.2. Process-flow: Selecting candidatesIgnition: The deadline appearedand the inscription form with the BP and a project plan enters the juryAction: Jury is convokedApplicants present their companyJury has got all the data (form with BP and Project-plan and impression out of thepresentation)Jury evaluates the applicants along the checklist distributing marks from 0-10 for thecontemplated 13 areas. (Sheet “Esquema de avaliação de propostas”)Within one day the winner is determined and informed, (the not so lucky ones as well.)The selected company is set a dead line of 15 days to occupy their rooms and to sign thecontract of the IC.The company settles and signs the contract.

1.3.1.2.3. Responsible persons:Selection process: Co-ordinator of the incubation-centre with the permission tonominate a commission to help him. See “Regulamento” Art. 9º

Supply of the data: managerControl of deadline: managerConvocation of the jury and invitation of the applicants for the presentation of theircompany: managerEvaluation: JuryDetermination of the winner: juryInformation of the applicants about their success: manager

1.3.1.2.4. Rules: Just correct and complete inscription forms enter the processDeadline to be keptPresentation to be heldNo other than the determined data is to enter the evaluation processInformation about success or not is to be given within 1 daySettlement of the company and subscription to the contract has to happen within 15days.

1.3.1.2.5. Report:None


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1.3.1.3. The actual data collected

The selection of candidates for the incubation-centre today is processed by theevaluation of the ”Formulário de Solicitação de Participação” the solicitors handed inand thus based on the following data yielded:

No.Paragraph

Content Measurability/Objectivity

01 General introduction of the company01.01 Company name and name of a responsible person N01.02 Company address, including tel.,e-mail, a.s.o. N01.03 Range of time the company already exists N01.04 Content of the company (product or service) N

02 General introduction of the applicant02.01 Graduation and actual profession of the applicant N02.02 Organisation structure (organisational chart) N02.03 Commercial experience N02.04 Information already gathered in order to execute the project N02.05 Resources needed out of the pool of the incubation-centre N

03 Introduction and description of the product03.01 Inform about technical and legal norms in the considered

sector (new since May)N

03.02 Report about which competitors are already in the market N03.03 Description of the objectives and areas of application of the

productN

03.04 Present (techn.) differences/advantages to the competitors N03.05 Present a technological novelty that justifies the production N03.06 Stage of the development of the product N03.07 Report about actual and possible suppliers of the company

(new since May)N

08.08 Report the process flow of the production with equipment,personnel and time needed (new since May)

04 Introduction into the product-marketing04.01 Who might be client, what might he think about the product,

what is the perspective of the company’s business (newsince May)

N

04.02 Market the company wants to supply N04.03 Report about labels, patents (new since May) N04.04 Marketing activities the company wants to launch N

05 Knowledge about the economical aspects of the company(new since May)

05.01 Predict price, cost, expenditures and profit of the product orservice (new since May)

Y


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05.02 Predict sales, quarterly for the next 2 years (new since May) Y

06 Final observations06.01 Is the entrepreneur in possession of the financial resources

considered as necessary?N

06.02 Considered way to obtain the rest N06.03 Possibility to create jobs (for apprentices) N06.04 Average planed hours to work in the premises per week Y06.05 Schedule of at least 2 members of the company available N

07 Attachments07.01 Project-plan YBasic form from Rogerio 30.01.2000, reformations May 2000)

This data is sufficient in order to realise the original objectives of our selection process,as it makes the jury to fill an evaluation sheet. But as we saw in the past paragraph theactual criterions are mostly abstract and thus not able to be evaluatedobjectively(marked with “N” in the following chart) but just subjectively. Augmentingthe number of criterions that can be evaluated objectively (marked with “Y”), as alreadybegun in May, would firstly augment the objectivity of the whole process and secondlyprovide a base of “planed data” that later in the observation processes (1.5 “Observationand evaluation”) could be used for comparison with the actual data reached by the ICCs,as for this comparison concrete and thus measurable criterions are needed.

1.3.1.4. Additional data demanded out of the selectionprocess

One process of the observation and evaluation task will be the half-yearly one, which isseen as mean in order to plan on the BP (business-plan). For this process we demand thefollowing information in addition to the BP wanted in the inscription of the IC and thuswe want to demand it in the new BP as well:

1. Break even point2. Ratio of market occupation3. Ratio of own price to competitors price


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1.4. Accompaniment and aid

The section accompaniment and aid for the incubating companies will, together with thesection 1.5 “Observation and evaluation” make the biggest part of the core process, asthese both are tasks to be processed high frequently, differently from e.g. the selectionprocess that appears just now and then.

There are several functions and processes which here shall be arranged following thethree main topics in this area as there are:1. Infrastructure2. Services3. Qualification

1.4.1. Infrastructure

The company entering the IC shall find an ambient that allows an immediate start withtheir business. Therefore a general equipment has to be installed (or maintained after theprevious company left). Examples therefore are telephone, fax mail- and internet-access, electricity and not at least a fresh painted room. After these general demands,that every company has in common, the companies have special demands as e.g. severaldesks, work-benches or cup-boards.Thus there are three processes concerned with this supply of infrastructure, oneconcerned with the creation of the general infrastructure, the other two concerned withthe special infrastructure.Whereas the process of supplying special infrastructure is already defined by the”Normas operacionais para uso da incubation-centre complementares ao regulamentogeral com base no artigo 15: quanto a solicitações de serviços e moveis” (operationalnorms for complementary goods of the IC based on art. 15: corresponding applicationsfor services and furniture) respectively “Quanto a solicitação de equipamentos noalmoxarifado” (Corresponding the application of warehouse-equipment).

1.4.1.1. Process to supply the general infrastructure

1.4.1.1.1. By supplying general infrastructurePreparing the basics as a.m.

1.4.1.1.2. Process-flow: Supplying general InfrastructureIgnition: Old company leaves the IC => room able to be renovated.Action: Manager contracts the responsible of the concerning maintenanceservice, which then contracts the janitorsJanitors fix what is to be fixed and paint the walls


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1.4.1.2. Processes to supply of special infra structure

1.4.1.2.1. By supplying services and goodsFirstly services and goods: e.g. an extra telephone, an extra table

1.4.1.2.2. Process-flow: supplying services and goodsIgnition: Need of the company for equipment.Action: The owners or partners company communicate directly with the managerManager evaluates the viability of the possibility of accomplishment of this demand andimmediately communicates back to the company.The manager then initiates the accomplishment of this demand by the janitors ifpermitted and says “sorry” if not.The janitors accomplish.

1.4.1.2.3. By supplying warehouse equipmentSecondly the warehouse equipment: e.g. work-benches, technical devices

1.4.1.2.4. Process-flow: supplying warehouse equipmentIgnition: Need of the company for special equipment:Action: The owners or partners of the company takes a copy of the contract withthe incubation-centreWith this copy he gets the equipment: against the equipment he has to leave the copy,which he will get back after bringing back the device.

1.4.1.2.5. Responsible personsProcess responsibility by the managerResponsibility for warehouse equipment: warehouse-keeper.

1.4.1.2.6. RulesNo delivery of equipment without copy of contract


1.4.2. Services

In Brazil the work of incubation-centres is often compared to the job parents growingup their children. If then the first job of parents is to provide a home for their children,which in the IC-terms was the supply of infrastructure as a.m., the next would be to helpthem where they’ve got problems. If our children e.g. still are not able to tie their shoe-laces by their own, it are the parents that help them with this task. An IC does nothingdifferent for their incubated companies as parents for their children, they offer help.Entrepreneurs, of course, have got other problems as how to tie their shoe-laces, whichthese are, and which the kind of help is the IC offers, we will contemplate now in“Services”.


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All the processes in this paragraph follow the “general ask for help process” arecongruent, so that the process-flow, the responsible person, the rules and the reports arejust mentioned in a.m. general ask for help process”.

1.4.2.1. Help in procuring finance

A general problem of young companies is to get capital. The IC therefore supplies,maintains and distributes lists of organisations that are potential financiers. As well itprocures further addresses for “business-angels” and aids, if help is needed, at fillingforms or visits at the bank.

1.4.2.1.1. by supplying addressesIn order to be able to supply the companies with these addresses there exists a pool ordata base of them. This list must be maintained and distributed frequently to thecompanies. The main sources for information are unions of ICs as the ANPROTEC(Associação Nacional de Entidades Promotoras de Empreendimentos de TecnologiasAvançadas, National Association of Promoting Entities of Entrepreneurship ofAdvanced Technologies) and the RMI (Rede Mineira de Incubadoras, IC Network ofthe Brazilian state Minas Gerais), which build a place of exchange of information andthis even more when the INCUBANET (www.incubanet.com.br) will be introduced.

1.4.2.1.2. by helping with bureaucratic correspondence (e.g.filling forms or having personal presentations e.g. in order to getcapital from capital sources)

Sometimes the entrepreneurs have problems to understand forms or are not used topresent themselves at an organisation, then they are able to get help from the personal ofthe incubation-centre who has experience with this kind of stuff.

1.4.2.2. Help in procuring market information

1.4.2.2.1. by supplying general market informationIn order to be able to supply the companies with these general information as addressesof distributors, wholesalers, retailers, representatives, suppliers, etc. there exists a poolor data base of them. This list must be maintained and distributed frequently to thecompanies.


