A Creativity Portfolio Concentrating on Creativity in Management and Entrepreneurship - Literature review Example

Table of Contents Introduction 3 Management Concept of Paradigm – Case Analysis 3 Paradigm Shifters 4 Paradigm Pioneers 4 Paradigm Settlers 4 Entrepreneurship/ Intrapreneurship - Article Summaries 5 Most great entrepreneurs dont drop out of Harvard - Martin Zwilling 5 The good intentions that will kill your business - Frances Frei and Anne Morriss 6 Inside the mind of a motivated employee - Linda A. Hill and Kent Lineback 8 Career Outlines 10 Steve Jobs 10 Henry Ford 11 Sergey Brin 12 “Andro Dgebuadze @ TEDxTbilisi: How to Actually Be Creative?” - A Creative Review 13 Conclusion 14 Introduction This is a creativity portfolio concentrating on creativity in management and entrepreneurship. Management Concept of Paradigm – Case Analysis Different authors and scholars have defined paradigm in different ways. It is defined as ‘the way we perceive our surroundings and the world’ by Adam Smith (in Barker, 1993). Paradigms help us to understand the world around us and hence assist us in predicting its behaviour. Willis Harmon put it more beautifully when he said paradigm is the “basic way of perceiving, thinking, valuing, and doing” (in Barker, 1993). Therefore, paradigm can be best explained as set of rules and regulations whose main purpose is to: Establish and define boundaries Tell us on how to act and behave to be successful within the limits of those boundaries The same concept of paradigms is applicable to organizations. Every organization develops an organizational culture over time which defines its paradigms. That is, every organization acts within a set of rules and boundaries. Employees in an organization behave and act within this paradigm (Barker, 1993). A simple yet best example of a paradigm in a workplace is the working hours. Most of the companies have specific boundaries with respect to working hours, such as 8am-4pm. The time slot is the boundary within which all employees are expected within this boundary. Whenever there is a change in the paradigm and a new paradigm is created, there are 3 main positions taken by people or organizations with respect to this paradigm shift: Paradigm Shifters These are the people or organizations that are responsible for the shift. There are the ones who identify the need to change or recognise the opportunity attached to change that can solve a certain problem. Paradigm shifters are capable of solving problems with creativity and innovation and infuse new life into the model (Barker, 1993). Apple Inc., was the first in the industry to identify the opportunity and market available for personal computers. Apple introduced personal computers to the market and hence is a paradigm shifter. Paradigm Pioneers Paradigm pioneers are those who support the paradigm shift and believe in its potential. They trust their instincts and intuition, and believe in the shift even before it has succeeded. They show the courage to implement the new idea or change initiated by the paradigm shifters (Stephen, & Timothy, 2007). Dell Computers is an example of paradigm pioneers as they did not come up with the idea of personal computers but identified the opportunity associated with it when Apple introduced personal computers to the market. They used innovative ways to succeed in the personal computer market such as factory-direct production, built-to-order, etc. Paradigm Settlers Paradigm settlers, unlike paradigm pioneers, do not trust and implement the new paradigm until it has succeeded and it is safe to do so. They accept the change in paradigm only when it is safe to do so or its potential is proved. Paradigm settlers enjoy the benefits of the risk taken by paradigm pioneers (Barker, 1992). Paradigm settlers act only when there is no risk of failure. In the automobile industry, Ford came up with the idea of assembly line production and proved that it was a successful paradigm shift. Companies like Toyota and Honda have enjoyed the benefits of the risk taken by Ford. By the time Toyota and Honda implemented assembly line production, it was already proved that the shift was a successful one and there was no risk of failure. Hence, Toyota and Honda fall in to the category of paradigm settlers. Entrepreneurship/ Intrapreneurship - Article Summaries The section summarises 4 contemporary articles on entrepreneurship and intrapreneurship and throws light on new ideas and ideologies of different experts and scholars in the field. Most great entrepreneurs dont drop out of Harvard - Martin Zwilling In his article, “Most great entrepreneurs dont drop out of Harvard”, Martin Zwilling has attempted to clarify the common misconception among many, that to be a successful entrepreneur one must drop out of college. It is to certain extent true that entrepreneurs have a natural inclination towards entrepreneurship and hence the belief that entrepreneurs are born and not made cannot be wholly dismissed. This does not mean that to be an entrepreneur, one must drop out. There are natural musicians, but they too are taught music. Academic research suggests that at least four years of college is very handy for an entrepreneur. Entrepreneurs like Steve Jobs and Mark Zuckerberg are in monitory and an exception to the rule. Majority of the entrepreneurs who have made it big have completed college and will tell you that experience pays off. It is the multiple real life experiences of college and exposure to markets that is core to success of many entrepreneurs. Therefore, the main question that an entrepreneur must ask is not whether college is necessary but what must be done once in college do develop entrepreneur skills. The author advices wannabe entrepreneurs to indulge in the following in