entrepreneurial mindset - this is · pdf filewhat do we mean by an entrepreneurial mindset?...
TRANSCRIPT
ACI Europe Regional Airports Conference and Exhibition
Ljubljana, Slovenia Wednesday April 4th 2012
Key Note Address:
Building an Entrepreneurial Mindset in Regional Airports
Dr Richard Plenty
Managing Director, This Is... www.thisisinternational.com
Setting the scene ... This Is ...
Our vision... creating better organisations
Our work with airports Worked with DAA on transforming their organisation since 2005 Presented numerous papers at Airport Conferences since 2008 Including leadership in regional airports, Dubrovnik 2010 Interviewed Airport CEOs for series of articles in Airport World since 2009 Including challenges facing regional airports May 2010 Co-organisers of ACI Europe Leadership and Change Forum since 2011 Provided HR Strategy training to airports on behalf of ACI World since 2012
The focus of this talk
Building an entrepreneurial mindset in regional airports ….
What do we mean by an entrepreneurial mindset?
‘A set of personal dispositions, also known as the
entrepreneurial spirit, which leads to the innovative practice of
- Identifying and creating opportunities
- Acting to manifest these opportunities in a productive way’
Exercise 1 – Thinking out of the Box
When I give the instruction, open the box and take out the
object inside
You have 90 seconds to think of as many uses for the object as
you can
Kyle Macdonald - one red paperclip
If you don’t start, how can you finish?
Start small, think big, have fun
Just trade it!
If you really want it, you will
Made 14 trades from paperclip to house
Peter Boyle, entrepreneur ...
Jewellery entrepreneur
From ‘barrow boy’ to 40 shops
Turnover £35m, employs 500 people
You can always earn money if you put your mind to it
If you have to work all night, you do
I began to realise that I could do anything if I wanted to
You make real money by understanding what the customer will buy
Good social skills, respect for others, give a little - all go a long way
It’s dangerous to stand still - in street trading someone will take your pitch
Do you recognise these entrepreneurs?
Summary of the entrepreneurial mindset ...
Very strong desire for self reliance
Strong self belief and self efficacy
‘It can be done’
Passionate and open to new experience
Ability to identify and create opportunities
Prepared to collaborate
‘Call to action’ and prepared to work hard
Is there an entrepreneurial mindset in European
regional airports?
On a scale of 1-10 , where 1 is not at all and 10 a great deal
How much of an entrepreneurial mindset do you think the
European regional airport sector demonstrates at present ?
The challenge faced by regional airports
Size matters: smaller airports harder to run at a profit
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Find ways of supporting smaller airports by shaping policy
Ensure connectivity and support regional economies
Political Strategy
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Support
Smaller
Airports
Entrepreneurial Strategy
Reduce costs and increase revenues
Could have large impact on viability of marginal airports
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Decrease
Cost/PAX
Increase Commercial
revenue/PAX
A mindset of reducing costs
New Ways of Providing Customer Service Challenge all existing way of doing things - Use of new technology e.g. security, queues
- Any non productive use of labour e.g. opening hours
- Look for opportunities for outsourcing, shared services
Multiskilling, Mobility and Flexibility Look for ways of making better use of people - What do staff do when planes not in turn round
- Fire fighters, ground handlers, maintenance, snow clearing
- Management tasks
Usually means changing the ‘psychological contract’
A mindset of increasing revenues
Aeronautical Revenue Where possible, route development the key - Collaboration with airlines, tourism, businessmen, politicians
- Business parks, hotel destinations, conference facilities
- Developing connectivity as a regional hub
- However, there may be limits to what is possible
Ancillary Revenue Ancillary revenue can always be reviewed - What customers want: retail, services
- New ways of raising money: car parking, advertising
- Associated businesses: car valeting, servicing, mail
- Use of infrastructure: ‘concert hall’, offices, driving lessons
Consider new business models and partnerships
What can kill off an entrepreneurial mindset …
Organisation does not want challenge and ideas Status, hierarchy, over regimentation, ideas seen as threat
Unions and staff ‘protecting’ each other People who have grown up in company stuck in their ways
Little experience of thinking ‘business’ or ‘creative’ People lacking the skills to work in this way
Not the right calibre or experience of staff
Example: Inglis Lyons, airport leader ... Managing Director, Highlands and Islands Airports
Became Managing Director May 2005
Runs 11 airports from 8,000 – 600,000 pax/annum
Aggressive cost reductions, new revenue streams
Changed structure
Large head office managing 11 aerodromes to
11 semi-autonomous airports supported by Head Office
Gave airports more commercial freedom Accountability and ownership
Intuition as well as discipline and structure
Changed mindset
Challenged all ‘habits’ and existing ways of doing things
Looked for best practice examples outside
Training & Development
Leadership
Teambuilding
People Management
Building an entrepreneurial culture
Convince others (and yourself) this is the right approach
- Agree the reasons, rationale, strategy
- Set strategic objectives and KPIs
Take stock of the current situation
- What is your track record?
- What has been stopping you?
- What capabilities do you have?
Build your organisation capability
- Review organisation structure and culture
- Invest in training and development
- Look externally at best practice
Change mindset of relying on others
- External funding not the first port of call
- First, look for what you can do yourself
Building an entrepreneurial culture
Entrepreneurs are simply those who understand that there is little difference
between obstacle and opportunity and are able to turn both to their advantage.
Niccolo Machiavelli
I wanted to be an editor or a journalist, I wasn’t really interested in being an
entrepreneur, but I soon found I had to become an entrepreneur in order to
keep my magazine going.
Richard Branson
I had to make my own living and my own opportunity! But I made it! Don't sit
down and wait for the opportunities to come. Get up and make them!
Madam C.J. Walker (first woman to make a million)
Thank you!
Don’t forget the ACI supported
Leadership and Change Management
Forum and Exhibition
London, Oct 17-19 2012