Designing an executive MBA around entrepreneurship: changing a mindset and the creation of SMEs.

Bell, Joseph R.

INTRODUCTION

As the workplace and our drivers for our economy continue to evolve, so must how we approach the education of our students. "The modern workplace no longer resembles the factory assembly line but rather the design studio, where the core values are collaboration and innovation ..." (Mandel, 2007, p. 45).

EXECUTIVE EDUCATION

Executive education is the "hottest product in the growing MBA market" and is forcing universities to heighten their focus on the quality of their executive MBA programs (Tyler 2004, p. 105; Page et al 2004; Filbeck and Webb, 2000). In 2004, 53% of executive MBA programs around the globe showed an increase in interest from perspective students, while traditional MBA programs, reported a decline in applications. (Logue, 2005) Sihler (1993) found that students of executive education are more demanding and critical and value experiential learning more than other students. Cason (1993) asserted that executive education students prefer a results oriented program.

Filbeck and Webb, (2000) interestingly found that executive MBAs are more interested in seeing linkages between different materials and the big picture and also have a desire for eclectic pedagogical style. In adopting an eclectic approach may encourage executive MBAs to stretch themselves personally in less developed areas and assist in their overall professional development. They found that the entire class, regardless of learning styles, is best challenged by mixing a lecture format with active learning techniques and should be exposed to complexities and ambiguities. They concluded that it is valuable for all executive MBAs to work in groups that are outside their preferred dimensions and by doing so will again, assist in their professional development.

Executive MBAs are collaborative exchanges and provide for hands-on projects with many students using actual projects related to their employer with some even contributing to new product development. (Tyler 2004; Logue 2005)

Because of the continued interest in executive MBA programs, universities are looking at different possibilities for positioning their executive MBA products in the marketplace. It appears that even in the top ranked executive MBA programs that the schools position themselves to address the student constituents, and to a far lesser degree, their employing organizations even though estimates show as high as 84% of executive MBA students have their programs funded by their employer. (Page, et al, 2004)

The research of Page, et al, (2004) lists a number of criteria programs need to address to better serve the needs of the employer. Listed first on the criteria list is "maximize the organization's competitive advantage" (p.8) and specifically addresses problem solving and strategic thinking while also listing a proficiency across a number of selected business disciplines.

ENTREPRENEURSHIP EDUCATION

Attributes usually associated with entrepreneurship include innovative approaches to problem solving, high readiness for change, self confidence and creativity uniquely contributes across all economic systems. It is now recognized that entrepreneurship is not exclusive to the creation of new businesses that it also offers opportunities within existing organizations and is often termed intrapreneurship or corporate entrepreneurship. (Heinonen, et al 2007)

Traditional teaching methods, such as lectures and examinations, are not the most effective means of encouraging entrepreneurial skills set development. (Gibb, 2002; Sogunro, 2004) In entrepreneurial learning, traditional teaching methods need to complemented (Gibb, 1993; 1996; 2002) by activities such as learning by doing and engaging students

in active learning or that participate in the control and mold the learning situation (Gorman et al, 1997; Fiet, 2000).

In the Heinonen, et al (2007) study, which focused upon entrepreneurial course work for bioscience researchers, they recognized and divided class participants into groups with inclinations toward intrapreneurship, and others in entrepreneurship. They found that by dividing the class into two groups, and not forcing everyone along the path of starting a business changed the attitudes of the intrapreneurship-oriented students, some of whom even became more positive toward the overall course.

INTRAPRENEURSHIP

Intrapreneurship is the practice of creating new business products and opportunities in an organization through proactive empowerment. Intrapreneurship focuses upon an individual's or team's willingness to take calculated risks and act to create business opportunities. A cognitive decision to embrace intrapreneurship needs to start at the top and be communicated throughout the organization. Employees need to be presented with opportunities to apply their knowledge and develop new skill sets and create intrapreneurial opportunities for organization. (Eesley and Longnecker, 2006)

A recent editorial in U.S. Business Review (Kurkowski, 2007), in quoting Damian McKinney of McKinney Rogers consulting, suggested that large organizations need to nurture entrepreneurial qualities in existing employees and create a culture that supports innovation, risk taking and flexibility. And, because of rapidly growing globalization and competition, and rate of technological changes, intrapreneurship provides a vehicle for organizational renewal and competitive positioning (Seshadri and Tripathy, 2006).

