prof stephen ball cubo annual conference 24th june 2011 the i's have it! entrepreneurial...

PROF STEPHEN BALL

CUB O ANNUAL CONFERENCE24TH JUNE 2011

The I's have it! ENTREPRENEURIAL PRIORITIES FOR HOSPITALITY AND RELATED ORGANISATIONS

It is possible to do things differently to how they have always been done

AGENDA

The need for an entrepreneurial approachThe changing landscapeUnderstanding entrepreneurshipBut what about the I's?Three key questions

AGENDA

The need for an entrepreneurial approach

The importance of entrepreneurship to hospitality organisations and beyond

‘... an entrepreneurial approach is no longer seen as an option but as the only option for managers seeking to enhance the performance of their organisations.’

Wickham (2004)

The importance is demonstrated from theory, business practice, organisations, awards, events and from people's opinions.

A practitioner view

“Entrepreneurship is critical to the hospitality sector as with rapidly changing consumer demands and expectations, constant innovation by businesses is vital to meet and, hopefully, exceed these evolving demands and expectations”

Rob Bailey, Director of Five Lines Consulting

and previously Senior Manager, KPMG - Tourism and Leisure Advisory Services (2005).

And another view

"….. entrepreneurs, in the hospitality and leisure industries, have influenced and pushed back the boundaries of our social world; for example, imagine not being able to take a low cost flight, stay in a budget hotel or eat a cheap meal. Entrepreneurs are the life blood of the hospitality and leisure industries, trail blazers whom take calculated risks, not unnecessary ones, to bring to the masses something new and unique, adding interest and colour to our lives''.

Leslie Bailey, Senior Director, Menu Solutions, McDonald's Corporation - Asia Pacific, Middle East & Africa (2005)

A global phenomenon

A 'Bushism' and the origin of 'entrepreneur'

The problem with the French is that they don't have a word for entrepreneur (George W. Bush discussing decline of French economy with British Prime Minister Tony Blair)

Richard Cantillon, an Irish-French economist, coined the term entrepreneur and advanced its usage circa 1730.

AGENDA

The Changing Global EconomyThe changing landscapeThe War on TalentSustaining Customer SatisfactionFour Key Issues

Change happens - we had better be prepared for it!

http://vimeo.com/1758558

External influences

13

The changing landscape -some macro and micro changes

Inflation

Towards sustainability - issues to contemplate

Dematerialisation - doing more with lessEnergy Efficiency

Equipment Buildings Control Systems

Renewable Energy SourcesEfficient Resource Utilisation/Waste

Reduction

Towards sustainability and consumer food taste shifts - issues to contemplate

Processed Natural/FreshStandardised Different/DiverseGlobal Foods Local TastesBiotechnological Organic/AuthenticFactory/Intensive Environmentally

Sustainable

The future university sector

More brandingMore Chinese customersMore technologyMore globalisedMore polarised and value driven

(Johnson, 2011)

AGENDA

The Changing Global EconomyTowards a Sustainable FutureUnderstanding entrepreneurshipSustaining Customer SatisfactionFour Key Issues

Building blocks of successful entrepreneurship

The DNA of an entrepreneur Alert to opportunities Anxiety Creativity Decisiveness Easily bored Independent nature Inner focus of control Innovatory tendency Need to achieve Risk taking propensity Self-confidence Self-motivation Versatility Vision Self realization through action

An entrepreneur 'always searches for change,

responds to it, and exploits it as an opportunity'

Peter Drucker

AGENDA

The Changing Global hanging Global Economy

The Changing Global EconomyThe War on TalentBut what about the I's?BurtFour Key IssuesBurtFourKey Issues

The I's! - The entrepreneurial priorities

Intrapreneurship Identifying opportunities Innovation - Ideas, ImplementationInspirational leadershipIndividual contributions and

incentives

Improved performance

What is intrapreneurship?

It is the act of behaving like an

entrepreneur, except within a larger organization. An intrapreneur focuses on innovation and creativity and transforms a dream or an idea into a reality, by operating within the organizational environment. Intrapreneurs embody the same characteristics as the entrepreneur and think the same way by seeking out opportunities, which benefit the organisation.

Ideas: Does your organisation have a low sperm count?