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1.4.2.3. Help in procuring human resources

1.4.2.3.1. By help in procuring human resourcesMost of the new entrepreneurs, as most of the rest of us don’t sign employmentcontracts daily, what at least will change in the live of our entrepreneurs very soon. Butuntil this day they haven’t got that knowledge to get this managed. Thus we might offerthem our help, and if this is not sufficient enough we know somebody knowingsufficient about it, we can recommend them. Help e.g. might consist in helping theentrepreneurs to define a job description if he wants to recruit a trainee.

1.4.2.4. Help in legal affairs

1.4.2.4.1. By helping in legal affairsA company in the market segment supported by the technical knowledge of theincubation-centre of INATEL, containing Electrical Engineering, InformationTechnologies and Telecommunications lives on “New Product Development”. AndNPD very often includes legal affairs, because of new products are inventions, idealcapital that is to be sheltered of being copied without licence. Thus companiesdeveloping new products have to apply for a patent. A further aspect to be consideredconcerning production in e.g. the foodstuff or the medical sector is to fulfil demands ofexisting laws. An entrepreneur who started his business recently normally hasn’t gotexperience in this sector so that he might ask for help, which the incubation-centre willgive as in its possibilities. For problems exceeding the capacity of the IC there existcontacts to specialists.

1.4.2.5. Help in personal affairs

1.4.2.5.1. By helping in personal affairsThere might be the need to just talk to somebody. Knowing what to do is one thing andthe IC wants to help there, but feeling that it is the right thing is the other thing of notminor importance. There just to know that an decision is not made alone, but that thereis the IC motivates.

1.4.2.6. Help in building relations to other organisations

1.4.2.6.1. By helping to get in contactOwning a company is not just to produce in a silent chamber. Products have to be sold,parts to be bought, thus contact to the world around can’t be avoided, on the contrary,having this relations can make live often much easier. One big advantage of the IC nowis, that it already has got a lot of contacts to other organisations, be it governmental orbusiness organisations, and is able to pass these relations to the ICCs.


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1.4.2.7. Help in looking for new premises when leavingthe IC

1.4.2.7.1. By helping to find premisesTake more or less two years (for a product ICC, one year for a service ICC) and thecompany is readily incubated, i.e. it can leave the IC and survive on its own in themarket. Then the company needs a new place where to act from. As the IC has got a lotof relations it may be has got an easier success to such buildings or rooms and thusmight halp at this last step of the incubation process.

1.4.2.8. General ask-for-aid-process

1.4.2.8.1. By helping to find solutionsIn one single day of the personnel of the incubation-centre there appear that muchquestions which are asked and are looking for answers and help but belong to the mostdifferent areas that now we will introduce one sporadic process covering all of them.

1.4.2.8.2. Process-flow: helping to find solutionsIgnition: Entrepreneur asks manager or manager perceives help as needed, withtasks concerned with gaining information (finance and market) the ignition in additionis a monthly repeating date.Action: Manager looks for an answer or a person or organisation that can answerIf the answer received is of general interest the manager notes the answer in a data-baseManager sends the information to every companyIf not answer is given just to the company that asked

1.4.2.8.3. Responsible personProcess responsibility: manager

1.4.2.8.4. RulesInformation of general interest do will be filed and sent to every entrepreneur.



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1.4.3. Qualification

Following the picture of the parents growing up their children the next step after helpingthem to tie the shoe-laces is to show them how to tie them themselves. Qualification itwouldn’t be called with children but well with ICs

1.4.3.1. Courses and seminars

There is not very much to mention to this point, just that courses are repetitivequalification actions and seminars are held in a coherent space of time.

1.4.3.1.1. By organising coursesThe first possibility of qualification appearing in our minds might be to send therespective persons on courses or seminars. And this is what happens, if the company issettled it needs to be enabled in others than its technical skills in order to cope with themarket e.g. sales or marketing. Therefore the IC offers a course programme adapted tothe needs of the companies. This course programme on the one hand has to be strategic,as there has to be defined an aim that is to be pursued by the qualification actions, onthe other hand it as well has to be that flexible to consider emerging problems. Thusthere are two processes to allow this:

1.4.3.1.2. Process-flow 1: strategic qualification planing:Ignition: Date (e.g. 15.11.of the year before the considered year)Action: Co-ordinator and manager evaluate the needs of the companiesCo-ordinator and manager develop a course or seminar programme corresponding theevaluated needsManager manages to get the needed rooms, equipment and short time specialists.

1.4.3.1.3. Process-flow 2: operational qualification events:Ignition: Sudden occurring need either stated by manager or an entrepreneursAction: Interrogation of the (other) entrepreneurs in order to analyse if this needexists on a broad base:If this need is felt by a broad base manager informs the co-ordinatorManager develop a course or seminar programme corresponding the evaluated the exactneedsManager manages to get the needed rooms and short time specialists.If this need is not felt by a broad base, manager contacts co-ordinatorCo-ordinator and manager discuss a special programme and provide either an externqualification or do the qualification on their own (depending on the grade of thedifficulty)

1.4.3.1.4. Responsible persons:Co-ordinator and manager




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1.4.3.2. Fairs

Fairs always are a good source of information, especially market information about thecompetitors. Thus they are of interest for our incubating companies. And thus a way forthe IC in order to aid the companies would be to offer information about fairs in MinasGerais and Brazil. In the process 1.4.2.6.1 “By helping to get in contact” we mentionedthe necessity of relations and contacts and the already existing pool are a goo d sourcefor the ICCs. Another mine for contacts are fairs a second reason to make the presence,passively or actively possible for our entrepreneurs

1.4.3.2.1. By informing about fairs taking place

1.4.3.2.2. Process-flow: informing about fairs taking placeIgnition: Basically during the whole year, but principally at the beginning of theyear (or whenever the calendars with the dates of the fairs are distributedAction: Manager activates his network(organs as SEBRAE, ANPROTEC, RMIother ICs and so on) and gets the dates of the fairsManager marks the relevant information out of the bunch of data and passes this to thesecretary.Secretary types a clear list and distributes this to the incubating companies.

1.4.3.2.3. Responsible personProcess responsibility: ManagerList development and distribution: Secretary


1.4.3.2.5. ReportsOne list (as report) to the manager, one to the co-ordinator

1.4.3.2.6. By enabling the participation on fairs

1.4.3.2.7. Process-flow: informing about fairs taking placeIgnition: The programme of fairs offered is known and interesting fairs arepreselected by the co-ordinator and the managerAction: Manager adds the fair on the application plan for finances for annualprogrammes or spontaneous projects in order to manage the payment of the costsIf the payment of the costs rising by the participation of the fair is solved, managerinforms the entrepreneurs, assure their participation and organises the necessities asstand and equipment, marketing material, accommodation for the IC-membersparticipating

1.4.3.2.8. Responsible personProcess responsibility: ManagerSelection: Co-ordinator




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1.4.3.3. Presentation of talk-guests

Learning emerges out of experiences either made by oneself or out of experiences ofothers. Thus inviting talk-guests out of economy or even sports can augment thequalification by exchange of experiences.

1.4.3.3.1. By inviting talk guests to present a certain topicIf e.g. the topic marketing is perceived as urgent the IC invites on a singular base aperson presenting this topic.

1.4.3.3.2. Process-flow: offering presentations of talkingguests

Ignition: The need of qualification is perceived by the IC-personnel or stated byentrepreneurs.Action: Manager adds the topic on the application plan for finances for annualprogrammes or spontaneous projects in order to manage the payment of the costs, oractivates other finance sources (e.g. local industry, entrance-fees)If the payment of the costs rising by the presentation is solved, manager organises thenecessities as room and equipment, define the target group for the presentation (as wellstudents or citizens might participate and pay for the costs) and initiate theannouncement process

1.4.3.3.3. Responsible personManager



1.4.3.4. Technical missions

A technical mission, otherwise as the name suggests, doesn’t necessarily deal withtechnical problems a group of messengers has to solve. A technical mission more oftensends messengers in order to learn from others. In the case of the IC mostly in businessconcerns.

1.4.3.4.1. By visiting other sitesThe distinguishing point is that we go to see

1.4.3.4.2. Process-flow: initiating technical missionsIgnition: The need of qualification is perceived by the IC-personnel or stated byentrepreneurs, or an opportunity for a visit arouseAction: Manager adds the topic on the application plan for finances for annualprogrammes or spontaneous projects in order to manage the payment of the costs, oractivates other finance sources (e.g. local industry, payment by the ICCs, as costs forthese technical missions are low, in general the bus-hire)


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If the payment of the costs rising by the presentation is solved, manager organises thenecessities as a bus



1.4.3.5. Interactive meetings

This manner of qualification is a especially valuable one, as the transfer of knowledgeflows in the proper IC, as the idea is to use special knowledge of the entrepreneurs inorder to qualify their colleagues. This as well enables the entrepreneurs to pay backsome of the help received of the IC

1.4.3.5.1. By organising interactive meetings

1.4.3.5.2. Process-flow: organising interactive meetingsIgnition: The need of qualification is perceived by the IC-personnel or stated byentrepreneurs, or an opportunity for a visit arouseAction: The manager, knowing the background of the entrepreneurs and theirspecial skills, asks if he could perform such a qualification programmeManager organises rooms and equipment and announces the performance





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1.5. Observation and evaluation

As a.m. the IC hasn’t got the aims to make money. But this as well doesn’t mean, that ithasn’t got to observe and to optimise its performance. Optimising the ICs performancein general means to optimise all the involved processes. As the most tasks are alreadydefined more or less, the decision of the IC was to create a process for the only task inthe core-process that still is not defined first, in order to eliminate this bottleneck.

