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