"The best way to have a good idea is to have a lot of ideas."— Dr. Linus Pauling

You need 1,000 crazy ideas to find one or two that will change your company. If you have 6 million sperm trying to find one egg and one succeeds, you do not worry too much about the 5,999 million that do not make it. Too many organisations suffer from a low corporate sperm count (Gary Hamel, 2002).

Three central elements of innovation

Inn0vation: The core of intrapreneurship

"Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being learned and capable of being practiced. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation."

— based on a quotation from Peter Drucker

Think of the consequences of not innovating!

McDonald'sJeff Stratton, Chief Restaurant Officer

Innovation philosophy: "We drive innovation by putting customers at the heart of all. Inspired innovation starts with our commitment to better meet their needs in areas such as speed, accuracy, taste, and convenience. What our customers think, feel, and experience under the Golden Arches inspires me and my team as we push forward fresh ideas and concepts for McDonald's."

“Innovation distinguishes between a leader and a follower.”

Steve Jobs, Apple

Personal involvement with innovations

Incremental 'doing what we do better'

Radical 'new to the organisation'

Product - MSc International Hospitality Design and Management Consultancy for FCSIProcess- Cook-Chill System at London Hospital, WhitechapelEvent - Annual National Hospitality Student conference (CHME) Organisation - Eat Sheffield (Sheffield Business School)

Dimensions of innovation

Dimension Definition Example

Offerings Develop innovative new products or services

Chilled foods; Japanese style conveyor belt method of delivery

Platform Use common components or building blocks to create innovate offerings

Menus in Chinese restaurants

Solutions Create integrated and customised offerings that solve customer problems

Paypal online payment system

Customer experience Redesign customer interactions across all touch points

High street banks front-of-house

Processes Redesign core operating processes to improve efficiency and effectiveness

Fast-food production line processes

Organisation Change form, function or activity scope of business

Contract catering to facilities management

Presence Create new distribution channels where offerings can be bought

Mobile phone apps purchasing

Supply chain Think differently about sourcing

Buying consortia

Internal constraints to intrapreneurship and innovation

Unsupportive organisationCulture/habits e.g. 'profit now' syndromeExcessive formalisationTime, resources, incentivesFear of failureResistance to change

What are the barriers in your organisation?

General guidelines for a conducive climate for intrapreneurship

Psychological security -separate innovative failure from personal failure

Continued stimulation

Unobtrusive authority/minimise coercive power

Flexible time and resource framework

TRANSFORMATIONAL (BASS, 1985)

1. INDIVIDUALISED CONSIDERATION

2. INTELLECTUAL STIMULATION3. INSPIRATIONAL MOTIVATION

4. IDEALIZED INFLUENCE OR LEADERSHIP BY CHARISMA

Inspirational leadership

AGENDA

The Changing Global EconomyTowards a Sustainable FutureThe War on TalentSSSThree key questionsStSustaining ustomer Satisfaction

KEY QUESTIONS(1) Is there a willingness to change to be successful?

KEY QUESTIONS(2) Is there an alternative to entrepreneurship?

KEY QUESTIONS(3) Innovate or adapt?

IN A CHANGING WORLD THE NEED TO ALWAYS . . .

. . . REINVENT AND INNOVATE

The changing face of Wimpy

HTTP: / /WWW.WIMPY.UK.COM/HISTORY.ASP

Polytechnic of West London

So in the end ….

The past is a foreign country they do things differently there (LP Hartley, 1953)

Today is yesterday's pupil (T. Fuller, 1660's)The empires of the future are the empires of

the mind (W. Churchill, 1943) So don't be frightened of the future,

imagine it, prepare for it and remember the I's.

PROF STEPHEN BALLC U B O C O N F E R E N C E2 4 T H J U N E 2 0 1 1

H T T P : / / W W W. S H U. A C . U K / S B S / R E S E A R C H/ C T H E R / S TA F F / S P _ S T E P H E N _ B A L L . H T M L

The I's have it! ENTREPRENEURIAL PRIORITIES FOR HOSPITALITY AND RELATED ORGANISATIONS

Author of chapter 'Entrepreneurship in Hospitality' in forthcoming book: SAGE Key Concepts in Hospitality Management

Fast-food operations and their management editor, Stephen D. Ball.

Entrepreneurs can change the world!

http://www.youtube.com/watch?v=T6MhAwQ64c0&feature=related