1.5.1. General idea of controlling our ICCs

Controlling is a word that causes an uncertain feeling in us, if we are controlled wethink we are distrusted. Distrust is not the reason why we want to introduce thecontrolling of our ICCs. Controlling is a mean of frequently mirroring if a process isstill running inside the given limits. If this is not the case it allows a fast interference inorder to bring the process back on its way.If we want to introduce controlling it is to help firstly the entrepreneurs to learn abouttheir own company and how they can display its health. This is a great tool which willbe of great help not just during their time in the incubation-centre but as well afterwardsif they are settled in the free market.Secondly it ,of course, is to be as help for the incubation-centre, the profession of whichit is to guide the entrepreneurs during its time in the incubation-centre. In order to knowwhere it is necessary to help the incubation centre of course needs some informationabout the circumstances of the entrepreneurs.

1.5.2. The two processes of observation andevaluation

Already a the beginning of the job of forming a process for this task there emerges adilemma we’ve got to solve.

1.5.2.1. The dilemma of observation and evaluation

Selecting indicators for our system we discovered two further demands on our system ofindicators, causing a dilemma. These are firstly the demand of profound indicatorsyielding a reliable base of data in order to evaluate the situation correctly and then beingable to use the data received as base for further planning of the ICCs, and the demandon indicators that should be able to be yielded fast and easily remembering the littletime the entrepreneurs have.As we became aware it is impossible to fulfil both demands, profoundness and ease ofprocessing and thus fast yielding, in one system we decided to introduce two separatesystems. The first one, a half-yearly system containing mainly the information of theactual BP of the NEMP and three more indicators which will be added to the BP, the“break-even-point”(BEP), the “ratio of market-occupation”(ROM) and the “relationown price price of competitor (ROPPOC), is aimed on the improvement of the strategic


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planning of the ICCs and shall end in an half-yearly, as the name tells, process ofimproving the BP with which an ICC entered. It is not influencing the presence of theincubated companies in the IC. The second process is a bimonthly one needing justinformation that can be yielded easily and thus fast and thus can be processed every twomonths.

1.5.2.2. The half-yearly process of strategic planning

The half yearly process will comprise three extra indicators to the indicators alreadyyielded for the BP, serving there as entry-criterion showing the market-knowledge ofthe entrepreneurs (see chapter 1.3 selection of candidates), which are the “ratio ofmarket-occupation” telling how many percents of the market are served by therespective ICC, “break-even-point”, telling the minimum number of pieces to be sold inorder to not make losses and the “ratio own price price of competitors”, comparing theICCs price to the market price of similar products.

1.5.2.2.1. By creating an add-on onto the original BPBy the pressure to yield a.m. data for this process we force he entrepreneurs of our ICCsto preoccupy more intensive with the market they are in at least every half year. Theresults they gain out of this market research shall enable them to create an add-on ontothe BP they became approved when entering the IC.

1.5.2.2.2. Process-flow: creating an add-on onto theoriginal BP

Ignition: Another half a year has passedAction: Entrepreneur researches the needed data for the BP add-onEntrepreneur processes the data, develops demanded add-on and delivers it to the ICCo-ordinator of the IC evaluate the received data on the demand of being challengingIf the data is considered as challenging this new data forms the add on to the BPdisplaying the new strategic target data of the ICCIf the data is considered as not challenging enough it is send back to the ICCs in orderto process it again and enter the process-flow newly

1.5.2.2.3. Responsible personProcess responsibility: Co-ordinatorSurvey of the delivery of the needed data: Manager

1.5.2.2.4. RulesCriterion: Challenging add-on on the BP


In order to display the process-flow more clearly at this place we will add the process-flow-chart:


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ICC develops +delivers BP-add-on to IC

IC doesn’taccept add-on,

IC accepts add-on, closesprocess

IC evaluatesadd-on onchallenge

ICC researchesthe needed data

Add-on is notconsidered aschallenge

Add-on isconsidered aschallenge

Needed data isresearched

BP-add-on iscreated anddelivered to the IC

6 months havepassed

X-OR


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1.5.2.3. The bimonthly process of performance control

The bimonthly process will comprise 17 indicators of the four areas of interest definedfor our ICCs as:1. business-success: comprising the seven indicators turnover, total expenditure, profit

after tax, profit as % of turnover, capital turnover, return on investment and range oforders in hand, informing about the business performance of the ICCs.

2. independence: with the indicators liquidity 3 + 4 telling us something about theagility of the ICCs in respect on the dependence of third persons supplying capital.

3. innovation: as most important sales argument for technical products or services willbe measured by the index of innovation, the rate of qualification and the ratio ofparticipation in events.

4. and client’s relation: as the client is the one who decides if a company makes profitor not the companies are educated to measure if the clients are content by theindicators of capability of delivery, quality of sales lead time, investment inmarketing and the effort of sales.

1.5.2.3.1. By observing and evaluating the performance ofthe incubated company

This process is the one that will decide about the ICCs permanence in the incubation-centre. The means used therefore are the indicators defined, the targets defined and asystem of evaluation guaranteeing an equal treatment for every incubated company.

1.5.2.3.2. Process-flow: observing and evaluating theperformance of the incubated company

Ignition: Another two months have passedAction: Entrepreneur delivers the needed data to the managerManager collects the data and prepares it for evaluationManager delivers data to the co-ordinatorCo-ordinator decides by the means of the evaluation system the success of the ICCIf the company is considered as successful it may stay in the ICIf the company is considered as not successful, there has to be locked at which stage ofdevelopment it isIf it is within the first twelve months there will follow a consultative hearing with theco-ordinator and the managerIf it is between the 12th and 18th month there as well will follow a consultative hearingwith the co-ordinator and the manager of the IC which now have the permission todismiss a company performing very bad, this is not underneath the limit of 30 thatshould be reached at this stage but underneath the limit of 9 credits of the former period.If the company is in the 18 month or more there won’t be anymore hearing, but just thedismissal of the company.

1.5.2.3.3. Responsible personProcess responsibility: Co-ordinatorPreparation of the data: Manager

1.5.2.3.4. RulesThe evaluation system of the IC is default for every company



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In order to display the process-flow more clearly at this place we will add the process-flow-chart:

Data is perceivedas successful

2 months havepassed

Data is handed in

Discussion ofsituation, maybe dismissal

IC discusses thesituation withICC, ICC stays

ICC stays in theIC

IC prepares +evaluates data

ICC hands inthe needed data

X-OR

successful unsuccessful

X-OR

0-12 months ofincubation

12-18 months ofincubation

18+ months ofincubation

If ICC doesn’treach targets,dismissal

Data is perceivedad not successful


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1.6. Dismissal of the incubated companies

Until now the process of incubation ends with two parallel tasks, the accompanimentand aid process and the observation and evaluation process. Our feeling tells us, thatthis after two years of incubation can’t be everything. We demand an official processwith the “best wishes” and the possibility of further interaction. This might be the offerof further possibility of participation offered of our side or the support of the IC offeredby the side of the entrepreneurs, that surely want to demonstrate their gratitude to the ICnow and then. One possibility could be to inaugurate a “Club of ex-ICCs” similar to the“Clube de ex-alunos do INATEL“ (Club of ex-students of the INATEL).

Until now we mentioned just the dismissal out of the favourable reason of goodperformance in the IC, which occurs more or less two years after the entrance of theICC. But for a dismissal of a company there are two reasons, the first one, as a.m. –andthe easier one of both to be handled- is the dismissal because of a that good performanceof the company, that can be considered as strong enough to survive in the free marketby its own. There the process of dismissal will look a little different as if we have toseparate from a company because of the reason that it wasn’t able to fulfil our hardcriterions including their own objectives marked in their project-plan.

1.6.1.1. Process of “successful”-dismissal

The igniting spark for this process is a good result in the observation processes and theincubation time coming to its end. This might be at the end of the two years period for aproduct-ICC, one year for a service-ICC, stated as standard time.In two years (respective one year) time there was growing more than a simple businessrelation between consultant and client and thus a dismissal can’t be saying good bye andsetting a deadline when to leave.There must be a transition period, where the company and the manager of theincubation-centre together look for premises for the company.A further contact is wishful firstly out of a.m. personal reasons, then as well in order tocontrol the IC’s performance further. The incubation process is like the attempt ofparents to teach their child how to write a bicycle. In the moment when they let theirchild go, which can be seen as dismissal process, they won’t see if their offspring doeswell and knows how to ride. It is necessary to wait some metres. Only then after a shortperiod they’ll see if the attempt was an success or not.What we can see on ourselves is that still after long time of dominating the bike a fallcan not be excluded. What we wouldn’t do now is to blame our parents anymore. Thusas well in the observation of incubated companies we’ll have to define a space of timewithin which it is reasonable to go on with the observation and when there is no morerelation between successful incubation process and companies behaviour visible. TheICs in Germany speak of a period of five to seven years in total, i.e. including the twoyears IC.In order to be able to yield this information we need as well the permission and co-operation of the yielded companies. In order to go on with the evaluation of thesecompanies’ performance we need further access to their data.


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Thus we’ve got plead for the companies collaboration so that they offer us the neededdata voluntarily. The yielded data then might be used to round the system of indicatorsby the final success data of the IC, how many percent of the incubated companiessurvive.