college that would brush or develop their entrepreneur skills: There are course on entrepreneurship in college. Study entrepreneurship but major in a specific discipline such as computer science that will help you understand business in real world. Practical experiences are important, and hence try to incorporate it into the course work. Summer internships can give you much needed real life exposure. Colleges will give you access to faculty who have had quality real life experience. Tap into their experience and make the most of it. Colleges have business plan competitions. Take part in these competitions and try writing business plans for any ideas that you have. College is the best place to build business networks. Faculties can help you build a network consisting of successful entrepreneurs which will also include alumnus from the college. There will be numerous other opportunities too. Act on your ideas. Do not wait until everything falls in place but try to build from scratch and find mentors who can guide. There is nothing that can replace practical experience gained by trying. Make the most out of your stay at college and once you are out, your academic credentials do not mean much but the experience you have gained will prove to be invaluable (Zwilling, 2011). The good intentions that will kill your business - Frances Frei and Anne Morriss In their article, “The good intentions that will kill your business”, Frances Frei and Anne Morriss try to address the issue of how good intentions alone are not enough for a business to be successful. Customers always want the best service and the companies that offer the best service are rewarded with profits while those who fail suffer. Southwest and Zappos is an example of good service being rewarded while Bank of America is an example of how poor customer service can negatively affect the company. Everybody knows that good service has great rewards for a business but not many are able to achieve this. The reason for this is “good intention”. Most companies try to do the right thing always and in all aspects, and this is the main reason that they fail miserably in offering the best service. At the end of the day, main purpose of business is to make profits. With good intentions, businesses forget to enhance their profits and only try to improve their service which proves to be disastrous for the business. Following are three main good intentions that more often than not result in bad outcomes: Great at everything A business must not try to be great at everything. It is very important to strike a balance. Great services are those which over-deliver on the aspects that are of great value to the customers and under-deliver on those aspects that are of least importance for the customers. When doing this business is able to not only create value for customers but also take a share in the value. If a customer tries to be the best in all aspects of the business, it will suffer financially. By delivering on what customer values the most, company will be able to satisfy the customers. Hard Work Employees Hard work of employees will not always translate into great service. It is important that employees work effectively and efficiently by using all the tools they have got to deliver great service. It is this effectiveness and efficiency that will result in great service and not pure hard work. Giving Service Way Great relationships are built on generosity. Give great service to customers who are willing to pay and create tremendous value for them, and in the process capture a part of that value for the business. This is the secret behind making generosity work. Creating value for customers without any returns would spell dooms day for the business Therefore, entrepreneurs must not only aim to provide great service but also try to build a viable business model around. Striking a balance between the two is key to business success. Good intentions alone do not lead you to success and in some case are actually holding you back (Frei & Morriss, 2012). Inside the mind of a motivated employee - Linda A. Hill and Kent Lineback Linda A. Hill and Kent Lineback in their article “Inside the mind of a motivated employee” address the most important challenge that every entrepreneur faces: employee motivation. A study by two sociologists has found that employee’s spirit is at a high at the start of the day, hits bottom at noon and is back to the top during the later part of the day. A simple conclusion that can be drawn from this is that work affects the spirit of an individual. There is a cycle of positive and negative feelings that is observed during a day. This has huge implications for entrepreneurs and managers. To effectively manage employees it is important to understand the reason behind these cycles and address them, but it is even more important to understand that positive and negative affects/moods are not interrelated. When the employees have negative feelings/moods, there output is negatively impacted. There could be various reasons for this such as poor relationships at workplace, obstructive or demanding rules and policies, lousy working conditions, poor compensation and benefits, etc. Most managers address these issues and remove these objections which negatively affect the productivity of an employee. This will lead to the employees return to their normal productivity. But this is not enough if an entrepreneur wants his/her employees to commit wholeheartedly and put in the extra effort. In order for employees to put in extra effort, entrepreneurs must have in place motivation drivers that will motivate their employees to put in their best effort. Some motivational drivers are compelling purpose, challenging goals and plans, clear roles and responsibilities, etc. Therefore, it