Creating Value and Growth through Corporate Entre preneurship

Nova Southeastern University Creating Value and Growth through Corporate Entre preneurship H. Wayne Huizenga School of Business and Entrepreneurship Hudson Institute of Entrepreneurship and Executive Education 1 www.huizenga.nova.edu/execed

Creating Value and Growth through Corporate Entrepreneurship Page 2 CREATING VALUE and GROWTH through CORPORATE ENTREPRENEURSHIP Program Overview Create Global Corporate Growth In recent years companies have focused on cutting costs to improve profitability. Now they must increase revenues to achieve the same results. Is it possible for companies to drive revenue growth using entrepreneurial techniques? As a senior manager, can you learn the basic skills, behaviors, and entrepreneurial concepts that are often seen in successful entrepreneurs? Can you nurture these skills in your organization and its employees? At Nova Southeastern University, where we have one of the nation s top-rated MBA entrepreneurship programs, we believe you can. We have been teaching business leaders to improve their entrepreneurial skills-to create value through innovation, to think conceptually, to see change as an opportunity, and to identify and exploit that opportunity. Drawing on our world-renowned entrepreneurial curriculum, we have developed The NSU/SBE Program on Corporate Entrepreneurship that will teach you to apply proven principles of entrepreneurship within already existing businesses so you can spur growth, identify new business opportunities, and pursue them effectively. Led by senior faculty members who are not only experienced in teaching entrepreneurial skills and strategies but in corporate entrepreneurship itself; this special management curriculum helps you: Identify and capture business opportunities that others have not seen Build and manage fast-moving entrepreneurial teams Use entrepreneurial business strategies to shape new ventures and manage risk/return Write business plans to attract internal and external resources and manage the successful development and implementation of new business opportunities Who will benefit from this program? Senior managers who are in a position to influence both day-to-day and strategic management of the organization, including Presidents; Chief Operating Officers; Board Chairmen and Board Members; Executive Vice- Presidents; Vice Presidents of Operations; Administration; Human Resources, Marketing, Finance, Manufacturing, R&D and Business Development; Directors; and key members of their staff. Develop New Business Opportunities The three distinct components of this unique management curriculum have been designed to highlight the key skills, lessons, tactics, and strategies that will be most helpful to you in creating and leading entrepreneurial ventures. 2

Page 3 Creating Value and Growth through Corporate Entrepreneurship Day One: The Manager as Entrepreneur PROGRAM SCHEDULE What it means to be entrepreneurial and the entrepreneurial process Understanding the difference between a good manager and a good entrepreneur, and between a good idea and a good opportunity Learning to see value that others don t see, and how to change the value proposition to the customer Structuring ventures to attract internal financial support Leading an entrepreneurial organization in a non-entrepreneurial environment Day Two: Identifying Entrepreneurial Opportunities Evaluating and justifying entrepreneurial actions Shaping ideas by shopping them in the organization Using financial analysis to define new opportunities Linking the customer value propositions with your unique organizational capabilities Day Three: Managing the Entrepreneurial Process Relating entrepreneurial ventures to corporate strategy Understanding what internal and external investors look for in a business plan Managing the financial process, and what you need to understand about the difference between standard management and entrepreneurial cash flows Internal and external loss management, exit mechanisms, and what to do when things go wrong Avoiding entrepreneurial Venus fly traps Modifying and restructuring an opportunity based on changes in the environment. DAY ONE The Corporate Manager as Entrepreneur Creating an entrepreneurial mindset in the individual and in the organization Entrepreneurship is a way of thinking and acting that is driven by opportunity and directed at creating new value. For the corporate entrepreneur, there is a constant battle between opposing forces: risk vs. return, uncertainty vs. opportunity, personal risk and return vs. corporate risk and return, and budget focus vs. opportunity focus. As a manager, what are the key principles and processes you need to understand in order to operate effectively as an entrepreneur inside your own organization, or to build an entrepreneurial environment? How do you begin to think like an entrepreneur? What s required in the organization to support entrepreneurial behavior? What do you need to know in order to gain financial support and compete more effectively for corporate resources? 3