1.6.1.1.1. By dismissing a “successful” companyIf a company leaves the incubation-centre successfully the IC, as a.m., wants to try tokeep in contact in the interest of both parties. When dismissing one ICC there as wellhas to be considered that an other one wants to enter and thus the place should be ableto be prepared for this new ICC.

1.6.1.1.2. Process-flow: dismissing a “successful” companyIgnition: After the observation and evaluation process the company is consideredto be able to survive on its own in the market (this is normally after two years forproduct ICCs and after one year for service ICCs) or the entrepreneurs want to leave theIC on their own initiative.Action: Manager checks if the objects lend to the ICC by the IC are complete innumber and consistence, if the bills (e.g. for telephone and fax) are paid.If not, he makes the entrepreneur pay what has to be paid.If yes, the manager asks for the new address of the company (if unknown until then) andoffers the membership of the “Club of ex-ICCs” (if this or something else is to beintroduced)


1.6.1.1.4. RulesNormal dismissal at two years for product ICCs and one year for service ICCs


1.6.1.2. The process of “unsuccessful” dismissal

It happens not very often, but there exist cases that there was seen that the company isdoing not very well in the IC. This means, that the entrepreneur is causing defect tohimself, by acting unwisely with his money, and to the IC, by occupying a place thatcould be better used by a more successful company. Then the IC has to intervene and toask this entrepreneur to leave the IC, in order to enable the incubation-centre to fulfil itsdestination to bring up strong companies ready for the market.

1.6.1.2.1. By dismissing a “unsuccessful” companyIf a company leaves the incubation-centre unsuccessfully the IC will express that it isvery sorry to having to dismiss the company. As well in this case there has to beconsidered that an other one wants to enter and thus the place should be able to beprepared for this new ICC.


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1.6.1.2.2. Process-flow: dismissing a “unsuccessful”company

Ignition: After the observation and evaluation process the company is consideredto not be able to survive on its own in the market but harm itself and the IC if it wouldstay in the programme or the entrepreneurs want to leave the IC on their own initiative.Action: Manager checks if the objects lend to the ICC by the IC are complete innumber and consistence, if the bills (e.g. for telephone and fax) are paid.If not, he makes the entrepreneur pay what has to be paid.





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2. THE AUXILIARY-TASKS OF THE INCUBATION-CENTRE

As every other company the incubation-centre except its core-task has to deal withseveral other tasks in order to do its job well. These other tasks are able to be seen asprocurement tasks as their sense is to supply the company with the different procuredgoods and services. There are mainly four types of objects to procure as there are inalphabetical order:1. Finances2. General Procurement3. Human Resources4. InformationThe absence of these tasks would influence the work of the incubation-centre, but theincubation-centre as such would still be recognisable. Other, the absence of the core-task would cause a loss of objectives and vision and the incubation-centre would not berecognisable as such anymore. To make this more visible a diagram:

The auxiliary-tasks

Core-task

Finance

Information

Human Resource

General procurement


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2.1. Finance

We’ve got to differ between the two areas of application of finances. The first area isthe area of financing the expenses for our clients, e.g. looking fore programmes they canapply in order to get “cheap” credits or to help them to find a business-angle. This typeof finances are taken care in the core process.The second area is the area of financing all the expenses concerned to the work of theIC as there are courses for the personnel, official journeys, external short-time-expertsand so on. Beginning with the definition of our main financiers we then describe how toapply for the programmes.

2.1.1. Sources of finances

As a.m. there are several organisations that are related to the incubation-centre ofINATEL some because of their financial help they provide to the incubation-centre,some because of other help they supply. The actually financing organisations are:

2.1.1.1.1. INATEL2.1.1.1.2. SEBRAE2.1.1.1.3. The proper ICCs

These three financiers supplying money for the work of the incubation centre ofINATEL as well belong to three groups of sources as there are:

Firstly organisations which offer monetary sponsorship for incubation-centres as thereare known until now: FIEMG, CNPQ, IEL and mainly, because until now the onlyactivated sponsor, SEBRAE. Into this group we as well include the “prefeitura” (themayor’s office). The main objective of these organisations is to sponsor thequalification of the skills of both, the personnel of the ICs and the incubatingcompanies. They don’t supply money for the operational expenses of the IC as e.g.salaries of the employees and electricity. The way to make them pay is mainly byapplying to them for sponsorship by an annual project plan, but as well by a project planfor single events.

Secondly the entrepreneurs which, as they are the companies to be promoted, bring justa minor part of the money needed to pay the costs in form of a monthly rent to be paid.Or, if they’ve got special needs, e.g. if they want to have their own chair, a second andthird telephone or if they want to do additional marketing, they pay these cost on theirown.

Last but really not least: INATEL. Until this year INATEL paid about 81% of the costsof the IC. But this year the incubation-centre of INATEL was able to gain a sponsorshipof SEBRAE and thus the onus on INATEL was reduces. INATEL still is coming up forthe general costs of the IC because there still wasn’t found a sponsor paying for thiskind of costs. And the entrepreneurs as a.m. are not financial strong enough to be citedfor payment of the whole costs as there are:


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• Rooms, including water, light and electricity• Hardware as furniture and special equipment out of the stock of the

university• And information technology as computers with e-mail and internet

access, telephone and fax• Salary of the employed service personnel• But as well for courses and appointments for the development of the

entrepreneurs’ skills exceeding his telecommunicational skills.

INATEL itself is financed in the year 1999 as shown in the diagram below to 85% ofstudent-fees and to 15% of incomes of sales of own services, which shall move back tothe former percentages of 55% student-fees and 45%

As target to this diagram there might be remarked, that the payment of the companiesequalise the operating costs of the IC as there are mainly the salaries of the IC-team,water, light and electricity, fax and telephone within SR.

Concerning the procurement of finances there are several processes to be considered. Inthe area of the sponsoring organisations there are mainly three tasks to be processed.The first one is to yield sponsors supplying monetary help to ICs and select to which toapply. The second is a process of application for annual programmes of pecuniaryresources (strategic, similar to course planing). The third one of application for events(operational, similar to course planing).

Student fees:Target: 55 %Actual: 85 %

Incomes of services sold by INATEL’s service-centres:Target 45%Actual: 15% (in 1999, as it was a bad year, else ~ 50%)

INATEL

Companies:From May 1999 on: 18%From 2000 on: 7%

NEMP:From May 1999 on: 81%From 2000 on: 31%

SEBRAE:From May 1999 on : 1%From 2000 on: 62%

Total costs for the incubated companies


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2.1.2. Search for and select financial pools

As the vision of the IC is not to make profits, but to offer help the programme the IC isable to perform depends on the finances it is able to yield, thus the task of procuringfinances is very important for the IC as if there are no finances are obtained it is verylimited in its actions.

2.1.2.1. Process of searching and selecting financial pools

As the procedure of applying for these finances is very costly in respect of time, so thatthere isn’t the time to apply at any possible resource. Thus the IC has to select where toapply an where not. After taking this decision the applications are able to made.

2.1.2.1.1. By searching and selecting financial poolsIn order to be able to select for which financial source to apply there exists a pool ordata base of them. This list must be maintained frequently. Big suppliers of informationto this concern are the a.m. ANPROTEC and the RMI.

2.1.2.1.2. Process-flow: searching and selecting financialpools

Ignition: Low work load or fixed date within every month / two months, to beconsideredAction: Manager has to enter mail/read magazine/ consult RMI and ANPROTECand check what’s changed.Manager discusses newly appeared programmes with the co-ordinator, inform himabout expired ones.Manager adds news to the consisting list cancel expired programmes of the list.Manager and co-ordinator decide under the assistance of the Pro-Director ofDevelopment to which of them to apply

2.1.2.1.3. Responsible personsProcess responsibility: managerResponsibility for the selection: Co-ordinator and Pro-Director of Development(defined in the rules of the INATEL)


2.1.2.1.5. ReportsEvery change (new source or expiry) has to be reported to the co-ordinator


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2.1.3. Application for finances for annualprogrammes and spontaneous projects

In order to convince a sponsor to give financial help to the incubation-centre, we’ve gotto present a project plan to them after which they decide if and how many help they canoffer us. There are generally two different programmes offered by the sponsors. The onesupplies money for programmes planed in advance for one year and the other offersmoney for spontaneous projects that have to be financed.

2.1.3.1. Process of application for finances for annualprogrammes

2.1.3.1.1. By applying for finances for annual programmesAn IC is expected to be able to plan the major part of its work in advance and thus applyfor pecuniary resources as well in advance.

2.1.3.1.2. Process-flow: application for annual pecuniaryresources

Ignition: IC comes to know the date of entry of applications fixed by therespective organisation (e.g. SEBRAE)Action: Co-ordinator and manager evaluate the needs of the IC (including theones of the companies)Co-ordinator and manager develop a programme of activities for the next year which aswell is to be done under the assistance of the Pro-Director of DevelopmentManager sends the developed programme to the corresponding organisation

2.1.3.1.3. Responsible personsProcess responsibility: manager


2.1.3.1.5. ReportsAfter letting us have their financial help the sponsors of course want to see if we usedthe supplied money the way we promised at the application for it and with whichsuccess thus at the end of the concerned period we must give them an adequate report.

2.1.3.2. Process of application for finances forspontaneous projects

2.1.3.2.1. By applying for finances for annual programmesThis a.m. planing of the educational programme for the incubating companies isperformed by the IC but as well the possibilities for sponsorship of spontaneous actionsand events is utilised.


