Managing the organizational maze in birthing new corporate ventures

Abstract

The speed and the degree with which new technologies and markets change create the need for more effective approaches for dealing with these strategic challenges. Moreover, as industry observers often note, globalization offers as many problems as opportunities. Organizations continually wrestle with the challenge of how to compete in this new competitive landscape. Unfortunately, many organizations are encumbered by cultures, mindsets. Astute companies, however, are finding that venture teams can be a useful approach for managing emerging competitive opportunities. How are corporate ventures defined? Zahra defines internal ventures this way: Corporate entrepreneurship may be formal or informal activities aimed at creating new businesses within established companies through product & process innovations, and market developments. These activities may take place at the corporate, division, functional, or project level, with the unifying objective of improving a company's competitive position and financial performance. [15] This presentation offers several perspectives on managing internal corporate ventures. Unfortunately, to create a major new venture is one of the most difficult challenges organizations encounter. Research suggests that there have been for more venture failures than successes. However, the positive news is that we have learned a lot from the rich experiences of companies that have used internal venturing as an avenue for growth and change. In this presentation, the emphasis is on what is required to create and manage new ventures or significant new business opportunities within existing organizations. Topics include: 1) why corporate venturing can be an excellent avenue for growth; 2) forming, chartering, and organizing the venture team; 3) identifying and evaluating growth opportunities; 4) managing & championing the venturing process; 5) the politics of venturing; 6) gaomomg & maintaining organizational support: & 7) learning from corporate venturing as a form of organizational renewal. Also addressed are the common causes of venture failure as well as what we know about the primary drivers of venture success. The presentation concludes with a number of suggestions for those charged with managing new organizational ventures.