Shaping Entrepreneurial Mindsets

Shaping Entrepreneurial Mindsets

The Palgrave Macmillan IESE Business Collection is designed to provide

authoritative insights and comprehensive advice on specific management topics.

The books are based on rigorous research produced by IESE Business School pro￾fessors, covering new concepts within traditional management areas (Strategy,

Leadership, Managerial Economics) as well as emerging areas of enquiry. The

collection seeks to broaden the knowledge of the business field through the

ongoing release of titles, with a humanistic focus in mind.

Available titles:

MANAGING eHEALTH

Magdalene Rosenmöller, Diane Whitehouse and Petra Wilson

LEADERSHIP DEVELOPMENT IN A GLOBAL WORLD

Jordi Canals

GLOBAL TRENDS

Adrian Done

MANAGEMENT ETHICS

Domènec Melé

THE ESSENTIAL FINANCE TOOLKIT

Javier Estrada

THE FUTURE OF LEADERSHIP DEVELOPMENT

Jordi Canals

HUMAN FOUNDATIONS OF MANAGEMENT

Domènec Melé and César Gonzàlez Cantón

STRATEGY AND SUSTAINABILITY

Michael Rosenberg

SHAPING ENTREPRENEURIAL MINDSETS

Jordi Canals

Forthcoming titles:

ETHICAL FINANCE

Jan Simon

Series ISBN: 9780230292499

Shaping Entrepreneurial

Mindsets

Innovation and Entrepreneurship in

Leadership Development

Edited by

Jordi Canals

Dean and Professor of Economics and Strategic Management,

IESE Business School, Spain

Selection and editorial matter © Jordi Canals 2015

Remaining chapters © Contributors 2015

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DOI 10.1057/9781137516671

v

List of Figures, Tables and Exhibits vii

Preface and Acknowledgments ix

List of Contributors xiii

Part I Nurturing Entrepreneurial and

Innovation Capabilities

1 Leadership Competencies for Innovation and

Entrepreneurship: A Top Management Perspective 3

Jordi Canals

Part II Entrepreneurship, Intrapreneurship and Innovation

2 Entrepreneurship and Companies’ Success 27

Pedro Nueno

3 Leading the Startup Corporation: The Pursuit of

Breakthrough Innovation in Established Companies 38

Tony Davila and Marc Epstein

4 Empowering Growth from Within: Cultivating

Conditions for Intrapreneurship to Thrive 59

M. Julia Prats and Susanna Kislenko

5 Developing an Innovation Mindset 81

Bruno Cassiman

6 The CEO as a Business Model Innovator 97

Joan Enric Ricart

Part III Innovative Methodologies and Learning

Processes to Foster Innovation

7 Design Thinking and Innovative Problem Solving 119

Srikant Datar and Caitlin N. Bowler

8 Global Leadership Development and Innovation Inside 139

Pankaj Ghemawat

9 Innovation, Blended Programs and Leadership

Development: Key Success Factors 158

Eric Weber

Contents

Part IV Innovation at Business Schools: Creating an

Entrepreneurial Learning Context for Leadership

10 Entrepreneurship and Innovation: Business Schools

as Drivers of Change 175

Bernard Ramanantsoa

11 Road Signs for Business and Business Education:

Navigating the Geography of Social Value Creation 189

Peter Tufano

12 Developing Entrepreneurship Capabilities in

the MBA Program 203

Franz Heukamp

Index 220

vi Contents

vii

List of Figures, Tables and Exhibits

Figures

3.1 Management models for innovation 39

3.2 The Startup Corporation combines startup qualities

with the strength of a corporation 42

6.1 The four areas of a CEO’s responsibility 99

6.2 The key tasks of a CEO 101

7.1 Creative matrix—Swiffer example 131

7.2 Concept poster 132

7.3 Prototype—Test—Learn 133

7.4 Stakeholder analysis 135

8.1 Sign-up patterns for the GLOBE MOOC on Coursera 142

9.1 An interconnected learning model 160

9.2 Participant interest in distributed learning activities

over time 166

9.3 Timing of distributed learning activities to maintain

participant interest 166

Tables

1.1 Leadership competencies for innovation and

entrepreneurship 6

1.2 CEO’s key areas in developing leadership competencies

for innovation and entrepreneurship 10

1.3 Some levers of an innovative corporate culture 11

1.4 Qualitative criteria to assess new business ideas 17

1.5 A CEO’s agenda 22

2.1 A business plan: an outline 35

3.1 Different types of innovation require different

management approaches 41

3.2 Mechanisms to shape cultures 47

viii List of Figures, Tables and Exhibits

4.1 Organizing innovation—selected cases 64

7.1 Innovation framework phases 121

Exhibits

12.1 Examples of required entrepreneurship courses

in MBA programs 211

12.2 Examples of elective entrepreneurship courses

in MBA programs 215

ix

Preface and Acknowledgments

Over the past decade, leadership development in international compa￾nies has mainly focused on how companies should attract and nurture

local talent to better manage their global strategy and operations in

new markets. This is an uphill task, but many companies have designed

and implemented good corporate policies and practices to tackle this

important issue.