Creating Value and Growth through Corporate Entrepreneurship Page 4 On the first day of this program, you ll gain important insights into the manager as entrepreneur, as well as learn about: Entrepreneurial behaviors and mind-sets, and the entrepreneurial process Crafting entrepreneurial strategies Looking at the organization in new and creative ways Using venture capital standards to measure potential opportunities Managing risk propositions Creating greater impact on customer value chains Common organizational barriers and how to overcome them Developing innovative products and services Effectively using other peoples money/time and resources 1. Contemporary Principles of Corporate Entrepreneurship What entrepreneurship is and why it is an important issue in corporations today, given the competitive environment and changing product life cycles. What it means to be an entrepreneur. The basics of entrepreneurial leadership in the corporation. 2. Understanding the Entrepreneurial Process: Laying the Foundation for Corporate Venturing Using case examples, you will learn: What differentiates the entrepreneurial process from more traditional management processes Using market demand, structure, and size to measure opportunity Entrepreneurial team as the key to success Why a mediocre idea in the hands of a great team is more attractive to investors than a great idea in the hands of a mediocre team. 3. Characteristics of Successful Entrepreneurs The common perception of the entrepreneur is an individual who is a cowboy, a high risk taker, one who needs to fail before he or she can succeed. In fact, the research paints quite a different picture. We ll discuss what we ve discovered about how effective entrepreneurs view risk and opportunity, feel about working in teams, and think about planning vs. making shoot-from-the-hip decisions. Other topics include: How your personal traits, background, and education affect your ability to succeed as an entrepreneur What can readily be changed, what you may need to work on harder What s myth, what s real, what s relevant. Distinctions between the internal or corporate entrepreneur and the individual or external entrepreneur, and what one can learn from the other 4. The Manager as Entrepreneur In this segment, you will use a case study to examine corporate entrepreneurship from the perspective of a manager who attempts to revive a failing division that has been written off by the company, by moving from a traditional to an entrepreneurial management approach. What changes had to be implemented in order for the company to give the go-ahead? How did the manager have to alter his personal management style? What was the impact on the organization s employees? How did he hold the bureaucracy at bay? 4

Page 5 Creating Value and Growth through Corporate Entrepreneurship DAY TWO Identifying and Assessing Entrepreneurial Opportunities Generating, shaping, and justifying new corporate ventures The skill that distinguishes successful entrepreneurs is their ability to determine when a great idea is also a great opportunity. How do they do it? What are the keys to capturing opportunities as viable business ventures and to recognizing and assessing the markets, trends, unsatisfied or unserved customer needs, and economic value that various opportunities represent? On day two, we will explore the opportunity development process and the full range of factors and information you ll need to consider to generate a sound and credible business plan or proposal. You will learn about ways in which you can transform company or industry value chains and leverage underutilized assets. You will also learn: 1. The Opportunity Development Process How do you begin to generate, shape, and justify initiatives which create new businesses and/or new ways of doing business? In this segment we will detail a process model for getting from a business idea to a functioning business strategy and for putting the strategy into place. You ll learn to distinguish between: Market-driven vs. technology-driven opportunities New business opportunities vs. transforming existing ones Corporate venturing opportunities vs. those encountered by start-ups 2. Identifying Entrepreneurial Opportunities Conceiving new relationships between the organization and the customer by: Aligning product attributes and customer needs Serving existing needs better or creating new needs Using value-based pricing strategies (developing a clear vision of who wants the product or service and how much they re willing to pay) Includes case examples of opportunity identification involving reallocation of revenues and relationships. How to develop and map an entrepreneurial business strategy The skill sets required to take existing resources, distribution chains, brand names, and other historic assets, and actively shape them into entrepreneurial opportunities How to discover and develop customer value propositions and new ways to extend your organization s unique competencies The process of moving from business proposition to financial proposition How to develop multifaceted opportunities, including synergies, cross-unit spillovers, and growth options 3. Creating a Value Proposition Creating new opportunities by developing value chains which capture high returns and create competitive advantage. Understanding value chain concepts and logistics, including: How value chain transformation can create new customer values Making current assets generate more revenue (e.g. distribution networks) Opportunities for using the internet to transform the value chain 5

