The Entrepreneur: The power of thinking small
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Transcript of The Entrepreneur: The power of thinking small
Kerry Foods
Cathy Kidd
#miicmo17
Entrepreneurship:
The Power of Thinking Small
o Cathy Kidd
o Kerry Foods
Many faces …
What I’ll share today:
o Myths & Truths
o What the theory tells us
o 3 Rules
o An alternative perspective
The Definition: Entrepreneur
Source: Harvard Business School
The Data: Start Ups
Source: US Bureaus of Labour Statistics
The Data: Survival rates
Source: Anna Vital, Funders & Founders.
The Darers: Famous Entrepreneurs
#1. Myth
Myths Truths
Entrepreneurship is having the
initiative to turn a good idea
into a profitable business
venture
i.e. you only need a solid idea
and the ability to cope with risk
Most start ups fail.
All successful entrepreneurs have failed.
Most entrepreneurs pivot from their original
idea.
#2. Myth
Myths Truths
Entrepreneurship only exists in
small, start-up type companies
i.e. all large companies require rigid
systems and controls
Almost 25% Fortune 1000 companies
are actively nurturing entrepreneurial
environments and mind sets, globally
i.e. there is an increasing number of
large Corporate Entrepreneurs
Google 20% Project
Founded in 1998, processes over 1 Bn data requests per day; 25,000 employees globally; US 24 Bn sales
Source: Google Website and Annual Report
Google X ‘Moonshot Factory’
Founded in 1998, processes over 1 Bn data requests per day; 25,000 employees globally; US 24 Bn sales
Source: Google Website and Annual Report
#3. Myth
Myths Truths
Entrepreneurship only exists in new
and emerging sectors
i.e. where fluid change is normalised
across the sector
Entrepreneurship can reinvigorate mature
sectors and industries.
In fact, stable mature categories are highly
attractive to entrepreneurial companies.
Scotch Whisky
Monkey Shoulder
Playing in a ‘fat, lazy category’?
“If you dislike change,
you’ll like irrelevance even less”
Eric Shinseki, US Army General
The Barriers: Thinking BIG v. Thinking Small
Cultural
Cultural focus on
consensus
thinking; risk
adversity; fear of
failure
Educational
Education system
focused on learning
by repetition vs.
critical thinking
Organisational
Very hierarchical
structures; no
incentives/rewards
for entrepreneurial
behaviors
Regulatory
Inefficient process
for launching new
businesses or
ideas, low ease of
doing business
So let’s take a look at the theory
Collaboration and sharing of ideas
Taking risks and celebrating failures
DIRECTION
Making entrepreneurship an explicit
strategic objective
Build it into the DNA of leadership
BEHAVIOR
ARCHITECTURE Entrepreneurial
Organisations Targeted incentives and
rewards
Flexible, rotational programs
Open workspaces
People Impact
Awards / prizes
Public recognition
Empowerment
Increased autonomy
Pay rises / Bonuses
Target driven compensation
What motivates
people?Psychologic
al Rewards
Satisfaction
Financial
Rewards
So, 3 ‘Simple’ Rules on Thinking Small
Rule #1: Keep it simple. Define the WHY.
Rule #2: Reward behaviours, not process.
Rule #3. Embrace failure. Obsess over learning.
Rule #1: Keep it simple. Define the WHY.
Source: Start with Why, Simon Sinek
Be clear on your front line
Source: The Founder’s Mentality, Zook & Allen
Stay connected to it, often.
It is the Day Job.
Tim Martin
• £1.5bn
• 37,000 staff
• 950 pubs
• Tim: 100 pub audits per month, 2 days per
week
• Head Office staff - 15 pub audits per month
• Bar staff – know 100 customer names
Rule #2. Reward behaviours, not process
“Our success will be largely affected by our
ability to attract and retain motivated
employees. Each must think like, and therefore
must actually be, an owner.’‘
Jeff Bezos, Amazon CEO
Standardised service is good.
Personalised service is better.
Employees are empowered to think
on their feet and respond to
customer needs.
#2. Reward behaviours, not process
Rule #3. Embrace failure
“I’ve missed more than 9,000 shots.
I’ve lost almost 300 games.
I’ve failed OVER and OVER and OVER again in my life ….
and that's why I succeed.”
Michael Jordan, NBA Hall of Famer.
Be obsessed with learning
The Data
Maternal-mortality rate, per 100,000 childbirths
A quick recap
Rule #1: Keep it simple. Define the WHY.
Rule #2: Reward behaviours, not process.
Rule #3. Embrace failure. Obsess over learning.
An alternative angle
High-learning environments
The Learning Pit
Source:: James Nottingham
So finally…
“Proving is Good
Improving is Better”
James Nottingham