Nevertheless, the acceleration of global economic integration is only

one of the many challenges that companies will face over the next

years. The need to grow internationally will remain strong, but many

emerging markets will provide companies fewer growth opportunities

than in the past. As some emerging countries become more mature, new

local, nimble competitors will find smart ways to successfully compete

with multinational firms, both at home and abroad. Technology will

also exert additional pressure on traditional competitors to lower costs,

and smaller local competitors will benefit from it because they have

lower legacy costs. As a result, rivalry coming from growth markets,

based both on low cost and innovation, will become more intense.

In a world with more volatile and uncertain growth, corporate inno￾vation and entrepreneurship will become more important than ever to

create and sustain growth opportunities. Mid-size and large companies

need to accelerate innovation and the discovery of new opportunities,

quickly test them and go fast to the market. In this process, companies

should develop the capabilities to behave like agile entrepreneurs.

The new business landscape and the need to generate growth oppor￾tunities inside and outside the firm push CEOs and global HR managers

rethink leadership development and adopt a different mindset regard￾ing innovation and growth. The battle to attract, retain and develop

local talent will become more complex, both in mature and growth

markets. Companies should think beyond the traditional benefits of

cultural diversity and consider how to help general managers develop

the capabilities to operate in different geographies and business func￾tions, with a diverse innovation and entrepreneurial mindset, and

transfer the experiences and best practices across countries.

This book deals with the challenge of how to include in global lead￾ership development programs the need that companies have to speed

up innovation and entrepreneurial initiatives to sustain corporate

x Preface and Acknowledgments

growth. We know a few facts about what makes innovation work and

why entrepreneurship in large, established companies succeeds or

fails. Unfortunately, our knowledge and expertise in helping design

and implement initiatives that improve leadership development along

those dimensions is still small. This book tries to provide an answer to

the challenge of what companies can do to generate a more solid and

deeper entrepreneurial mindset among their people, and how to do it in

a consistent way with the firm’s strategy. It also offers some experiences

on how business schools try to tackle this challenge.

This book is structured in four parts. Part I: Nurturing Entrepre￾neurial and Innovation Capabilities provides an introductory frame￾work to understand how to boost entrepreneurial and innovation

capabilities for global leadership development and highlights an agenda

for top managers in this crucial area (Chapter 1).

Part II: Entrepreneurship, Intrapreneurship and Innovation

includes some chapters that deal with key topics: the impact of entre￾preneurship on successful companies and society (Chapter 2); devel￾oping company capabilities and organizational design for continuous

innovation (Chapter 3); creating the context for sustained corporate

entrepreneurship (Chapter 4); a conceptual framework to develop

innovative mindsets and capabilities in large, established firms through

executive education programs (Chapter 5); and business model innova￾tion and the role of CEOs in this process (Chapter 6).

Part III: Innovative Methodologies and Learning Processes to

Foster Innovation deals with some new methodological initiatives

developed at business schools to boost the innovation mindset of

participants and maximize learning and development. It includes new

initiatives on design thinking curricula and frameworks (Chapter 7) and

the design of innovative blended courses on leadership development,

combining online and face-to-face courses, and their learning potential

(Chapters 8 and 9).

Finally, Part IV: Innovation at Business Schools: Creating an

Entrepreneurial Learning Context for Leadership offers an overview

on different approaches to make a business school a better context for

developing entrepreneurship and innovation capabilities. Chapter 10

describes how to create a unique learning ground for developing entre￾preneurs. Chapter 11 opens a new perspective on how business schools

should innovate by embracing wider notions than economic value

creation and introduce social value explicitly. Chapter 12 explains how

MBA programs can be very good development contexts for young entre￾preneurs and which elements make those contexts more impactful.

Preface and Acknowledgments xi

These chapters share some key attributes. The first is that their

authors take the top management perspective on the issues explored

and how CEOs and senior managers look at leadership development

and think about growth in a more uncertain world. The second attrib￾ute is their inter-disciplinary design, involving experts from different

areas and experiences.

The chapters’ authors come from different academic and geographi￾cal backgrounds. They include scholars in the areas of innovation,

entrepreneurship, leadership development, strategy, marketing and

operations. They work at international business schools in Europe, the

US and Asia. Some of them are involved in developing universities and

working with companies in Africa and Latin America as well. The geo￾graphical and cross-cultural expertise of the authors is diverse and deep,

which gives the work a very insightful perspective.

