ENTREPRENEURIAL LEADERSHIP TRAINING

RESOURCE

Written by Yvonne OrmePublished 30th October 2016

Entrepreneurial Leadership Training Resource Preamble

This Training Resource has been primarily designed  for Middle/Senior managers, the purpose

of the resource is to; develop an awareness of how Leadership is evolving, identify which skills and behaviours which are attributed to Entrepreneurial Leadership, and how these skills can be developed.

The purpose of the Resource is to Educate Managers in how to lead in a Entrepreneurial Leadership style, which when aligned with organisational objectives the organisation is able to create value. Managers who have an awareness of social ,environmental and economic opportunity, are able to be  innovative and through thought and action can enhance their competitive advantage.

The concept of Entrepreneurial Leadership was founded by Babson College, where extensive research was conducted to enable a comprehensive understanding of the leader behaviours and attributes and how these are associated with Entrepreneurialism.

It is widely recognised  that in years passed, the organisational objective would be "profit maximization and shareholder value creation"(Porter and Kramer (2011) cited in Greenberg (2011).

Where as  in the 21st Century a new model of Leadership was required. Babson College therefore identified an opportunity to develop a leadership model that incorporates an opportunistic mind-set whilst also demonstrating strategic vision and an ability to influence and motivate others. The outcome was the concept of "Entrepreneurial Leadership". 

Entrepreneurial leadership theory has three underpinning principles, which essentially are the framework to the behaviour, attitude and mind-set of an entrepreneurial leader.

This Training Resource aims to assist Managers in adopting an Entrepreneurial style of leadership and enable them to gain an understanding of how individual actions and behaviour can influence the corporate environment in which they conduct their organisational activities.

Introduction To Training ResourceThis Training Resource has been designed for Supply Chainand Procurement Managers of Asda who work with Textile Manufacturers ,primarily in Bangladesh. The Resource aims to highlight Corporate Social Responsibility Issues and focus on how ourLeadership decisions impact upon the industry.The format of the resource is an eBook which will highlight the key principles of Entrepreneurial Leadership with the focus on Social, Environmental ,Economic , Responsibility and Sustainability (SEERS). The design of the Training Resource incorporates a range of self audit materials and case studies. The resource can also be used as a tool to reflect on the primary issues relating to the understanding of Entrepreneurial Leadership and the SEERS principle of creating value through social and economic opportunity.The resource will also highlight the importance of self development through group discussions, activities and shared leadership experiences. As part of the of the evaluation process, students will be able to participate in identifying each others strengths and weaknesses with the use of a SWOT analysis.

Objectives Outlined are the Aims and Learning outcomes of The Training Resource.

Aims

To gain an understanding of Entrepreneurial Leadership and the key principles that underpin this leadership style.

Learning Outcomes

To identify key global issues relating to SEERS and the supply chain.

To demonstrate and express an understanding of the skills and characteristics associated with entrepreneurial leadership.

Analyse self audit materials and complete a plan of action to allow you to remedy any skills shortages.

The Organisation

Asda is the second largest supermarket in the UK, owned by Walmart since 1999. Asda has 525 stores across the UK and employs over 175,000 people.

In 1989 Asda launched George clothing line and it is now sold in 560 stores

and through George.com which is one of the fastest growing online fashion

businesses serving over 800,000 customers a week.

The George range of clothing exclusive to Asda has contributed to changing

the face of fashion. George is one of the largest fashion retailers in Britain.

www.asdasupplier.com/about-us/about-asda http://corporate.asda.com/our-story/company-facts

The George clothing range is primarily manufactured in Bangladesh.In Bangladesh the textile industry accounts for 80% of its exports and approximately 20% of the countries GDP (Gross Domestic Product).Due to this rapidly expanding garment industry sector these figures are set to rise annually by 6.7% as the demand grows for low cost fashion.Manufacturers primarily produce garments for High street stores such as Primark, Matalan, Asda, Zara, Gap, Mango Benetton, H&M and many more.