Organizations face increasing competition and are under tremendous pressure to find competitive advantages and places innovation at the forefront to be a determining factor in the organizational success (Eesley and Longnecker, 2006)

From the standpoint of the employer fostering intrapreneurship allows employers to attract and retain the best talent. A survey of young professionals in 2004 by Common Purpose, showed that 44% of those young professionals claimed to be given little opportunity to be creative or innovative and 57% were searching for new employment. The article goes on to suggest that the company should send people to training courses, bring in entrepreneurs, and help create a culture of lifelong learning. (Hanson, 2005)

JUSTIFICATION

Kuratko and Montagno (1989), suggest that intrapreneurship training requires more than activities that engage innovators but needs to create new managerial practices. Their model relies upon a mix of lecture, discussion, videotaped case studies, small group activities, project team development, individual assessment, and presentations. Zahra, Nielsen and Bogner (1999) suggest that there are important consequences of intrapreneurship activities for building organizational competency while it contributes significantly to organizational learning and knowledge.

Marcus and Zimmerer (2003), identify that there is a noticeable absence of intrapreneurial programs and that intrapreneurial activity has the potential to dramatically improve corporate profitability. They go on to state that intrapreneurship has broad implications for both manufacturing and educational organizations and needs to be integrated throughout educational and industrial organizations.

THE COURSE

The college has decided to incorporate a threaded, experiential-learning component to the overall curriculum into the EMBA program because of the high-caliber, mature and seasoned individuals recruited into the program. Historically, the EMBA program has attracted participants from diverse backgrounds including public and private sector leaders and represents such fields as science and engineering, healthcare, information technologies and others. (Filbeck and Webb, 2000; Logue, 2005)

Specifically, at the onset of the EMBA coursework, students will attend an overview session where they will gain an understanding of the technology assessment process and the components necessary to complete a feasibility analysis or business plan. Support materials like Abramo and Edmondson's "BioStory: Convincing Investors to Finance a Biotech Company" (2006) will be incorporated into the initial sessions. Student teams, comprised of 4-5 students, will work under the supervision of the faculty and in cooperation with, the SBDC, the College of Engineering, and the Medical (UAMS) and Law (Bowen) Schools. These "teams" will initially identify promising technologies, and over the course of the ensuing EMBA program of study, assess the technological viability and the business feasibility of each project. The EMBA coursework will assist in assessing market, financial, production, and other business-related issues. The result of this 18 month long project will be a professionally drafted technology and business assessment accompanied by a formal presentation to all interested parties.

The course points allocation (see, Appendix 1), scoring rubric (see, Appendix 2), and presentation criteria (see, Appendix 3) have been included in the appendices.

THREADED

The students are required to complete a 48 hour curriculum over a period of 18 months. Course work includes traditional business curriculum of accounting, marketing, finance and others. The faculty has committed to utilize aspects of the student projects as examples within their specific course materials while it is anticipated that the students will engage the faculty, as subject matter experts, to support their projects. Some courses are better suited for some courses such as finance while less suited for others like Field Study in International Business.

In addition to "threading" through existing coursework, six-credit hours will be specifically designed to support the student project:

   One two-credit hour segments will be delivered at the beginning the
   course. The initial meeting will set the ground work for the
   assessment of the technologies, introduce the students to the
   technologies available for study, and finally, map out the
   expectations for the overall project.

   Two one-credit segments will be delivered one-third and two-thirds
   through the course. These will serve as formal checkpoints to
   determine progress on the projects and to map out future
   expectations.

   A final two-credit hour segment will be delivered near the end of
   the 18-month EMBA program. This will provide for submissions of the
   completed project and presentation of the findings to the
   stakeholders.

Where appropriate, the projects will be further honed for entry into the Reynolds Governor's Cup Business Plan Competition each spring. The competition offers a total of $104,000 in prize money and unprecedented exposure to the Arkansas business community. The University already has a successful "proof of concept" where an EMBA team actually brought a product to market. This successful venture will serve as a model and inspiration to future projects.