is not only enough for entrepreneurs to remove obstructions to motivation but also have motivation drivers in place to extract superior performance from the employees (Hill & Lineback, 2011). The Skills Necessary to Be a Successful Intrapreneur (Corporate Entrepreneur) - Lisa Quast Intrapreneurship has gained a lot of popularity in the recent years as big companies have found it hard to sustain their competitive edge in the market. Intrapreneurship is said to be the answer to this problem. Intrapreneurship is similar to entrepreneurship, except that focuses on how employees can act as entrepreneurs within an organization. A survey from Ernst & Young has identified specific characters that an employee must possess to become a successful intrapreneur. These characteristics are necessary in a large organization as the structure of these organizations is rigid and stifle the spirit of entrepreneurship inside an organization. Characteristics and skills of a successful intrapreneur are discussed in the following: An intrapreneur to be successful has to have good knowledge of both external and internal environment. Should be a visionary and have the willingness to change the status quo. New product development can be extremely difficult in large organizations and there will be numerous challenges. Only with a string vision can these challenges be overcome. Also must be able to think out of the box and have little considerations for status quo. Must have diplomatic skills and the ability to function with and guide cross-functional teams. Perseverance is the most important quality necessary. There will be numerous challenges and obstacles, and only with perseverance will the intrapreneur be able to go the distance. Hence, it is important for an intrapreneur to develop these skills in order to be successful (Quast, 2011). Career Outlines Following is the career outlines of four entrepreneurs who have made a huge difference through their creative approach to entrepreneurship: Steve Jobs Steve Jobs redefined entrepreneurship and the way people perceive of entrepreneurs. Starting from the very first product that came out of his company to the latest one, he did not come up with the idea of the product. He always saw the idea or the opportunity that was overlooked by others in a product. He did not come up with the idea of a computer or iPod or iPad, but he reinvented these products with his creative approach to product design and marketing. The circuitry and software work on Apple II was completely Steve Wozniak’s and Steve Jobs took all the marketing decisions. His approach to market research was very interesting. He did not believe in conducting market research to identify the needs of the customers. He famously said that customers do not know that they want until it is shown to them. All his products were built based on this philosophy (Imbimbo, 2009). Consumers did not know that they needed an iPhone or an iPad but they could not live without it once they had it. He believed in simplicity. When all other companies were trying to make products more complex and compact, Steve Jobs focused on making products simple and easy to use. The “one button” approach is an example of this. Starting from the very first mouse to the iPhone and the iPad “one-button” idea is implemented. It is through his creative and innovative approach to entrepreneurship that he was able to build companies that changed everything. Henry Ford Henry Ford through his creativity and innovation not just changed the automobile industry but completely changed the manufacturing industry. Ford Motor Company founded by Henry Ford even today is one of the leading manufacturers of automobiles in the world. His three main contributions were the Model T, assembly line production and five dollar day. Each of this showcases how Ford used his creative approach to find solutions to complex problems. His creation of Model T in 1908 not only did make cars affordable but also was of high quality when compared to competitors. When others were struggling to produce cars that could sustain terrible roads of the time, Ford created a model that was easy to drive, of high quality, respond to terrible roads, easy to repair and affordable. The next big contribution was “assembly line production” or simply known as “Fordism”. This revolutionised the manufacturing industry by making possible the mass production of goods (inexpensive) possible. This has had a great impact on the speed of industrial development in the last century. Another of his important creative contribution is the introduction of five-dollar workday. Employee turnover was huge at the time and companies were struggling to keep their employees. Ford came up with a creative solution to this problem. He increased the daily wages from approx $2.3 to %5 per day. This not only solved the problem of employee turnover but also proved to be greatly beneficially with respect to profits as there were reductions in training costs along with increase productivity (Marquis, 2007). Sergey Brin Sergey Brin is an internet entrepreneur and co-founder of Google one of the most creative and profitable internet companies. Sergey Brin along with Larry Page came up with a creative algorithm to build a search engine on the web. The result of this idea was the founding of Google in a garage in 1998. Since then company has gone on to become one of the most valuable companies of its time. Sergey Brin believed in a very simple philosophy that “knowledge is always good and certainly always better than ignorance”. It is this philosophy and creative approach that they have adopted at Google to come up with innovative and creative products. Google’s motto is simple: to make world’s information “universally accessible and useful”. At Google, they