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2.1.3.2.2. Process-flow: application for pecuniary resourcesdetermined for events:

Ignition: Sudden occurring need or ideaAction: Reflection of viability and necessity of the eventCo-ordinator and manager develop a programme of activities for this single event againunder the assistance of the Pro-DirectorManager sends the developed programme to the corresponding organisation

2.1.3.2.3. Responsible personsProcess responsibility: manager


2.1.3.2.5. ReportsAfter letting us have their financial help the sponsors of course want to see if we usedthe supplied money the way we promised at the application for it and with whichsuccess thus at the end of the concerned period we must give them an adequate report.

2.1.4. The other sources of finances

2.1.4.1. The proper ICCsThe way to make the entrepreneurs pay belongs to the administrative work of theincubation-centre and is thus explained in the respective chapter.

2.1.4.2. The INATELThe payment of INATEL until now works like the bride’s father, what at the end of theparty is to be paid INATEL pays. Thus there is no process of application or similarthings.


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2.2. General Procurement

This paragraph contains all purchases concerning physical goods not determined for theuse of the entrepreneurs as for example a new chair. Here we as well can subdivide theprocurement in: Procurement of goods and services and in procurement of warehouseequipment.

2.2.1.1. Process of procuring goods and services

As a.m. there are two processes corresponding the ”Normas operacionais para uso daincubadora complementares ao regulamento geral com base no artigo 15”: firstly“quanto a solicitações de serviços e moveis” (operational norms for complementarygoods of the IC based on art. 15: corresponding applications for services and furniture)for goods and services

2.2.1.1.1. By procuring goods and servicesProcurement of material like paper, pencils and so on as well as procurement ofequipment as furniture and computers has to be processed the same way as theprocurement of these things by the entrepreneurs.

2.2.1.1.2. Process-flow: procuring goods and servicesIgnition: Need of the IC for equipment.Action: Manager of the IC communicates directly with the responsible person ofthe INATELRespective evaluates the viability of the possibility of accomplishment of this demandand immediately communicates back to the manager.Manager then initiates the accomplishment of this demand by the janitors if permittedThe janitors accomplish.

2.2.1.1.3. Responsible persons:Process responsibility by the manager

2.2.1.1.4. Rules:No delivery of equipment without form



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2.2.1.2. Process of procuring warehouse equipment

The other one of the two a.m. corresponding the ”Normas operacionais para uso daincubadora complementares ao regulamento geral com base no artigo 15” is “Quanto asolicitação de equipamentos no almoxarifado” (operational norms for complementarygoods of the IC based on art. 15: corresponding the application of warehouse-equipment) for warehouse equipment as seen in the text.

2.2.1.2.1. By procuring warehouse equipmentProcurement of equipment like overhead-projectors, video-beamers or flip-charts and soon. It has to be processed the same way as the procurement of these things by theentrepreneurs.

2.2.1.2.2. Process-flow: procuring warehouse equipmentIgnition: Need of the IC for special equipment may be video beamer for apresentation).Action: The manager fills the requisition form.With this form he gets the equipment: against the equipment he has to leave the form.

2.2.1.2.3. Responsible persons:Process responsibility by the manager

2.2.1.2.4. Rules:No delivery of equipment without form



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2.3. Human Resources

The IC, as it is no company on its own, but a department of the department NEMP ofthe INATEL hasn’t got its own human resource department. Thus, as the administrativeprocesses of this task are dealt with in INATEL, the processes concerning HR in the ICare some few. But first some fix data within the IC:

2.3.1. Organisational chart of the incubation-centreAs the IC of the INATEL is composed of just 4 persons there wouldn’t be a reason tocreate an organisational chart for it, but on the other hand this allows us to extend theIC’s organisational chart that way, that it as well shows its relation to theFINATEL/INATEL.See therefore the proper chart: 4.1 “The organisational chart of FINATEL”

2.3.2. Job definitions and descriptions of the actualjobs

Present OPHB is to explain the IC thus it tries to define processes and enjoin algorithmson them. Surely not every content of the IC forms a process, but although not being aprocess fixed data has to be defined as well, as we saw above in the organisational chart,and as we will see in the job definitions and descriptions as well.

2.3.2.1. Co-ordinator of the incubation-centre

2.3.2.1.1. Exact job designationCo-ordinator of the NEMP

2.3.2.1.2. Department of the jobNEMP (Núcleo de Emreendedorismo)

2.3.2.1.3. Superior of the holder of the jobPro-Director of Graduation

2.3.2.1.4. Direct subordinate personsManager

2.3.2.1.5. Substitution by...Manager

2.3.2.1.6. Main aims of the job• Transposition of the strategy of the IC• Supervision of the strategical work of

the IC• Representation of the IC

2.3.2.1.7. General aims of the job• Representation of the IC in front of the

directory of INATEL, in public, etc.• Strategic planning of the activities of

the IC


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• Technical orientation of the IC• Supervision of the activities of the IC in

order to guarantee the best possibleeffectiveness and efficiency

• Realise the needed steps for a gotdevelopment of the IC

2.3.2.1.8. Limitation of responsibilities• Total financial limitation, i.e. any

money to be spent has to be approvedby a subordinate organ

• Selection of resources: financial andmarketing (order to use the marketing-means of the INATEL

2.3.2.1.9. Formal demands on the holder of the jobUniversity Professor with qualification inadministration and special qualification inentrepreneurship

2.3.2.1.10. Collaboration with other posts• With the proper INATEL respectively

the representation of the interests of theIC

• Contacts with external organisations2.3.2.1.11. Participation in meetings and organs

As representative of the IC in periodicaland special meetings of the ANPROTECand the RMI

2.3.2.1.12. Budget of the placeUntil now there is no budget defined, but itis planed to assign budgets onto thedepartments.

2.3.2.1.13. Place of workProper office

2.3.2.1.14. Time of work8 h/week

2.3.2.1.15. Salary groupProfessor titular de tempo integral (Full-time Professor)

2.3.2.1.16. Salary + overtime• Salary: respective salary-group• Overtime: unpaid

2.3.2.1.17. Vacations30 days in January

2.3.2.1.18. Social security• State-security by the INSS• Security by the INATEL’s PREVER

2.3.2.1.19. Special remarks (confidence)none


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2.3.2.2. Manager of the incubation-centre

2.3.2.2.1. Exact job designationManager of the IC

2.3.2.2.2. Department of the jobIncubation-centre

2.3.2.2.3. Superior of the holder of the jobCo-ordinator of the NEMP

2.3.2.2.4. Direct subordinate personsReceptionist

2.3.2.2.5. Substitution by...Receptionist

2.3.2.2.6. Main aims of the job• Supervision and co-ordination of the

operational work of the IC• Provide all the necessities enabling a

good performance in the IC and theICCs

• Continuous improvement of the core-tasks of the IC

2.3.2.2.7. General aims of the jobThese are to be seen in the OPHB of the ICin general as his work is containing thesupervision and processing of the core-tasks, the auxiliary-tasks and the frame-tasks.

2.3.2.2.8. Limitation of responsibilities• Determination of the programme

supplying resources for the IC• Selection and dismissal of ICCs• Specify dates and places which are to be

occupied by the companies within theIC

• Decisions about items concerning theinfrastructure of the IC as well as thelay out of the rooms etc.

• Alteration of the strategic programme ofthe IC

2.3.2.2.9. Formal demands on the holder of the• Graduation in administration• Experience in administration of

incebation-centres2.3.2.2.10. Collaboration with other posts

• Communicating the homepage with theIT Department

• When substituting the co-ordinator2.3.2.2.11. Participation in meetings and organs


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None (just when substituting the co-ordinator)

2.3.2.2.12. Budget of the placeUntil now there is no budget defined, but itis planed to assign budgets onto thedepartments.

2.3.2.2.13. Place of workProper office


2.3.2.2.15. Salary groupTo be determined further reason see specialremarks

2.3.2.2.16. Salary + overtime• Salary: respective salary-group• Overtime: unpaid

2.3.2.2.17. Vacations30 days in July


2.3.2.2.19. Special remarks (confidence)Until now the job is occupied by a trainee,thus further details concerning topics as e.g.will have to be negotiated with the INATEL

2.3.2.3. Receptionist of the incubation-centre

2.3.2.3.1. Exact job designationReceptionist


2.3.2.3.3. Superior of the holder of the jobManager

2.3.2.3.4. Main aims of the job• Reception of visitors and clients of both

the IC and the ICCs• Supporting the manager where needed• Reception of phone-calls and faxes for

both the IC and the ICCs2.3.2.3.5. General aims of the job

• Receive clients and visitors• Receive telephone-calls• Operate the fax• Co-operate with the personnel of the

incubation-centre and the companies


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• Organising of the documentation of theIC

• Editing charts and documents• Purchase of stationary and other

consumption materials2.3.2.3.6. Formal demands on the holder of the job

• Completion of the 2nd grade• If possible with courses in the

administrative area2.3.2.3.7. Place of work

• Desk conveniently equipped• Telephone, Fax


2.3.2.3.9. Salary + overtimeSalary: respective salary-group

2.3.2.3.10. Vacations30 days in July


2.3.2.3.12. Special remarks (confidence)Until now the job is occupied by a trainee,thus further details concerning topics as e.g.will have to be negotiated with the INATEL

2.3.2.4. Office-boy

2.3.2.4.1. Exact job designationOffice-boy


2.3.2.4.3. Superior of the holder of the jobManager

2.3.2.4.4. Main aims of the job• Internal and external operational work

as deliveries, payments and smallpurchases for both the IC and the ICCs

2.3.2.4.5. General aims of the job• Delivery of correspondences and

internal and external documents• Work related to bank, post and

purchasing of raw material for theincubated companies

2.3.2.4.6. Formal demands on the holder of the job• Studying in the first or second grade• Age until 17 years


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2.3.2.4.7. Place of workDesk ore place where he can prepare andorganise the work of the day


2.3.2.4.9. Salary groupOffice-boy

2.3.2.4.10. Salary + overtimeSalary: respective salary-group

2.3.2.4.11. Vacations30 days in January


2.3.2.4.13. Special remarks (confidence)None

2.3.3. Creation of a new job

There might be changes in the personnel-structure because the need of further jobsperforming the huge number of tasks of the IC. This probability is considered in thefollowing processes

2.3.3.1. Process of creating a new job

2.3.3.1.1. By creating a new job descriptionThe first of the some few processes a.m. might be to create a new job, respectively tocreate a job description for every new job created in the IC or to change existing onese.g. if jobs are shared.

