How Great Firms Prosper Through Entrepreneurial Thinking

Develop an Entrepreneurial Mindset

Why are some businesses more vulnerable to disruptive change than others?

Should big companies engage in entrepreneurship?

How do you stay ahead of the competition?

In Achieving Longevity: How Great Firms Prosper Through Entrepreneurial Thinking, Jim Dewald provides advice on how to create a culture of entrepreneurial thinking. He offers a method to combine the strength of a strong, established business with the innovation of a startup.

Jim is the Dean of the Haskayne School of Business at the University of Calgary, a former CEO and entrepreneur.

 

“To improve is to change, so to be perfect is to have changed often.” –Winston Churchill

 

Prepare Yourself for Real Disruptive Change

What makes businesses vulnerable to disruptive change?

There are 2 main messages in my book.

First, that while we think the world is changing rapidly, in fact, we continue to rely on a platform that arose from the invention of 3 general purpose technologies in the 1870’s: the internal combustion engine, the light bulb, and the telephone. Even with the computer and the Internet, we have spent decades boxing in this amazing new technology to fit our paradigm need for a faster, smaller, cheaper phone. So, while we think we are in the midst of rapid change, the western world is in fact obsessed with ensuring we stick with the old world and reward refinements of tired mature ways of doing things. When real change comes, will business leaders be prepared? I don’t think so.Dewald_AchievingLongevity

One of the reasons why we won’t respond well when real change comes is that while ideas are abundant, small start-up ventures lack the resources – people, money, physical assets — to launch these ideas. They also lack the credibility, networks, access to customers, suppliers, government officials, etc. This limits their ability to move these ideas forward, no matter how great they may be. At the same time, existing companies are flush with people, money, networks, customers, and, most important, credibility and brand value. But what they lack is an entrepreneurial mindset. To move forward, companies need to resist the rhetoric of finding and sticking to a narrow form of sustainable competitive advantage, and instead adopt a model of strategic entrepreneurship that promotes transformational growth and longevity.

The fundamental impact of disruptive change is that our organizations are not built to manage change very well. Through principles such as sustainable competitive advantage, we tend to use fixed mindsets that build a sort of impenetrable armor around the firm’s processes and procedures, instead of being flexible and adaptable. When disruptive technologies or business models present an alternative, firms resist. Indeed, even customers often resist, as we remain stuck in our paradigms formed as noted above. However, in time, customers adapt because they do not have the level of sunk investment in the old ways that companies often do. Time and again, rigid non-entrepreneurial firms fall by the wayside.

There are many very extreme examples of this phenomenon. Think of Kodak, which is a firm that actually pioneered digital photography, but in the end was unable to adapt to this powerful disruptive technology.

 

“Progress is a nice word we like to use. But change is its motivator. And change has its enemies.” –Robert Kennedy

 

Embrace a Spirit of Entrepreneurship

How can large organizations embrace a spirit of entrepreneurship?

I emphasize the importance of adopting three points:

  1. Recognize that opportunities are developed at all levels of the organization.
  2. Build a culture that embraces and supports entrepreneurship.
  3. Consciously develop support for entrepreneurial initiatives through effectual processes or bricolage.

The key is leadership, not only in words, but in action. It is imperative that the CEO endorse an entrepreneurial culture by example – championing new ideas. In fact, a failure or two is good because it demonstrates that even the CEO recognizes that not every entrepreneurial idea is destined for success, and it is important to manage your investment and ensure that no one new venture will take down the ship.

 

“Culture eats strategy for breakfast.” –Peter Drucker

 

The Key Elements of a Good Corporate Culture

What are the elements of a good corporate culture?

There are many theories on this question, and I included quite a few in my book. In the end, the key elements are:

  1. Provide open opportunities for opportunity development – these include group time (because we know that mixing people with diverse expertise and background can lead to innovative solutions), plus unstructured open thinking time (such as 3M’s famous “tinkering” time).
  2. Adopt a learning culture – growth mindsets are essential, pursuing what could be as opposed to why this won’t work.
  3. Accept failure, and the importance of learning from failure.
  4. Adopt bricolage (known outcomes, with unknown ways of getting there), or effectuation (building on invention, experiment, and science) as frameworks for pursuing each entrepreneurial initiative (purposefully).

