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 innovationDimension Definition ExampleOfferings Develop innovative new
products or servicesChilled 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