Suppliers and Sourcing The Issues

Darka is Bangladesh's Capital city and is central to their expanding garment industry. Bangladesh has a population of 15 million of which it is estimated that 4 million are directly employed in the industry with

an additional eight million being indirectly involved in the garment industry.

Asda has a sustainable supply chain strategy, whilst it is committed to improving the safety and welfare of workers in the supply chain, equally important is the focus on social and environmental issues.

Asda has adopted the standards of Bureau Veritas Safety Assessment all garment factories in Bangladesh that supply their garments must comply with

these standards.

From 2013 Bureau Veritas is responsible for Building , Electrical and Fire

Safety Audits.http://direct.asda.com/george/sourcedbygeorge,default,pg.html

Entrepreneurial Leadership What Is It?

Traditionally Leadership studies and entrepreneurial Research have been perceived as two fields of

studies with numerous definitions for each, however there is a conceptual overlap. The study of leadership

and entrepreneurship is rarely studied in unison. If firstly we take an overview of leadership and an often

cited definition such as “Leadership is the process of directing the behaviour of others toward the

accomplishment of some objective” Certo and Certo (2014).

Mullins (2013) suggest “leadership is essentially a relationship through which one person influences the

behaviour or actions of other people” academics acknowledge common characteristics of leadership such

as, leadership involves non coercive influence, influence is goal directed and that leadership requires

followers, Greenberg (2013).

Stevenson & Gumpert (1985) cited in Entrepreneurial Leadership: What Is It and How Should It Be Taught

(2011) that general leadership consists of strategic vision coupled with the ability to motivate others

through the systems, processes and culture of an organisation, Kotter(1990).

continuedContinued

Also that "Entrepreneurship is the pursuit of opportunity beyond the resources one currently controls (Stevenson & Gumpert,1985).

In the article Entrepreneurial Leadership: What Is It and How Should It Be Taught (2011) Entrepreneurial

Leadership is considered to be a fusion of the two constructs. Entrepreneurial Leadership is a style of

leadership therefore that incorporates an opportunistic mind set whilst demonstrating a strategic vision and

an ability to influence and motivate others.

This style of leadership requires a different logic to decision making within business, whilst also recognising

social and economic opportunity to enable value creation for the organisation.

ENTREPRENEURIAL LEADERSHIP

Entrepreneurial Leadership is defined as a fusion of two constructs Stevenson & Gumpert,1985 (cited in Entrepreneurial Leadership; What is it And How Should It Be Taught, 2011) Firstly the concept generally is that “entrepreneurship is the pursuit of opportunity beyond the resources one currently controls” (Stevenson & Gumpert,1985). Secondly also cited in the same article “General Leadership consists of strategic vision coupled with the ability to influence and motivate others through systems, processes and culture of an organisation (Kofter,1990) cited in the same article.

VISIONOPPORTUNITY-FOCUSINFLUENCEPLANNINGMOTIVATING OTHERSACHIEVEMENT ORIENTATEDCREATIVITYFLEXIBILITYPATIENCEPERSISTENCERISK TAKINGHIGH TOLERANCE OF AMBIGUITYTENACITYSELF CONFIDENCEPOWER ORIENTATIONPROACTIVEINTERNAL FOCUS OF CONTROL

The skills attributed to Entrepreneurial Leadership are founded from overlaps between Entrepreneurship and Leadership, the two fields of study converge to identify the following a recognised skills;Becherr,Medenhall and Eickoff 2008;Cogliser and Brigham 2004; Fernald, Solomon and Tarbishy 2005;;Thornberry 2006). Cited in Understanding and Measuring Entrepreneurial Leadership Style, Journal of Small Business Management 2015 53 (1),pp,54-74

Entrepreneurial Leadership

The Key Principles• Cognitive Ambidexterity.• A Worldview; Developing

Social . Environmental, Economic Responsibility and Sustainability.