Creating Value and Growth through Corporate Entrepreneurship Page 6 Covers ways of creating new opportunities by looking at opportunity sets rather than markets and industries. Included are examples of companies that have transferred successful strategies in current businesses to other industries and to new geographies. Case study: How an engineering company adapted an industrial technology to create a new consumer business. 4. Using Financial Analysis to Shape Opportunities In developing any entrepreneurial opportunity, you ve got to be able to make a reasonable case for the financial risks and returns of the venture to acquire the resources necessary to support it. How do you use financial data to analyze the merits of your strategic choices and the risk levels and risk drivers of any entrepreneurial enterprise? What are the financial skill sets required to make the necessary decisions? This session will help you build your financial literacy so you can better control risks, as well as understand: The conceptual limits of traditional cash flow analysis when it comes to entrepreneurial opportunities de-fanged approaches to financial analysis and cash flow modeling the importance of time in understanding return potential and risks how to translate a commercial proposition into a financial proposition flexibility and abandonment options (and what you should build into the business plan) risk bearing vs. risk sharing Includes a case study on using financial analysis to shape and justify a venture. DAY THREE Creating and Implementing the New Business Plan Managing the entrepreneurial process What are the keys to managing the internal venturing process? As a senior manager responsible for the ultimate success of the project, where do you begin when it comes to deciding: Where the venture-and the organization-need to go and how fast How to get there, and What to do along the way to reduce uncertainty and to manage risk and change? Creating an entrepreneurial business plan is crucial not only as a way to help you understand and guide the growth of the venture, but also as a means to attract the capital or scarce internal resources necessary to make the venture succeed. On the third day, you will learn about the entrepreneurial business planning process and how to work through the steps required to create the plan. You will also learn how to effectively implement the plan, as well as: What investors (internal or external) look for in an entrepreneurial business plan How to capture and communicate the opportunity using an entrepreneurial business plan model Strategies for managing the financial process- and the difference between management and entrepreneurial approaches to profits and cash flows Creating a fit between the corporate strategy and your venture Assessing and monitoring the health of the project- and what you can do when things start to go wrong. 6

Page 7 Creating Value and Growth through Corporate Entrepreneurship 1. The Entrepreneurial Business Planning Process: Why Good Ideas Fail Planning is a process of setting goals and deciding how to attain them. Too often, though, those responsible for guiding a new venture fail to create a planning document that captures and communicates the opportunity. How can you work through the consequences of different strategies and tactics and fully clarify the human and financial requirements for launching and building the venture? 2. Comparing Entrepreneurial Business Plans Using actual examples of entrepreneurial business plans, you will learn to differentiate between those which are and are not likely to succeed. What to look for in these plans in terms of: Balance Completeness Impact The likelihood that the plan will generate investor confidence, whether the investor is internal or external to your organization. Includes important lessons for entrepreneurial business plan creation. 3. The Entrepreneurial business Plan Template What should the entrepreneurial business plan look like? Why you should be prepared to include such elements as: A description of the opportunity and its value to the company Market analyses and research Resource implications Sales strategies Financial forecasting Investment requirements Nay-sayers and skeptics Budget constraints Political rivalries Fit with corporate strategy The need for new learning Inaccuracies in your plan Doubts about your ability to revive a stalled venture Includes discussions and examples of how such problems were handled in actual situations. 2. When Things Go Wrong: Reassessing and Modifying the Business Plan How to be prepared when you need to modify the plan because: There are changes in the value of the opportunity (e.g. someone beats you to the market) Company strategy changes Problems with resources and cash flow emerge You suffer the loss of key team members or the venture champion The opportunity is not as good as you thought it was How do you know when it s time to pull the plug? 2. Life After Entrepreneurship: Lessons from Corporate Entrepreneurs What is the potential personal impact of leading an entrepreneurial venture? How might your career and your corporate life be affected? What those who have been through it have to say about the payoffs, lessons, career development changes, extended competencies, and altered points of view that corporate entrepreneurship can bring. 3. Identifying Obstacles to Implementation Selling the business plan inside the organization. What you can do to anticipate and overcome such internal obstacles as: For more information: Call : 800-672-7223, ext. 5161 Email: ExecEdInfo@huizenga.nova.edu Web site: www.huizenga.nova.edu/execed 7