Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Foreword
- Preface
- List of abbreviations
- 1 Introduction
- 2 Why a consistent emphasis and approach for new business creation is beneficial but difficult to achieve
- I The business environment
- II The management culture
- III The corporate executives
- IV The division general manager
- V The division and its top management team
- VI Putting it all together
- Notes
- Bibliography
- Index
2 - Why a consistent emphasis and approach for new business creation is beneficial but difficult to achieve
Published online by Cambridge University Press: 22 September 2009
- Frontmatter
- Contents
- List of figures
- List of tables
- Foreword
- Preface
- List of abbreviations
- 1 Introduction
- 2 Why a consistent emphasis and approach for new business creation is beneficial but difficult to achieve
- I The business environment
- II The management culture
- III The corporate executives
- IV The division general manager
- V The division and its top management team
- VI Putting it all together
- Notes
- Bibliography
- Index
Summary
Some indicators of the emphasis on new business creation
Three indicators reveal the extent of emphasis on new business creation: money invested, time invested, and size of the new business creation pipeline.
The amount of money invested in new programs and/or in research and development activities is one useful indicator of the emphasis on new business creation. This can be measured by expenditures on new products as a percentage of sales and R&D spending as a percentage of sales, relative to the industry. The amount of time that a top manager spends on new business creation activities is another indicator of his emphasis on it, as DGM Dan Stewart of Monsanto Fab Products pointed out:
How much time did I spend in commercial development reviewing these programs, visiting potential customers and all the rest? In my internal public orations, what percentage of my time did I spend talking about ongoing business and how much time did I spend talking about the new products?
The size of the new business creation pipeline is another important indicator, as DGM Ian McVay of Monsanto Engineered Products explained:
The index that I use is the number of active programs within NPG [New Products Group], and the number of ideas awaiting first review and submission. We've got about thirty-five new ideas awaiting first submission and we've got about a dozen active programs within NPG. That's an index I keep in the back of my mind.
- Type
- Chapter
- Information
- Corporate EntrepreneurshipTop Managers and New Business Creation, pp. 29 - 38Publisher: Cambridge University PressPrint publication year: 2003