2.3.3.1.2. Process-flow:Ignition: Workload gets that much that a new job has to be created or a change instructure is seen as more advantageous as the current structure.Action: Co-ordinator discusses this point with the Pro-Director of GraduationHe communicates this with the HR department of INATEL in order to check if and if atwhich salary this new place might be permitted to be created..He either doesn’t permit the new place and the co-ordinator’s dreams are buried or hepermits the new place and the process goes on like this (at this stage the interference ofsuperior levels is no more needed):Co-ordinator considers all the items of the job description.Co-ordinator adds the results of this to the OPHBParallel, in a first step, the vacancy is announced internally (for personnel of INATEL),applications are asked to send until a certain date to the direction of the manager.Applications are receivedManager collects all received applications and sends them after expiry of the deadline tothe co-ordinator.


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The co-ordinator preselects applications and appoints interviews with the preselectedones which in the same moment are invited to a psychological check-up with thepsychologist of the INATELInterviews are held and, if possible, a final selection is madeIf no selection was able to be made the vacancy is announced in a second step forexternals and the same process is performed with the applications of the externals,which exceeds the procedure for the internals just in the point that besides thepsychological check-up there as well a medical check-up is wantedAll applicants are informed about their success, the selected person is invited for to signthe contract.The selected person signs the contract.

2.3.3.1.3. Responsible personsCo-ordinator and Pro-Director of Graduation

2.3.3.1.4. RulesThe Pro-Director and the HR department are to be involved into the decission if a newjob is generatedIn a 1st level there has to be made an internal announcementIf no person was able to be selected the announcement is to be repeated externallyFor externals a medical check-up with the doctor of the INATEL is to be processesFor both, externals and internals, a psychological check up with the psychologist of theINATEL is to be processed.

2.3.3.1.5. ReportsReport of necessity of a new place to the Pro-Director by the co-ordinatorReport of termination of the process with respective results to the HR department of theINATEL by manager

2.3.4. Acquirement of employees

The process of acquiring new personal involves not as much personal and hierarchies,and is thus faster and easier to be processed as the creation of a new job.

2.3.4.1. Process of acquirement of permanent employees

2.3.4.1.1. By acquiring a new employeeAn other process is the selection of a new person for a vacancy. There is no interferenceof an higher level necessary as there is no new job to be created.

2.3.4.1.2. Process-flow:Ignition: A member of the IC quits the job, a vacancy will appear within shorttime.Action: The vacancy is announced, applications are asked to send until a certaindate to the direction of the manager.Applications are received


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Manager collects all received applications and sends them after expiry of the deadline tothe co-ordinator.The co-ordinator preselects applications and appoints interviews with the preselectedones which in the same moment are invited to a psychological check-up with thepsychologist of the INATELInterviews are held and, if possible, a final selection is madeIf no selection was able to be made the vacancy is announced in a second step forexternals and the same process is performed with the applications of the externals,which exceeds the procedure for the internals just in the point that besides thepsychological check-up there as well a medical check-up is wantedAll applicants are informed about their success, the selected person is invited for to signthe contract.The selected person signs the contract.

2.3.4.1.3. Responsible personsCo-ordinator

2.3.4.1.4. RulesIn a 1st level there has to be made an internal announcementIf no person was able to be selected the announcement is to be repeated externallyFor externals a medical check-up with the doctor of the INATEL is to be processesFor both, externals and internals, a psychological check up with the psychologist of theINATEL is to be processed.

2.3.4.1.5. ReportsReport of termination of the process with respective results to the HR department of theINATEL by manager

2.3.5. Promotion of personnel

2.3.5.1. Process of promoting personnel

2.3.5.1.1. By promoting personnelIf a person performs well, and there is a vacancy in a higher level of hierarchy, there isthe possibility of promoting this person into this higher structural level. If thispromotion in structure can not be realised, there is the possibility to perform thepromotion within the proper plan of charges and salaries of the INATEL, i.e. anaugmentation of the salary is processed.

2.3.5.1.2. Process-flow: promoting personnelIgnition: Vacancy in a higher level. / Need or desire to promote a person.Action: If there is a vacancy it is easy to promote the person, if there is novacancy and there either will have to be created a new job description go to process2.3.3 “Creation of a new job” or the promotion will have to be processed within theproper plan of charges and salaries of the INATEL.


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2.3.5.1.3. Responsible personCo-ordinator


2.3.5.1.5. ReportsReport of necessity of a new place to the Pro-Director of Graduation by the co-ordinatorReport of termination of the process with respective results to the HR department by themanager

2.3.6. Qualification

Snatching up the picture of the parents growing up their children of chapter 1.4.3“Qualification” again, it seems clear to everybody that the parents in order to helpingtheir children to tie the shoe-laces first have to know by themselves how to tie theseshoe-laces. Besides teaching their children they as well have got other jobs to do thechildren don’t even know, but which are important to allow the children growhealthfully. And if the parents didn’t know how to perform them they would have tolearn them as well. Same with the personnel of the ICs, all they want to teach theincubating companies or they need to perform these incubated companies don’t evenknow, they’ve got to learn first. Qualification it wouldn’t be called with the parents butwell with IC’s personnel.

2.3.6.1. Courses and seminars

There is not very much to mention to this point, just that courses are repetitivequalification actions and seminars are held in a coherent space of time.

2.3.6.1.1. By organising coursesThe first possibility of qualification appearing in our minds might be to send therespective persons on courses. And this is what happens, the co-ordinator knows thepersonnel of his IC (and has the personnel data collected in personnel files [if this iswith INATEL then he’s got to develop his own qualification files]) and thus is able toplan the qualification of his troop strategically. Therefore the IC selects the differentcourses considered as appropriate for the demands of the personnel of the IC andassembles a course programme adapted to the needs of the IC’s personnel. This courseprogramme on the one hand has to be strategic, as there has to be defined an aim that isto be pursued by the qualification actions, on the other hand it as well has to be thatflexible to consider emerging problems. Thus there are two processes to allow this:

2.3.6.1.2. Process-flow 1: strategic qualification planing:Ignition: Entry of the new courses offered by organisations as ANPROTEC andRMI for the next periodsAction: Co-ordinator and manager evaluate the needs of the IC’s personnelCo-ordinator and manager select courses considered as appropriate corresponding theevaluated needsManager manages to get the needed rooms, equipment and short time specialists.


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2.3.6.1.3. Process-flow 2: operational qualification events:Ignition: Sudden occurring need or occasionAction: Manager selects a course or seminar out of the offers corresponding theevaluated the exact needsCo-ordinator and manager discuss a special programme and provide either an externqualification or do the qualification on their own (depending on the grade of thedifficulty)

2.3.6.1.4. Responsible persons:Co-ordinator and manager



2.3.6.2. Fairs

Fairs always are a good source of information, especially market information about thecompetitors. Thus they are of interest not only for our incubating companies but as wellfor the IC’s personnel, as they are to first be able to evaluate the applicants’ estimationof the market and later, if the applicant is an entrepreneur of an incubated company,have to offer help concerning further estimations of the market. And thus as well for theIC’s personnel it is important use this source of information about the market in order toaid the companies.

2.3.6.2.1. By informing about fairs taking place

2.3.6.2.2. Process-flow: informing about fairs taking placeIgnition: Basically during the whole year, but principally at the beginning of theyear (or whenever the calendars with the dates of the fairs are distributed)Action: Manager activates his network(organs as SEBRAE, ANPROTEC, RMIother ICs and so on) and gets the dates of the fairsManager marks the relevant information out of the bunch of data and passes this to thesecretary.Secretary types a clear list and distributes this to the IC’s personnel and other interestedpersons.

2.3.6.2.3. Responsible personProcess responsibility: ManagerList development and distribution: Secretary


2.3.6.2.5. ReportsOne list (as report) to the manager, one to the co-ordinator


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2.3.6.2.6. By enabling the participation on fairs

2.3.6.2.7. Process-flow: informing about fairs taking placeIgnition: The programme of fairs offered is known and interesting fairs arepreselected by the co-ordinator and the managerAction: Manager adds the fair on the application plan for finances for annualprogrammes or spontaneous projects in order to manage the payment of the costsIf the payment of the costs rising by the participation of the fair is solved, managerinforms the IC personnel and organises the necessities as stand and equipment,marketing material, accommodation for the IC-members participating

2.3.6.2.8. Responsible personProcess responsibility: ManagerSelection: Co-ordinator



2.3.6.3. Presentation of talk-guests

Learning emerges out of experiences either made by oneself or out of experiences ofothers. Thus inviting talk-guests out of economy or even sports can augment thequalification by exchange of experiences.

