Entrepreneurship


12 Key Actions Leading to Successful Corporate Entrepreneurship

Essential to an organisation’s survival is the cultivation of an environment which is conducive to entrepreneurial activity. As an organisation matures and reaches a level where growth flattens out or begins to decline, an organisation needs to adopt the qualities it once possessed when first created. The need to re-invent itself and re-establish its competitive advantage requires the organisation to become more entrepreneurial. The post-GFC environment has been identified as one which will require strong entrepreneurial actions that will need to be innovative.

There are inherent problems associated with changing the internal mechanisms of the organisation to promote entrepreneurial behaviour. Most organisations are unsuccessful at implementing such a change because it often means going against the grain of what an organisation has been doing during its incremental growth period. The challenge is large in magnitude, yet crucial if the organisation is to adapt to a changing hostile environment. Innovation is inextricably linked to an organisation’s ability to adapt. Turnaround cases illustrate the need for entrepreneurs in order to survive the various changes they implement, giving the organisation its competitive edge once more. Research undertaken by StreetSmart Group has identified twelve key actions that lead to effective entrepreneurial outcomes:

1. The effective and innovative management of finances, products, and markets is central to effective adaptation

2. The development of new products and new innovative marketing strategies

3. A change in leadership style and/or leader is necessary for revolutionary change

4. A change in organisational culture focusing on values, commitment, trust, professionalism and innovation is essential for successful revolutionary change

5. Employee empowerment and reward system need to be aligned and developed around company performance

6. Technology and information play a key role in this form of adaptation

7. Choice of strategy needs to be closely aligned to the new environment facing the organisation

8. Speed of change and selling the change to employees is important to achieving effective revolutionary change

9. Education and skill level of employees needs to be raised to meet the needs of this type of change

10. Regular communication about the changing environment and sharing of ideas is required for effective long-term revolutionary change

11. A reduction in bureaucracy and an innovative approach to administration is required

12. Effective revolutionary change programs re-establish their competitive advantage

The case studies in our research illustrate the need to innovate to adapt. A tenable conclusion may be that an entrepreneurial environment which fosters entrepreneurial activity is equated to an organisation’s adaptation ability.

The full research report is avialble at my website: www.streetsmartcc.com

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