The title of this book was inspired by R. McGrath and I. MacMillan’s

(2000) pioneering book The Entrepreneurial Mindset (Boston, MA:

Harvard Business School Press) and the widespread use of the entre￾preneurial mindset concept. McGrath and MacMillan provide some

unique insights on the nature and implications of this mindset. Our

book offers a different, complementary perspective: how to shape that

entrepreneurial and innovation mindset, based on the assumption that

different methodologies and frameworks can make a positive contribu￾tion to it. Moreover, we should try different and eclectic approaches, as

the authors of the different chapters do in this volume.

Most of the chapters were presented at the 2014 IESE Global Leadership

Conference, held in Barcelona on 3 and 4 April 2014. Conference speak￾ers included CEOs and board members such as Isak Andic (Mango),

Patricia Francis (International Trade Center), Rosa García (Siemens),

Denise Kingsmill (IAG), Bruno di Leo (IBM), Hans Ulrich Maerki (ABB),

Andrea Morante (Pomellato), Francisco Reynés (Abertis), Kees Storm

(AB InBev), George Yeo (Kerry Logistics); senior HR vice-presidents

such as Jorge Aisa Dreyfus (HSBC), Marta de las Casas (Telefonica) and

Erwin Lebon (General Electric); scholars, experts and business schools

deans such as Wendy Alexander (LBS), Rolf Boscheck (IMD), Srikant

Datar (Harvard Business School), Marta Elvira (IESE), John Gapper

(Financial Times), Franz Heukamp (IESE), Pankaj Ghemawat (IESE),

Pedro Nueno (IESE), Michael Pich (Insead), M. Julia Prats (IESE), Bernard

Ramanantsoa (HEC Paris), Sandra Sieber (IESE), Peter Tufano (Oxford

Saïd Business School), Eric Weber (IESE), Zhang Weijiong (CEIBS) and

Adrian Wooldridge (The Economist). My IESE colleagues Carlos García￾Pont, Alex Lago, Elena Liquete, Javier Muñoz and Mireia Rius, and the

xii Preface and Acknowledgments

Alumni and Institutional Development, did a great job organizing and

planning the conference.

I am very grateful to Liz Barlow and her team at Palgrave Macmillan.

They have been an important partner in the intellectual effort to open

new ground in studies around leadership development from different

perspectives. Liz also helped improve the outline of the book and high￾lighted some important topics to be covered, including the title. Tamsine

O’Riordan provided the initial support for the book. Kiran Bolla and

Geetha Williams helped me effectively during the editing process. I am

also very grateful to Teresa Planell, Míriam Freixa and Carolina Olmo,

who helped me in the book-editing process with professionalism, while

managing so well the daily activities of the dean’s office.

Jordi Canals

IESE Business School

April 2015

xiii

List of Contributors

Caitlin N. Bowler, Research Associate, Harvard Business School

Jordi Canals, Dean and Professor of Economics and Strategic Manage￾ment, IESE Business School, University of Navarra

Bruno Cassiman, Nissan Professor of Strategic Management, IESE

Business School, University of Navarra, and Herman Daems Chair of

Strategy and Entrepreneurship, University of Leuven

Srikant Datar, Arthur Lowes Dickinson Professor of Accounting,

Harvard Business School

Tony Dávila, Alcatel-Lucent Professor of Entrepreneurship and

Accounting and Control, IESE Business School, University of Navarra

Marc Epstein, Distinguished Research Professor of Management

(Retired), Rice University

Pankaj Ghemawat, Anselmo Rubiralta Professor of Global Strategy,

IESE Business School, University of Navarra

Franz Heukamp, Professor of Managerial Decision Sciences, IESE

Business School, University of Navarra

Susanna Kislenko, PhD Candidate, IESE Business School, University of

Navarra

Pedro Nueno, Bertran Foundation Professor of Entrepre neurship, IESE

Business School, University of Navarra, and President, CEIBS

M. Julia Prats, Professor of Entrepreneurship, IESE Business School,

University of Navarra

Bernard Ramanantsoa, Dean and Professor of Strategy and Business

Policy, HEC Paris

Joan Enric Ricart, Carl Schroeder Professor of Strategic Management,

IESE Business School, University of Navarra

Peter Tufano, Peter Moores Dean and Professor of Finance, Saïd

Business School, University of Oxford

Eric Weber, Professor of Accounting and Control, IESE Business School,

University of Navarra

Part I

Nurturing Entrepreneurial and

Innovation Capabilities