have been creative at every aspect of management of the business and mainly have redefined people management in organizations. Employees at Google have been given complete freedom to choose the way they want to work as long as they fulfil their employer’s expectations. Numerous perks have been offered to employees and are made completely comfortable at the workplace. Google’s 80/20 innovation model is another way using creativity to solve complex problem. Google’s employees are required to spend 80% of their time on core projects of the company and the remaining 20% can be used to work on projects of their interests and passion (Vise, 2008). Richard Branson One of the most iconic and flamboyant entrepreneurs of his time, Richard Branson is the founder of Virgin Group which has 400 companies. Known for his ability to be creative and risk taking, he has transformed a company that started as a record label company has today the most recognised global brand. His tremendous growth as an entrepreneur is mainly due to his creative style of management. Richard Branson has not invented or come up with any new idea but has entered every industry with a creative approach and changed the way products and services are offered to customers. Be it Virgin Atlantic or the more recent Virgin Galactic, he has been able to come up with creative ways to manage, market and sell his products and service. He believes in employee empowerment and has given his employees freedom to make their own decision and learn from it. Also Virgin is always on look out for creative people who can add value to the company’s culture. Unlike, other companies Virgin does not hire people when needed but hires round the year to find the best people to fit their organizational culture. Richard Branson and his company are one. He has been successful in building brand based on his beliefs (Redmond, 2011). “Andro Dgebuadze @ TEDxTbilisi: How to Actually Be Creative?” - A Creative Review In his talk at TEDx, Andro Dgebuadze discusses what is creativity and if it is achievable (Dgebuadze, 2012). In order to do this, he demonstrates his iPhone application that is built to replicate the playing of a guitar. He believes that different people think about creativity in different ways. Some are happy with work that demands creativity and see it as a challenge while some believe that creativity is not their piece of cake. It is true that not all believe that they can be creative. Many are of the belief that creativity is something you are born with and not something that can be developed or achieved. Andro Dgebuadze seconds this and says that creativity is something that can be achieved or managed. To him creativity is not something that can be planned and at the same time it is also not accidental. Creativity is a continuous process and it can be achieved. He says that creativity is something in between thinking and feeling (Dgebuadze, 2012). Creativity is the skill of noticing the details, listening and slowing down the thought process. It is the process of asking the questions that goes beyond the known boundaries of knowledge and the finding the answers to those questions. His argument makes great sense and he also supports it by demonstrating his application which has fused IT and music. In today’s competitive world there is a need for companies to be creative and innovative in every aspect of business and if an individual believes that creativity is not his piece of cake, then he will not be able to contribute to the organization. Hence, it is very essential, especially in the business world, that creativity is achievable and everybody can be creative. Conclusion This creativity portfolio has successfully analysed the different management concepts of paradigm shifts. It has summarised four contemporary articles that deal with entrepreneurship. It also comprises of career outlines of four entrepreneurs who used creativity to redefine businesses and a creative review of Andro Dgebuadze’s TEDx talk. References Barker, J.A. (1992). Future edge: discovering the new paradigms of success. New York : W. Morrow. 1992. Barker, J.A. (1993). Paradigms: the business of discovering the future. NY: HarperCollins Publishers. Dgebuadze, A. (2012). “How to Actually Be Creative?”. TEDx Event. [Online]. Available at: http://www.youtube.com/watch?v=qULiMev7Hug. Accessed on 28 March 2012. Frei, F. & Morriss, A. (2012). “The good intentions that will kill your business”. CNN Money. [Online]. Available at: http://management.fortune.cnn.com/2012/03/28/the-good-intentions-that-will-kill-your-business/. Accessed on 24 March 2012. Hill, L.A. & Lineback, K. (2011). “Inside the mind of a motivated employee”. CNN Money. [Online]. Available at: http://management.fortune.cnn.com/2011/10/21/inside-the-mind-of-a-motivated-employee/. Accessed on 24 March 2012. Imbimbo, A. (2009). Steve Jobs: The Brilliant Mind Behind Apple. NY: Gareth Stevens Publishing. Marquis, S.S. (2007). Henry Ford: an interpretation. MI: Wayne State University Press. Quast, L. (2011). “The Skills Necessary To Be A Successful Intrapreneur (Corporate Entrepreneur)”. Forbes. [Online]. Available at: http://www.forbes.com/sites/lisaquast/2011/06/20/do-you-have-the-skills-to-be-a-successful-intrapreneur-corporate-entrepreneur/. Accessed on 25 March 2012. Redmond, S.R. (2011). Richard Branson: Virgin Megabrand Mogul. Greenhaven Press. Stephen, P. R. & Timothy, A. J. (2007). Organizational Behavior. NJ: Prentice Hall. 2007. Vise, D.A. (2008). The Google Story. London: Pan Macmillan Publishers. Zwilling, M. (2011). “Most great entrepreneurs dont drop out of Harvard”. CNN Money. [Online]. Available at: http://finance.fortune.cnn.com/2011/12/06/most-great-entrepreneurs-dont-drop-out-of-harvard/. Accessed on 25 March 2012. Read More