• Self and Social Awareness to create action.

3 Principles That Underpin Entrepreneurial Leadership

Cognitive Ambidextrous

SEERS

Self Awareness

What Is Cognitive Ambidexterity?

This is the first principle of Entrepreneurial Leadership and refers to a

different way of thinking and taking action to achieve organisational

objectives.

Engaging in prediction logic as stated by Fixon & Ray (2011) as a method

of thinking and planning future goals, using analysis and reflection of

past outcomes, whereby creation logic is centred around uncertainty in

unknowable situations.

Learning to be cognitively ambidextrous as an Entrepreneurial Leader

and engaging both prediction logic and creation logic when making

decisions enables an organisation to have a competitive advantage,

adapt and be flexible to changing operating business environments.

At different stages of organisation development the need to amend

strategies to fit with the organisational objectives is necessary for

continued growth.

Entrepreneurial Leaders can distinguish between when to rely on data

and when to be creative and innovative.Greiners growth model outlines different stages of organisational growth. ( Greiners Growth Model 1972).

Cognitive AmbidexterityPrinciples of a Prediction ApproachGoals are predetermined and achievable given known

information. Enough information is known for rigorous analysis and

testing.Tools and frameworks are available to guide decision making.Optimal solutions are identifiable within a given set of

constraints.Through analysis, risk can be minimized or mitigated to achieve optimal returns.Outside organization are seen as competitors and barriers to growth.

Adapted from Dew et al.2008; Greenberg et al. 2009; and Sarasvathy 2008.

If perceived resource needs are beyond your control, start to create something with what you have.

When the future is unpredictable, create the future by shaping opportunities.

When operating with limited information, take action in the world to acquire information but expect and leverage surprises or failures.

Optimal decision making is never possible in highly uncertain environments. By starting something with current available means, you are “satisficing” to take swift action.

Determine what you are willing to lose (money, time, and social capital) to engage in the activity. Once you know what you re willing to lose, risk is no longer a inhibitor to entrepreneurial action.

Outside organisations, customers, and self selected stakeholders are co-creators and not competitors.

Adapted from Dew etal.2008; Greenberg et al,2009; and Sarasvathy 2008.

Principles of a Creation Approach to Thought and Action

Principle 2 Principle 2 SEERS

•Social•Environmental•Economic•Responsibility•Sustainability

SEERS AND The Supply ChainIn todays volatile business climate organisations consider how

profitability and value can be created by addressing issues such as the

social impact of business activity, environmental and economic

considerations whilst also demonstrating that the organisation is

accountable, responsible and sustainable. All of which may seem like an

exhaustive task which involves organisations taking action to remedy

these issues, in order to capitalise on the opportunity they present .

Organisations continue to be under pressure to increase value for

stakeholders and as Freeman(2010) would suggest stakeholder theory is

concerned with the involvement of its customers suppliers, investors,

employees and communities integrating and sustaining relationships as

part of the community with a shared sense of what is valuable.

WorldviewPrinciple 2 SEERS

The SEERS principle of entrepreneurial leadership

focuses on the organisational leader or Manager

demonstrating a commitment to social, environmental,

economic, responsibility and sustainability.

In the Article Focusing On Value: Reconciling Corporate

Social Responsibility and Stakeholder Approach in a Network

World (2003) Wheeler, Colbert and Freeman identify two

models that have particular relevance to the understanding

of business Value and the different facets it incorporates.

Whilst there are numerous models demonstrating concepts

of ethics and CSR ( Corporate Social Responsibility) and how

it can be embraced by organisations to create value.

Continued

The US Committee for Economic Development, in

1971, described Corporate Social Responsibility as: (i)

related to products, jobs and economic growth; (ii)

related to social expectations; and (iii) related to

activities aimed at improving the social environment of

the firm.