The outcomes:

   A real world application project for the students

   A unique skill set developed through the process with direct
   application to other entrepreneurial startup opportunities

   Assessment of Arkansas-based technologies

   Potential for commercialization of those technologies

   Collaborative development amongst institutions and academic
   disciplines

   Actual product/service commercialization

CONCLUSION

The author suggests that widespread benefits may result from exposing ascending and top level corporate management to the principles of intrapreneurship. This program may well produce an opportunity to directly survey, on an ongoing basis, the results of such training. There also exists a strong potential to create SMEs (Small and Medium-sized Enterprises) around the technologies. It must be noted that for intrapreneurship to be successful within a large organization there must be top down and broad based acceptance with in the organization.

APPENDIX 1
ASSIGNMENTS

                        ASSIGNMENT                       Max. Pages

1    Concept/Patent Search                                    1
2    WOW Statement                                       3 sentences
3    Company/Product Description                              1
4    Industry Analysis                                        2
5    Market Research/Target Market/Competitor Analysis        3
6    Marketing Plan and Pricing Strategy                      2
7    Technology Application                                   1
8    Operations Plan                                          2
9    Strategy/Risk                                            1
10   Financials *                                            4+
11   Executive Summary                                        1
12   Presentation
     Total                                                   17+

                        ASSIGNMENT                       Points

1    Concept/Patent Search                                 25
2    WOW Statement                                         25
3    Company/Product Description                           25
4    Industry Analysis                                     50
5    Market Research/Target Market/Competitor Analysis     50
6    Marketing Plan and Pricing Strategy                   25
7    Technology Application                                20
8    Operations Plan                                       25
9    Strategy/Risk                                         25
10   Financials *                                         100
11   Executive Summary                                     25
12   Presentation                                         100
     Total                                                495+

* Financials are not page length restricted and will include:
Income statement - 3 years, monthly year 1 and 1/4'ly years 2-3
Statement of Cash Flows - 3 years, monthly year 1 and 1/4'ly years 2-3
Balance Sheet - 3 years, year-end
Timeline
Assumptions/research support
Breakeven analysis (graph)

APPENDIX 2 SCORING RUBRIC

Assignment                                      Strong

    1             Concept         External partner technology idea
                                  or self generated exceptional
                                  growth business model

               Patent Search      Detailed search report from
                                  USPTO.gov along with multiple
                                  internet and industry/trade-based
                                  searches and utilization of
                                  professional interviews

    2          WOW Statement      Clearly articulate in 3 or fewer
                                  sentences the business model
                                  and quantitative potential of the
                                  business

    3             Company         Company name, form of
                                  business, logo, specific location
                                  and founders

                  Product         Detailed description of the
                Description       product or service including but
                                  not limited to dimensions,
                                  colors, packaging, production,
                                  warranty, etc.

    4        Industry Analysis    10+ credible and timely primary
                                  and secondary sources analyzed
                                  and applied with citations and
                                  sourcing throughout the
                                  document including but not
                                  limited to stage of the industry,
                                  trends, technology, competitors,
                                  outlook, etc.

    5         Market Analysis     Develop a deep understanding
                                  of the retail market including
                                  primary and secondary cited
                                  sources with very large market
                                  potential

               Target Market      Develop a deep understanding
                                  of the target customer including
                                  primary and secondary cited
                                  sources analyzed and applied
                                  that results in a reasonably
                                  defined and quantified target
                                  market

                 Competitor       Create a competitor matrix
                  Analysis        based upon strategic differences
                                  between your venture and the
                                  competitors, defining who the
                                  competitors are and your
                                  competitive advantage(s)

    6          Marketing Plan     Tie together the market
                                  characteristics of the
                                  product/service to the
                                  educational and motivational
                                  mediums for the reasons the
                                  customer buys within a strategic
                                  budget

              Pricing Strategy    Provide cited research
                                  supporting production cost,
                                  wholesale price and retail price

    7            Technology       Provide a detailed and well
                Application       researched depiction of the
                                  technology needed to operate
                                  the business

