The Roles of Individual Knowledge and Corporate Entrepreneurship as Competitive

Advantages

Heather Simmons JonesMHRD 830, Dr. Bronack

Fall, 2010

Competitive Advantages:Overview

Elements of a Learning Organization

Rise of Learning Organizations

What is Individual Knowledge

What is Corporate Entrepreneurship

Case Study-FGP International

Barriers for Adoption of the Concepts

Summary

What is a Learning Organization? An organization that facilitates the learning

of all its members and continuously transforms itself –Pedler, Burgoyne, and Boydell

An organization where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to learn together-Senge

Why a Rise in Popularity? Competitive Environment

The fight for survival amongst competitors to do more with less

Rate of ChangeThe ability to adopt new ideas and have the

flexibility to make changes quicklyPersonal Fulfillment

The desire to keep employees engaged and fulfilledDemand for Creativity and Innovation

The need for new products and services to support an ever-changing world

Individual Knowledge: What and Why

What:An individual’s intellectual capitalExpertise of the individual within the organization

Example: Senior-level accountantWhy:Maximize the potential of the individuals and the

company in order to achieve ever-changing objectivesPeople transfer information more readily “in” than

“between” organizationsThe ability to transfer knowledge across an

organization quickly

Corporate Entrepreneurship:What and Why

What:The process whereby an individual or group of

individuals, in association with an existing organization, create a new organization or instigate renewal or innovation within that organization-Sharma

A “big-bet” as outlined by PorterWhy:Means of accumulating, converting and leveraging

resources for competitive purposes Developing and using product, process, and

administrative innovations to rejuvenate and redefine the firm and its markets or industries

Case Study: FGP International

Then Now1982-Began with

Executive Placement in Textiles and Apparel

Added Information Technology

Only Recruited Senior and Middle Management

Dying Industry SectorsLittle Diversification in

Company

Executive Placement in Engineering, Finance, Accounting, HR, Sales, Marketing, Non-profit, and Healthcare

Added Temporary StaffingAdded Outplacement and

TransitionAdded HR ConsultingWell Diversified Company

FGP International:Individual Knowledge and Corporate Entrepreneurship as

Competitive Advantages

Create the combination of culture and climate that maximizes organizational learning on how to create superior customer value in dynamic and turbulent markets-DeGeus and Dickson

Mission to MarsTransferred individual knowledge from tenured

employees and heard feedback from employees joining the team from other industry sectors

Surveyed client needs and received feedbackLooked at competition and opportunities for new

products and services

FGP International:Individual Knowledge and Corporate Entrepreneurship as

Competitive Advantages

Mission to Mars, contd.

Encouraged employees to think innovatively and

establish new business lines and niche focuses

Rewarded employees for creative approaches to

increased productivity

Asked the team to be externally focused at all times

Encouraged employees to take “big-bets” with

support

FGP International:Individual Knowledge and Corporate Entrepreneurship as

Competitive AdvantagesEstablishment of Core Values

1. Dedicated client focus2. Possess an entrepreneurial spirit3. Live with a passion for winning4. Build authentic relationships5. Create opportunity and financial wealth6. Consistently show integrity…to build client trust Encourage use of “individual knowledge and

corporate entrepreneurship” as competitive advantages

“Exceed customer expectations by providing value” identified as third competitive advantage at FGP

Barriers for moving towards a Learning Organization where Competitive Advantages Thrive

Egos and hierarchy must be laid aside

Size of organization is important

Managers must become dissatisfied with mediocrity

Has to possess organizational buy-in in order to work

Champions must feel supported by management

Shared understanding of change by all parties

Broad consensus amongst all levels

SummaryOrganizations are well-served by moving to a

learning organization

Organizations benefit from identifying their

competitive advantages

Deeper research and study should be given to the

empirical data that shows financial gain from

corporate entrepreneurship so that leaders see a $

value to this engagement

Questions

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-Thank you