 

“The only sustainable competitive advantage is an organization’s ability to learn faster than the competition.” –Peter Senge

 

Encourage Creativity at all Levels

How do leaders encourage creativity at all levels of the organization?

The first thing I would say is that leaders must recognize that organizations need time to change. This is not an overnight process and will require considerable and repetitive actions and wins to change. And failure is a key component – an organization can move far closer to being creative and adopting entrepreneurial thinking by showing that a person with a great idea that failed in implementation is celebrated as thinking outside the box, rather than penalized for failing.

Researchers have studied the importance of story-telling in organizations, and how a lasting culture can be built around well-known, maybe even legendary, stories that come from the history of the organization. The dimensions of story-telling I describe in my book include equality (versus inequality), security (versus insecurity), and control (versus lack of control). Through story-telling of actual events that happened in the organization’s history, employees are able to gauge whether the organization will endorse or shun creativity at all levels.

 

“Successful innovators are..not risk-focused; they are opportunity focused.” –Peter Drucker

 

Middle management is often ignored in the leadership literature. What role do they have in this type of change management?

How to Avoid the Most Common Branding Mistakes

6 Rules of Brand Revitalization

 

How do you keep a brand relevant?

 

If you are looking to develop a strong global brand, you will find two names consistently mentioned as “go-to” experts: Larry Light and Joan Kiddon. They have just released a second edition of their book on branding, Six Rules of Brand Revitalization.

If you need to revitalize a brand, or if you are looking to avoid the pitfalls others have made, this book is a blueprint to follow for building a brand.

 

“Without trust, there can be no brand loyalty.” -Light / Kiddon

 

I recently spoke with the authors about their new book and the rules of branding.

 

6 Rules of Brand Revitalization

 

1. Refocus the organization.

Where do most corporate leaders get it wrong?

They tend to believe that “refocus” can happen through tools and templates and HR seminars. Refocus is more than filling in the blanks and talking the talk. When there is a conflict between strategy and culture, culture wins. A commitment to change requires refocusing of the cultural mindset that emanates from the top down. Merely embarking on a training program to encourage a focus on new tools, templates, and techniques can distract from the need to accomplish both the behavioral and attitudinal modifications that foster culture change.

 

“Refocusing an organization around common goals is the first step for brand revitalization.” -Light / Kiddon

 

6 Rules of Brand Revitalization

Rule 1: Refocus the organization

Rule 2: Restore brand relevance

Rule 3: Reinvent the brand experience

Rule 4: Reinforce a results culture

Rule 5: Rebuild brand trust

Rule 6: Realize global alignment

 

What tip would you provide to a leadership team in the midst of this refocus?

Leaders are different from commanders. Commanders manage by telling people what to do. They create acceptors. Leaders create believers. Acceptors go through the motions complying with the new processes and behaviors. Believers have true commitment that this refocus is a better path to a successful future. Acceptors are not the same as adherents. The leader must be the one to set the tone and drive the change for all to see and emulate. Leaders must demonstrate commitment if they expect people to become believers in the new world.

 

“The leader must set the tone and drive change.” -Light / Kiddon

 

  

2. Restore brand relevance.

What are the best ways to stay on top of changing customer expectations?

Stay up-to-date with all available information. Read a variety of sources, not just in your business’ field but also across many disciplines. Include regular market research reports. But also include what is happening in the world around us. Be observant. Be informed. Be open to new ideas.

In this world of access to “big data’” there is now a focus on data analytics. Analysis can tell us about what is happening today. Analysis is about the decomposition of data. But real insight does not come from analysis. It comes from creative synthesis. Analysis is about taking data apart. Synthesis is about putting together disparate sources of information in original ways. Synthesis is about detecting patterns that others fail to see. Keeping a brand relevant will involve both analysis and synthesis. Make sure that the organization is open and conducive to creative synthesis.