    8         Operations Plan     Provide a detailed and well
                                  researched depiction of the
                                  operational issues associated
                                  with the business including but
                                  not limited to facilities,
                                  equipment, logistics, production
                                  and all corresponding costs

    9             Strategy        Create a concise paragraph
                                  describing the business model
                                  and how the venture makes
                                  money

                   Risks          Evaluate potential risks the
                                  venture faces through primary
                                  and secondary research
                                  including but not limited to
                                  sec.gov/edgar filings

    10           Financials       Create the requisite documents
                                  supported by primary and
                                  secondary research and build the
                                  documents using formulation
                                  tables and full citations

    11       Executive Summary    A single page, concise and
                                  compelling overview of the
                                  venture
    12         Presentation *

                Justify the
              Product/Service

                  Research        Depth, appropriateness and well
                                  cited

               Reasonableness     Makes sense to everyone

                Justify the       It is a very large opportunity in
                Opportunity       the market

             Justify the Price    Provide cited research
                                  supporting production cost,
                                  wholesale price and retail price

             Justify the Target   Develop a deep understanding
                   Market         of the target customer including
                                  primary and secondary cited
                                  sources that results in a
                                  reasonably defined and
                                  quantified target market

                Justify the       Tie together the market
               Marketing Plan     characteristics of the
                                  product/service to the
                                  educational and motivational
                                  mediums for the reasons the
                                  customer buys within a strategic
                                  budget

             Do the Financials    Demonstrated a clear
              tie to the plan?    understanding of how the market
                                  tied to their financials

               Why Will They      Demonstrated a clear
                    Buy?          understanding of their product
                                  and why the customer has a need
                                  or strong desire to buy

               Quality of the     Well rehearsed, not reading from
                Presentation      slides or cards, good contact
                                  with the audience, team effort

              Overheads/Props/    Slides of good quality with
               Product/Demo,      additional props/beta/etc.
                    Etc.

                  Q and A         Responded well to all questions
                                  asked

Assignment                                   Satisfactory

    1             Concept         Self generated high-growth
                                  business model

               Patent Search      Detailed search report from
                                  USPTO.gov along with multiple
                                  internet searches

    2          WOW Statement      Clearly articulate in 3 or fewer
                                  sentences the business model

    3             Company

                  Product         A description of the product or
                Description       service including but not limited
                                  to dimensions, colors,
                                  packaging, production,
                                  warranty, etc.

    4        Industry Analysis    5-10 credible and timely sources
                                  with citations and sourcing
                                  throughout the document
                                  including but not limited to
                                  stage of the industry, trends,
                                  technology, competitors,
                                  outlook, etc.

    5         Market Analysis     Develop a deep understanding
                                  of the retail market including
                                  secondary cited sources with
                                  large market potential

               Target Market      Develop a deep understanding
                                  of the target customer including
                                  primary and secondary cited
                                  sources that results in a defined
                                  and quantified target market

                 Competitor       Create a competitor matrix
                  Analysis        based upon strategic differences
                                  between your venture and the
                                  competitors and defining who
                                  the competitors are

    6          Marketing Plan     Tie together the market
                                  characteristics of the
                                  product/service to the
                                  educational and motivational
                                  mediums for the reasons the
                                  customer buys

              Pricing Strategy    Provide cited research
                                  supporting production cost,
                                  wholesale price or retail price

    7            Technology       Provide a detailed depiction of
                Application       the technology needed to
                                  operate the business

    8         Operations Plan     Provide a detailed and well
                                  researched depiction of the
                                  operational issues associated
                                  with the business including but
                                  not limited to facilities,
                                  equipment, logistics, production

    9             Strategy        Create a paragraph describing
                                  the business model and how the
                                  venture makes money

                   Risks          Evaluate potential risks the
                                  venture faces through secondary
                                  research including but not
                                  limited to sec.gov/edgar filings

    10           Financials       Create the requisite documents
                                  supported by primary and
                                  secondary research and full
                                  citations

    11       Executive Summary    A single page and compelling
                                  overview of the venture

    12         Presentation *

                Justify the
              Product/Service

                  Research        Appropriateness and well cited

               Reasonableness     Makes sense to the market

                Justify the       It is a large opportunity in the
                Opportunity       market