Sethis 1975 three level model included: (i) social

obligation ( a response to legal and market

constraints; (ii) Social Responsibility ( congruent with

societal norms); and (iii) Social Responsive adaptive,

anticipatory and preventative (Journal of General

Management

Vol 28 3 2003).

Addition Sourceshttp://www.oecd.org/

https://www.unglobalcompact.org/

https://www.globalreporting.org/information/sustainability-reporting/Pages/default.aspx

Principle 3 Self And Social Awareness To Create

Action

What is Self Awareness And How does it Assist in Entrepreneurial Leadership

Greenberg (2011) in "The New Entrepreneurial Leader" argues that an

acute awareness of ones self is key to being an entrepreneurial Leader,

being conscious of our own capabilities enables personal development

and assists in fuelling our passion for the causes, projects or

innovations we believe in.

Utilising a reflective process to assess are Leadership Qualities and

organisational relationships which enables a leader to adapt, change,

overcome, whilst also realising potential.

Action Relating to yourself Discuss InGroups the following ProfessionalBehaviours.

http://www.corporate-entrepreneurs.com/wp-content/uploads/2015/10/Entrepreneurial-Audit-Data-Sheet-2015.pdf

http://www.surveygizmo.com/s3/1129604/Entrepreneurial-Audit-Self-Assessment

In The Face Of Globalisation How To Embrace A New Type Of Leadership

Watch Babson Education Video Clip

Group ActivityActivity 1.Analyse the Nike Case study and identify the ethical, responsible and accountable behaviours which led to the Company being Transformational.

Activity 2.Read the Rana Plaza Case study and utilising and incorporating SEERS into organisational strategies when sourcing in Bangladesh how could the Rana Plaza Tragedy been avoided ?

Nike & Rana Plaza Case Studies

Here are two case studies in groups discuss the following:

How have Entrepreneurial Leadership skills changed the way Nike operated its supply

chain.

How are economic and social opportunity realised by implementing SEERS into their

supply chain strategies?

Using the SWOT analysis Template with one for each case study assess Entrepreneurial

Leadership from a SEERS perspective and comment on the strengths, weaknesses,

opportunities and Threats for this organisational strategy.

Using 250 to 500 words summarise how this strategy added business value to each

organisation Nike and Asda.

http://nbs.net/knowledge/just-do-it-how-nike-turned-disclosure-into-an-opportunity/Https://www.gov.uk/government/case-studies/the-rana-plaza-disaster

Group Activity

In groups of about 8 persons work on ideas for ethical decision-making use information about from either case study for the activity.

1. Identify problems the entrepreneur might encounter in running this business in an ethical manner.

2. Develop a 10-point code of ethics for the business.

3. Discuss policies and procedures appropriate for this business that would support the code of ethics.

4. List as many ethical problems as possible that might be faced by employees during a normal work day. Discuss the possible solutions for the problems. Consider how a procedure guide might help employees to make the best decisions.

5. Members of the group should then role-play the process of handling an ethical issue with a customer, with a supplier, with a competitor, and with the son of the owner. Discuss the results of the role-playing exercise. If necessary you may want to modify your code of ethics at this time.

6. Each group should present their code of ethics to the class and discuss major outcomes of their discussion. Source: PACE, available from the Centre on Education and Training for Employment, The Ohio State University, Columbus, OH. 1-614-292-4277.

• Identify key principles of Entrepreneurial Leadership

1

• Explore situations where SEERS would Improve the decision process.

2

• Work in groups to discuss previous Entrepreneurial Leadership experiences

3

Learning Overview

Additional Reading & Sources of Information Relating to SEERS

http://corporate-citizenship.com/wp-content/uploads/Adding-Value-Report-Final.pdf

https://legacy.wlu.ca/documents/26179/Wheeler_Colbert_%26_Freeman_2003_-_Focusing_on_Value.pdf

Freeman, R. E., ‘Business Ethics at the Millennium’, BusinessEthics Quarterly, 10, No. 1, 2000, pp. 169-180

References

Asda Company Facts [Online Resource] [Retrieved 14th Nov 2016] http://corporate.asda.com/our/story/company-facts

Asda Supplier About Asda [Online Resource] [Retrieved 30thOct 2016] http://www.asaa.supplier.com/about-us/about-asda.