 

3. Reinvent the brand experience.

How do you define a brand experience?

The total brand experience includes consideration, shopping, purchase, use, service, online, offline, brand communications, handling of customer complaints, and so on. Every touch point with the customer is a part of the total brand experience. It includes every aspect of the brand promise: functional benefits, emotional and social rewards, solutions to problems, and so forth.

 

“Every touch point with the customer is a part of the total brand experience.” -Light / Kiddon

 

How fast can a brand innovate and reinvent?

Tools to Become an Authentic Leader

The Power of Authenticity

Be yourself. Be true to you. Don’t try to be someone else. Don’t put on false airs. Be authentic.

 

“The essence of authenticity is being yourself fully.” –Karissa Thacker

 

Most leaders hear this advice but don’t know what it means, what to do about it, or how it impacts everyday life in the office.

Becoming an authentic leader is more than a lofty goal. It’s an essential part of your effectiveness. My own experience is that it’s often authenticity that sets the great leaders apart. We don’t always know why we are inspired by certain individuals, but I think it is this characteristic that appeals to us at a deep level.

To learn more about this subject, I read Karissa Thacker’s terrific new book, The Art of Authenticity: Tools to Become an Authentic Leader and Your Best Self. Karissa is the founder and president of Strategic Performance Solutions. She is a management psychologist, focusing on human performance and satisfaction at work. I recently asked her to share some thoughts about her work on authenticity.

 

“There is no one alive who is more Youer than You.” –Dr. Seuss

 

What I particularly like about her new book is that, as the subtitle of the book suggests, she provides tools to help with the goal.

 

Lead with Authenticity

How would you define authenticity in leadership?

9781119153429.pdfBoth authenticity and leadership are important in defining authentic leadership. Leadership is about getting things done that are both difficult and important in the context of a specific organization or more broadly any human community. Authenticity adds another layer which is being true to your own nature AS you are getting things done that are difficult and important.

What’s the relationship between authenticity and leadership?
Our typical way of thinking about authenticity is to just be yourself, and it will all turn out better. Of course, be yourself. It sounds so simple. The first problem with that is you are not that simple. We humans are just not that simple. There is no one solid self like a concrete block. Our hardwired adaptive traits as humans mean that we behave differently under different situations and circumstances. Leadership requires this adaptability. But you have to find ways to communicate who you are as you are leading effectively. More importantly, you have to figure out ways to stay in touch with what is important to you as you are in the thick of getting things done. Paying attention to the inner game and outer game at the same time is a lot easier said than done. Said another way, it is easier to just be authentic or just figure out how to get things done that are difficult and important. But the daily question is how do we do both at the same time?

 

“Authenticity is knowing, and acting on, what is true and real inside yourself…” –Robert Terry

 

Why do you think there is currently so much interest in leadership authenticity?
Trust in big institutions like our government here in the US is low. I also think that the modern era poses some challenges with upping the ante on aspects of authenticity like transparency. Like it or not, we are in an age of transparency. The boundaries between private life and work or with private life in general are not what they used to be.

Leadership is never a value-neutral concept. To say someone is a leader means we have high expectations. A lot of this interest comes down to people wanting our leaders to step up and make things happen that are good for the whole. Any robust discussion of authenticity takes you fully into the thicket of human moral psychology as authenticity is so not a value-neutral construct.

 

“Fear is not your friend if you want a culture of authenticity.” –Karissa Thacker

 

Jim Carrey’s movie Liar Liar immediately came to mind when I read your Truth Serum Question. Would you share this exercise with us?

Get The Best from Yourself And Others

Success Starts With Your Thoughts

My friend Lee Colan is the author of 13 books and the co-founder of The L Group. Recently, I had the opportunity to sit down and talk with him about leadership and attitude and consistent execution (or what Lee calls adherence).