             Justify the Price    Provide cited research
                                  supporting production cost,
                                  wholesale price or retail price

             Justify the Target   Develop a deep understanding
                   Market         of the target customer including
                                  primary and secondary cited
                                  sources that results in a defined
                                  and quantified target market

                Justify the       Tie together the market
               Marketing Plan     characteristics of the
                                  product/service to the
                                  educational and motivational
                                  mediums for the reasons the
                                  customer buys

             Do the Financials    Demonstrated an understanding
              tie to the plan?    of how the market tied to their
                                  financials

               Why Will They      Demonstrated an understanding
                    Buy?          of their product and why the
                                  customer has a desire to buy

               Quality of the     Well rehearsed, not reading from
                Presentation      slides, good contact with the
                                  audience, team effort

              Overheads/Props/    Slides of good quality
               Product/Demo,
                    Etc.

                  Q and A         Responded well to most
                                  questions asked

Assignment                                       Weak

    1             Concept         Self generated business model

               Patent Search      Detailed search report from
                                  USPTO.gov

    2          WOW Statement      Articulate in 3 or fewer sentences
                                  the business model

    3             Company

                  Product         A description of the product or
                Description       service

    4        Industry Analysis    Multiple sources with citations and
                                  sourcing throughout the document
                                  including but not limited to stage of
                                  the industry, trends, technology,
                                  competitors, outlook, etc.

    5         Market Analysis     Develop an understanding of the
                                  retail market including secondary
                                  cited sources

               Target Market      Develop a deep understanding of the
                                  target customer including primary
                                  and secondary cited sources that
                                  results in a defined target market

                 Competitor       Create a competitor matrix and
                  Analysis        define who the competitors are

    6          Marketing Plan     List a series of marketing mediums

              Pricing Strategy    List a production cost, wholesale
                                  price or retail price

    7            Technology       Provide a list of the technology
                Application       needed to operate the business

    8         Operations Plan     Provide a depiction of the
                                  operational issues associated with
                                  the business including but not
                                  limited to facilities, equipment,
                                  logistics, production

    9             Strategy        Create a paragraph describing how
                                  the venture makes money

                   Risks          Evaluate potential risks the venture
                                  faces through secondary research

    10           Financials       Create the requisite documents
                                  supported by secondary research and
                                  full citations

    11       Executive Summary    An overview of the venture

    12         Presentation *

                Justify the
              Product/Service

                  Research        Appropriateness

               Reasonableness     Does not seem to make market sense

                Justify the       It is not a large opportunity
                Opportunity

             Justify the Price    List a production cost, wholesale
                                  price or retail price

             Justify the Target   Develop a deep understanding of the
                   Market         target customer including primary
                                  and secondary cited sources that
                                  results in a defined target market

                Justify the       List a series of marketing mediums
               Marketing Plan

             Do the Financials    Presented their financials
              tie to the plan?

               Why Will They      Suggested the customer has a desire
                    Buy?          to buy

               Quality of the     Not well rehearsed
                Presentation

              Overheads/Props/    Slides
               Product/Demo,
                    Etc.

                  Q and A         Poor overall responses

* see appendix 3

APPENDIX 3 PRESENTATION GRADING

Time:
Names:
Product/Company:
                                          Points   Grade
      Justify the Product/Service
Research                                    5
Reasonableness                              5
Justify the Opportunity                     10
Justify the Price                           5
Justify the Target Market and Marketing     10
Do the Financials tie to the plan?          20
Why Will They Buy?                          5
Quality of the Presentation                 10
Overheads/Props/Product/Demo,Etc.           10
Q and A                                     20
Total                                      100

AUTHOR'S NOTE

A work in progress version of this paper was presented at the 2008 Small Business Institute(r) conference in San Diego, CA.

Joseph R. Bell is an Associate Professor of Entrepreneurship at the University of Arkansas at Little Rock and also serves as the Associate Director for Business Development at BioVentures, the medical and biotechnology incubator and technology transfer office for the University of Arkansas for Medical Sciences. He also serves as an adjunct faculty member at the Bowen School of Law. The author wishes to thank Ildeniz Yayla, MBA candidate for his assistance.

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