2.3.6.3.1. By inviting talk guests to present a certain topicIf e.g. the topic marketing is perceived as urgent the IC invites on a singular base aperson presenting this topic.

2.3.6.3.2. Process-flow: offering presentations of talkingguests

Ignition: The need of qualification is perceived by the IC-personnelAction: Manager adds the topic on the application plan for finances for annualprogrammes or spontaneous projects in order to manage the payment of the costs, oractivates other finance sources (e.g. local industry, entrance-fees)If the payment of the costs rising by the presentation is solved, manager organises thenecessities as room and equipment, define the target group for the presentation (as wellstudents or citizens might participate and pay for the costs) and initiate theannouncement process





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2.3.6.4. Technical missions

A technical mission, otherwise as the name suggests, doesn’t necessarily deal withtechnical problems a group of messengers has to solve. A technical mission more oftensends messengers in order to learn from others. In the case of the IC mostly in businessconcerns.

2.3.6.4.1. By visiting other sitesThe distinguishing point is that we go to see.

2.3.6.4.2. Process-flow: initiating technical missionsIgnition: The need of qualification is perceived by the IC-personnel or anopportunity for a visit arouseAction: Manager adds the topic on the application plan for finances for annualprogrammes or spontaneous projects in order to manage the payment of the costs, oractivates other finance sources (e.g. local industry, payment by the ICCs, as costs forthese technical missions are low, in general the bus-hire)If the payment of the costs rising by the presentation is solved, manager organises thenecessities as a bus





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2.4. Procurement of Information

The information considered here is general information in order to improve theperformance of the incubation-centre, not the one already mentioned e.g. in order togain new sources of finances. Here we refer more on information related to activitiesthat not belong to qualification like a course in marketing but are of use for the IC ase.g. visits at other IC’s premises or national/international meetings with other ICs.These action are not to be ranged into qualification actions, but brought usefulinformation and valuable relations for our IC, and networks were able to be tied.

2.4.1. Data out of Meetings

The disadvantage of this type of data is that it doesn’t come up exactly in the mannerwe’d need it. Thus, in order to gain information out of this data, a touch up to ourdemands is necessary.On the other hand this type of data contains a lot of thoughts that we in our enclosure ofthe IC in SR never thought before and might give new impulses in other, until nowuntouched, areas.

2.4.1.1. Process of extracting useful information out ofpassively gained external data

What we might consider here is a process in order to yield more information out of datagained at activities as these a.m. There might be the possibility to catch informationmore consciously and after the activity to rework it with the aim to gain a reportcontaining new impulses. This might help as inspiration for the next planing.

2.4.1.1.1. By rework of external dataThis process could be explained by the term “activation of passively gained data”

2.4.1.1.2. Process-flow: reworking external dataIgnition: Presence in any meetingAction: Note down all stimulation you receive in the meetingAfter the meeting make an appointment with all the persons participating (if there weremore than one)Discuss their and your stimulating topics with themPrint a reportMake an appointment with the personnel of the IC and communicate the report

2.4.1.1.3. Responsible personsEverybody

2.4.1.1.4. RulesReports created are to be considered at the next planing session

2.4.1.1.5. ReportsReport of meeting as base for the next planning session


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2.4.1.2. Process of actively gaining information inexternal sources

Further every research not pursuing certain but general aims might be considered there.As e.g. procuring general information in the internet or reading magazines concerningour topics.

2.4.1.2.1. By actively pursuing an aimThis process then would be explained by “actively gaining information out of a pool ofdata”

2.4.1.2.2. Process-flow: pursuing an aimIgnition: Low work load or fixed date within every month / two months, to beconsideredAction: Enter mail/read magazine /consult partners as RMI and ANPROTEC andcheck what’s newDiscuss new information with the co-ordinatorDecide to which of them to consider further

2.4.1.2.3. Responsible personsProcess responsibility: managerResponsibility for the selection: co-ordinator


2.4.1.2.5. ReportsEvery stimulation that seems to be worth to be considered further has to be collectedand be considered at the next planing-session

2.4.2. Participation in the “Incubanet”

This item is considered very important and as there is not very much competitionbetween the ICs, mainly because of the long distances between them and because of thedifferent market segments of innovative incubation they want to serve, there are notmany obstacles to be disposed, on the contrary there exists a broad readiness if not evendesire to perform benchmarking. The only action that has to be taken is to maintain sucha network of interrelation by the proper participation.

2.4.2.1. Process of maintaining by participating in theIncubanet

2.4.2.1.1. By participating in the IncubanetThe first thing to be created is a kind of infrastructure that is able to be used in order topromote this data exchange and which will be realised soon in the Incubanet, so that theresponsibility of ICs like ours is just to enable and to maintain the function by ourparticipation.


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2.4.2.1.2. Participation in the IncubanetIgnition: Only ignition is the need perceived nowAction: Participation by supply of questions and answers





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3. THE FRAME-TASKS

Surrounding the whole building of the processes of the incubation-centre there will haveto be an instance to control its performance. If necessary the following diagram:

In these frame-tasks we will find these tasks that are neither linked to the properincubation process nor to the auxiliary processes supporting the work of the IC on theICCs. These are more or less like “tasks behind the camera”, not seen, but important forthe overall-performance.

The frame-tasks

The auxiliary-tasks

The core-task


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3.1. Administration

As a.m. this area contains only tasks not directly concerned with the incubation processor the support of the IC’s personnel. In general they are considered as a burden, as thereis no direct influence on the incubation process visible, but as we see on e.g. theprocesses observing the payment of the ICCs they are very important in concerns ofkeep order in the IC.

3.1.1. Observing the payment of the companies’contributions to the IC

As mentioned in the chapter about the finances of the IC, a part of the finances is paidby the companies themselves. That this is going the right ways has to be observed bysomebody.

3.1.1.1. Process of observing the payment of thecompanies’ contribution

As the companies pay directly to the INATEL the only job of the IC is to control if thepayment was processed or not.

3.1.1.1.1. By observing the payment of the companiesIn order to observe the payment of the ICCs the IC receives a report of payment fromthe INATEL, which will be collected by the receptionist who informs the manager onlyif there appear irregularities in the payments.

3.1.1.1.2. Process-flow: observing the payment of thecompanies

Ignition: INATEL sends report of payment to the ICAction: Receptionist verifies paymentIf company paid, all rightIf not, receptionist informs managerManager animates the entrepreneurs to payIf they pay, all rightIf entrepreneur doesn’t pay but this for a period of three months manager informs co-ordinatorCo-ordinator convokes a meeting with manager and entrepreneurIf there is a solution entrepreneur stays in the ICIf there is no solution entrepreneur has to leave the IC

3.1.1.1.3. Responsible personsProcess responsibility: ReceptionistResponsibility for decision: co-ordinator



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3.1.1.1.5. ReportsInformal, oral report of the receptionist to the manager, if there are irregularitiesInformal, oral report of the manager to the co-ordinator, if there are irregularities

3.1.2. Proceedings in correlation to the companies’contracts

The IC, as it belongs to the INATEL, often has to obey processes and rules of itsumbrella organisation. This often contains reporting to other departments of theINATEL, as we can see in the following process.

3.1.2.1. Process related to the companies’ contract

3.1.2.1.1. By passing the way through the ICIf a new entrepreneur signs his contract with the IC the contract passes its way throughINATEL.

3.1.2.1.2. Process-flow: passing through the ICIgnition: New entrepreneur signs contractAction: Manager brings contract to the president of the FINATELPresident of the FINATEL signs the contractManager takes 2 photocopiesManager sends the receptionist to bring the original to the Finance Department stayswith one copy he is filing in the folders the incubation-centre and files the other copy inthe post-box of the of the entrepreneur

3.1.2.1.3. Responsible personsProcess responsibility: ManagerSigning contract: President of FINATELDistribution of original and copies: Receptionist

3.1.2.1.4. Rules• There shall be added a clause that allows inspection of the books of the

entrepreneurs and obliges them to bring a bimonthly report• Signing the contract, the entrepreneur declares his agreement to the following

paper(s): “Contrato bilateral de Uso da Incubadora de Empresas e Projetos doINATEL” (Bilateral contract of the utilisation of the IC)

3.1.2.1.5. ReportsInformal, oral report to the co-ordinator


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3.1.3. Comparing the computer print of dailytelephone and fax calls to the list of the telephone-exchange

There are two lists concerning the telephone-costs firstly the computer-list of the properIC telling who of the entrepreneurs called when to which number. The second list issent by the telephone-exchange of the INATEL to the IC and contains the costs of eachcall made to the respective number.

3.1.3.1. Process of comparing telephone and fax lists

3.1.3.1.1. By comparing telephone listsNow it is the job of the office-boy to link the costs through the numbers and times to thenames of the entrepreneurs.

3.1.3.1.2. Process-flow: comparing telephone listsIgnition: List of the telephone-exchange arrivesAction: Office-boy opens the computer list of the telephone system of the ICOffice-boy compares the calls and supplements the corresponding company nameOffice-boy sends the list back to the telephone-exchange

3.1.3.1.3. Responsible personsOffice-boy


3.1.3.1.5. ReportsTelling the manager that he finished the task

3.1.4. Observation of the monthly payment of thecompanies’ telephone and fax bills

As a.m. the telephone-exchange sends a monthly bill to the entrepreneurs. Exactly as themonthly payment for the IC this payment has to be observed which is more a“somebody-has-to-do-it task” as a necessity out of bad experiences of the past.