Lee reminds us that so much of our success starts with our thoughts. Thoughts influence our beliefs, which influence our words. Our words reflect our commitments, which influence our choice of actions. Ultimately, our actions influence the results we achieve.

getting-the-best-from-yourself-and-others

But it all starts with the thoughts in our head.

As Lee says it, “Your thoughts today lead to your results tomorrow.”

In this brief interview, Lee shares more about this model and why consistent execution is so important.

Below are a few stand-out quotes from Lee:

 

“Your thoughts today lead to your results tomorrow.” –Lee Colan

 

“Winning depends less on a brilliant plan than on consistent actions.” –Lee Colan

 

“Those who underestimate the intelligence of others tend to overestimate their own.” –Lee Colan

 

“You don’t have to be great to get started, but you do have to get started to be great.” –Lee Colan

 

“The most important conversation you will ever have is the one with yourself.” –Lee Colan

How to Transform Your Culture To Stay Ahead

How to Transform Your Culture

In all of the organizations I have had the privilege to lead, I am always thinking and focusing on culture. Culture, to me, is important both at home and at work. It is the engine that either limits potential or sustains success.

 

“Transforming culture is the real leadership work.” –John Mattone

 

Cultural Transformations BookcoverToday it seems every forward-thinking company is focused on cultural reinvention. John Mattone and Nick Vaidya’s new book, Cultural Transformations: Lessons of Leadership and Corporate Reinvention was one that I read with great interest. Not only do the authors outline the imperative to continually transform corporate culture to stay ahead of the competition, but they also interview numerous corporate leaders to provide examples to lead the way.

John Mattone has been featured here before. He’s a leadership guru, a top-ranked CEO coach, and runs a top-ranked leadership blog. Whenever he contacts me, I know that I will learn something. I recently had the opportunity to talk with him about his latest work.

 

“The culture you create and reinforce will determine your success.” –John Mattone

 

Culture Change is Constant

When you talk about cultural transformation, what are you referring to?  Under what circumstances might a company look to transform its culture?

Always. The need to transform culture and ensure that you always have the culture in place to drive sustained operating success is a never-ending pursuit and business priority. A healthy, vibrant and mature culture will drive success and keep any organization “ahead of the curve.” So many factors are creating “disruption” in all sectors—digitization, globalization, and the need to operate at two-speeds (fast in emerging economies, slower in mature economies). Traditional differentiators like size, scope, legacy and market position are no longer differentiators. To stay ahead of the curve, CEO’s and senior teams must always be re-thinking, re-shaping, and reinventing their own purpose as well as the purpose of the enterprise. It is no longer about the company you want to create; it is now much more about the company that you must create.

Copyright John Mattone and Nick Vaidya; Used by Permission Copyright John Mattone and Nick Vaidya; Used by Permission

 

 

“The need to transform culture is a never-ending pursuit and business priority.” –John Mattone

 

 

Defining the Right Culture for You

How do you define what is the right culture for your organization?

You have to be passionate and diligent about measuring everything. This is the 6th step of my Cultural Transformation Model. Measuring operating metrics is part of it. Measuring the effectiveness of your talent systems, your engagement levels, and getting views from your customers and suppliers, and actually measuring what’s working and not working in your culture are all critical. Ultimately, it’s about leveraging your strengths and gifts—the positive legacy aspects of your business (and culture) and addressing the “gaps” and having a laser-focus discipline is what’s required. Sometimes, the C-level team determines based on this “world of feedback” that the company must become more innovative. This will then lead to strategies on how to recruit and select talent who possess the capability to be agile, nimble and innovative. Prescription before diagnosis is malpractice in medicine. However, I would say the same principle applies in the world of corporate reinvention and renewal.

Copyright John Mattone and Nick Vaidya; Used by Permission Copyright John Mattone and Nick Vaidya; Used by Permission

 

“A healthy, vibrant and mature culture will drive success.” –John Mattone

 

The Role of the Leader