Babson Executive And Enterprise Education [Online Resource] [Retrieved 18th Nov 2016] https://www.babson.edu/executive-education/Pages/home.aspx

Becherr,Medenhall and Eickoff 2008;Cogliser and Brigham 2004; Fernald, Solomon and Tarbishy 2005;;Thornberry 2006). Understanding and Measuring Entrepreneurial Leadership Style, Journal of Small Business Management 2015 53 (1),pp,54-74

Bushra Tobah (2012) Just Do It: How Nike Turned a Supply chain crisis into Opportunity [Online Resource] [Retrieved 11th Nov 2016] http://nbs.net/knowledge/just-do-it-how-nike-turned-disclosure-into-an-opportunity/

Certo,S.C.,& Certo,S.T.(2014).Modern Management: Concepts And Skills (13th ed). England: Pearson

Dew et al (2008), Greenberg et al(2009),and Sarasvathy (2008) No Title. Manchester Metropolitan University, PowerPoint Slides Nov 2016 In Entrepreneurial Leadership

Entrepreneurial Audit [Online Resource] [Retrieved 10th Nov 2016] http://www.corporate-entrepreneurs.com/wp-content/uploads/2015/10/Entrepreneurial-Audit-Data-Sheet-2015.pdf

Freeman,R.E.(2000).Business Ethics At The Millenium.Business Ethics Quarterly, vol 10 (1),pp.169-180

REFERENCES CONTINUED

Freeman,R.E.(2010).Strategic Management: A Stakeholder Approach. New York: Cambridge University Press

George Welcome to Sourced By George [Online Resource] [Retrieved 1st Dec 2016] http://diret.asda.com/George/sourcedbygeorge,default,pg.html

Global Repoting.org [Online Resource] [Retrieved 8th Nov 2016] http://www.globalreporting.org/information/sustainability-reporting/pages/default.aspx

Greiner,L.E.,(1997).Evolution And Revolution As Organisations Grow.1972.Harvard Business Review,76 (3),pp.55-60

Greenberg,D.,Mckone-Sweet,K.,Wilson,H.J.(2011). The New Entrepreneurial Leader.San Francisco:Berrett-Koehler Publishers,Inc.

Kolb,A.Y.& Kolb,D.A.,(2012).Experiential Learning Theory. In Encyclopaedia of the Sciences of Learning (pp.1215-1219.US Springer

Kotter,J.P.(1990). A Force For Change; How Leadership Differs From Management: New York: The Free Press

Mullins,L.J.(2013).Management And Organisational Behaviour(10th ed).England: Pearson

OECD.Org [Online Resource] [Retrieved 14th Nov 2016] http://www.oecd.org/

References Continued

Piercy, N. and Giles, W., 1989. Making SWOT analysis work. Marketing Intelligence & Planning, 7(5/6), pp.5-7.

The Rana Plaza Disaster, Human Rights and Democracy Report 2013,Human Rights Internationally and Bangladesh [Online Resource] [Retrieved 11th Nov 2016] Https://www.gov.uk/government/case-studies/the-rana-plaza-disaster

UN Global Compact Online Resource Retrieved Nov 2016 from http://www.unglobalcompact.org/

US Committee For Economic Development [Online Resource] [Retrieved 25th Nov 2016] https://www.ced.org/

Wheeler,D,Colbert,B.& Freeman R,E,(2003) Focusing On Value: Reconciling Corporate Social Resposibility,Sustainability and Stakeholder Approach In a Network World Journal of General Management 28 (3) [Online Resource] [Retrieved 24th Nov 2016] https://legacy.wiu.ca/documents/26179/wheelercolbert%26Freeman2003-focusingonvalue.pdf