Make markets inside the firm
The indirect route to improve agility and innovation
An entrepreneurial spirit captures the imagination of employees and serves as an engine of innovation. Hierarchy can lead to bureaucracy and risk aversion and limited innovation. In this intriguing article, Jules Goddard describes a number of ways to redesign hierarchical organisations to release the internal entrepreneur
On a Recent business leadership programme at London Business School, a senior executive of one of Britain's major engineering companies described two different internal cultures in his organisation, each triggered by a different set of circumstances: one (the ‘default’ culture) was rational, structured, process-centric, rule-bound, careful, risk-averse, deferential and compliant; the other, when there was a crisis of some sort, was emotional, spontaneous, problem-centric, improvisational, courageous, communitarian and entrepreneurial.