3.1.4.1. Process of observation of the payment of thetelephone and fax bills

As the companies pay directly to the INATEL the only job of the IC is to control if thepayment was processed or not.


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3.1.4.1.1. By observing the payment of the companiesIn order to observe the payment of the ICCs the IC receives a report of payment fromthe INATEL, which will be collected by the receptionist who informs the manager onlyif there appear irregularities in the payments.

3.1.4.1.2. Process-flow: observing the payment of thecompanies

Ignition: Reception of the telephone-bill and the list of the telephone-exchangeAction: Receptionist compares both for congruenceReceptionist sets up the bill for the entrepreneurs and sends it to themReceptionist waits until the beginning of the next monthReceptionist checks if companies paidIf company paid, all rightIf not, receptionist informs managerManager animates the entrepreneurs to payIf entrepreneur doesn’t pay for a period of three months manager informs co-ordinatorCo-ordinator convokes a meeting with manager and entrepreneurIf there is a solution entrepreneur stays in the ICIf there is no solution entrepreneur has to leave the IC

3.1.4.1.3. Responsible personsProcess responsibility: ReceptionistResponsibility for decision: co-ordinator


3.1.4.1.5. ReportsInformal, oral report of the receptionist to the manager, if there are irregularitiesInformal, oral report of the manager to the co-ordinator, if there are irregularities

3.1.5. Updating and changing the contents of thehomepage of the IC

The homepage is an important mean of promotion for the IC thus it has to be keptattractive in order to convince potential clients for the IC to apply for a vacancy.

3.1.5.1. Process of updating the homepage

This process will involve not only the manager, developing the view of the page, but aswell personnel of the IT department introducing the page in the net.


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3.1.5.1.1. By updating the homepageIf there it is decided that there are to occur changes of the homepage the manager has toinvolve the responsible persons to develop the page (if he doesn’t do it by himself) andafterwards the IT department to implement them.

3.1.5.1.2. Process-flow: changing the homepageIgnition: Changes on the page are decidedAction: Manager performs the changes or makes somebody to perform themChanges are performedManager presents them to the co-ordinatorIf they are o.k. manager asks IT to implement themIf not, process begins from the startIT implements the page

3.1.5.1.3. Responsible personsProcess responsibility: managerResponsibility for decision: co-ordinator


3.1.5.1.5. ReportsNone, all levels involved

3.1.5.2. Process of contracting short time specialists andpresentation guests

3.1.5.2.1. By contracting a short time specialist or apresentation guest

Courses, seminars and presentations of talk guests are mostly not performed by themembers of the IC, but by person s invited or contracted therefore

3.1.5.2.2. Process-flow:Ignition: A course, seminar or presentation is felt as necessary and the question ofpayment is solved.Action: After feeling the need of a qualification action but before the solution ofpayment the question who is going to perform the action is determined, so that therenow just has to be made the contract with the speaker and the question of room andequipment has to be solved, which is to be done by the manager

3.1.5.2.3. Responsible personsManager




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3.1.6. Official journeys

We have met official journeys several times in this OPHB, be it in order to participate atmeetings with the linked organisations (SEBRAE, ANPROTEC or the RMI),qualification programmes or fairs. This process explains how these journeys are plannedand remunerated.

3.1.6.1. Process of planing the trips

Logically the first process in the file, as firstly there has to be planned a trip and then itis paid and if necessary remunerated to persons paying IC’s expenses out of their ownpocket.

3.1.6.1.1. By determining, booking and financing the tripIf there are events as the trip to the premises or to meetings with other ICs someone hasto plan them.

3.1.6.1.2. Process-flow: determining, booking and financingthe trip

Ignition: Desire about participation at an event is statedAction: The following four actions are running parallel or in altering sequence:Manager verifies the number of interested persons and supplies the necessary data to thesecretary of the NEMP.Secretary of the NEMP checks which kind of components form the trip (as e.g.transport by bus, train ore aeroplane; accommodation; alimentation) and the pricesOut of the variety of offers she selects the best concerning the relation between priceand offered serviceManager selects the appropriate offerSecretary of the NEMP books the selected offersManager tries to get sponsorship for this event following the corresponding process inchapter 2.1.3 “Application for finances for annual programmes and spontaneousprojects”

3.1.6.1.3. Responsible personsProcess responsibility: ManagerPerformance of getting offers: Secretary of the NEMP



3.1.6.2. Compensation for the use of private cars

Sometimes parties or persons decide to apply their own cars as the trips thus get cheaperthan hiring a bus going by train or plane. Then these persons receive remunerationcorresponding to the number of kilometres driven.


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3.1.6.2.1. By remunerating expensesThis process will be about how to enter receipts in order to get back the expenses paidby a private person for the IC.


Ignition: Person decided to drive by the proper carAction: Secretary of the NEMP asks for authorisation of this tripAuthorisation is given, person is travelling by the own carAfter the trip the person receives the remuneration corresponding to the kilometresdriven by the Financial Department of the INATEL who charge the cost centre of the IC

3.1.6.2.3. Responsible personsProcess responsibility: Secretary of the NEMP

3.1.6.2.4. RulesRemuneration rules of the INATEL


3.1.6.3. Entertainment expenses

Similar in the case of receipts collected for alimentation, accommodation, transport andother entertainment expenses.

3.1.6.3.1. By remunerating expensesThis process will be about how to enter receipts in order to prove the payment of theadvanced money to the Financial Department of the INATEL within 24 hours.


Ignition: Person needs to travelAction: Secretary of the NEMP asks for authorisation of this tripAuthorisation is given, person is travelling and collecting the corresponding receiptsAfter the trip the person displays all the collected receipts to the Financial Departmentof the INATEL who either ask for the change of the exceeding money or pays thedifference to the actually spent money and charge the cost centre of the IC

3.1.6.3.3. Responsible personsProcess responsibility: Secretary of the NEMP

3.1.6.3.4. RulesRemuneration rules of the INATEL



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3.2. Controlling of the performance of the incubation-centre

Forming part of the INATEL the accounting is not in the duty of the IC, but of adepartment of the INATEL. Thus controlling of the IC has to be performed concerningthe IC’s product and performance. Which means that the IC hasn’t got to just observeits product, the service of incubation, which is processed in the core-task as the processof observation and evaluation of the ICCs, but as well its own performance. The aim isthe same as when animating these incubating companies to process performancecontrol, i.e. evaluating the present performance, discovering weak performance andimproving the future performance.If the IC wants to process this controlling it needs to enter the same way as the ICCs.Firstly it has to define the aims of its processes following the own vision and objectives.This will define the areas displaying the success of the IC as there are:• Incubation success• Costs

Thereof the incubation-centre can develop its indicators as seen in the observation andevaluation process of the core-task which are e.g.:1. Number of companies successfully dismisses /year2. Number of ICCs surviving the first 5 years3. Costs of incubation = min4. Resources able to be yielded

A second thought has to be spent on the question “How to structure the process ofcontrolling the performance of the IC?” A possible solution we see in the followingparagraph:

3.2.1.1. Process of controlling the incubation-centre

In comparison to the ICCs process of performance control, which is considered asoperational as it comprises the processes of acquirement, purchasing, production,delivery, adding up to more or less 1-2 months, the process of incubation is morestrategically, as we can see in the fact that the IC determined the presence of an ICC inthe IC between 1-2 years. Thus the controlling of the performance is settled in an annualcycle.

3.2.1.1.1. By controlling the ICAs in the process of the observation of the ICCs we are not able to control the wholeprocess, but just the fulfilment of targets, informing about the success of the IC’sperformance, which makes the process look like this:

3.2.1.1.2. Process-flow: controlling the ICIgnition: End of the yearAction: Data specified as indicating the success of the IC are collected andevaluated


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The evaluated data is used in order to determine the degree of success and in order toidentify areas where improvement is possibleAims are set in order to improve the processThe way how improvements can be made are defined and added into the plan of thenext year

3.2.1.1.3. Responsible personCo-ordinator


3.2.1.1.5. Reports


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4. APPENDIX:4.1. The organisational chart of FINATEL

FINATEL= Fundação do Instituto Nacional de Telecomunicações(Foundation of the National Institute of Telecommunication)

President: Professor Adonias Costa da Silveira

INATEL= Instituto Nacional de Telecomunicações (National Institute of Telecommunication)

Pro-Directory of Administration and ExtensionPro-Director: Professor Marcelo de Oliveira Marques

Pro-Directory of DevelopmentPro-Director: Professor Elias Kallás

Pro-Directory of Post-Graduation and ResearchPro-Director: Professor José Marcos Câmara Brito

Pro-Directory of GraduationPro-Director: Professor Wander Wilson Chaves

NEMPNúcleo de Empreendedorismo (Nucleus of Entrepreneurship)

ICIncubadora (Incubation-Centre)

Director: Professor Pedro Sergio MontiVice-Director: Professor José Marcos Câmara Brito

Co-ordinator: Professor Mário Augustode Souza Nunes

Manager: RogerioAbranches da Silva

Office Boy: Vagner HildebrandoFerreira

Recepcionist: C. FernandaRodrigues

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