This chapter examines how the DGM's motivation and strategy influence new business creation (Table 12.1).

A combination of business, organizational, and personal reasons motivates the DGM to undertake new business creation.

The DGM's motivation: business reasons

The DGM has extensive network of external contacts

All DGMs rely on their contacts with customers, suppliers, competitors, and other external sources to obtain information, ideas, and support. But the extent of their external network varies. A DGM with a wider network of external contacts is more likely to undertake new business creation for business reasons because he is more likely to have first-hand knowledge of customer needs and competitor actions that call for new initiatives.

DGM Buddy March of 3M Micrographics had spent his entire career in the industry and was known as the “industry godfather.” March loved to travel. Even when he had slowed down during his later years, March was still away from his office about a third of his total time, most of it visiting customers. He was full of insights regarding customer needs when he returned from a trip, and he had ideas for new products. As Ray Thorngate, who had served as his technical director for many years, recalled,