Corporate Innovation and Entrepreneurship Report for The Agency

This report assesses the level of corporate innovation and entrepreneurship displayed by 'The Agency,' a successful global advertising corporation. It examines the organization's entrepreneurial architecture, leadership, culture, and readiness for change. The report draws on theoretical frameworks related to organizational architecture, entrepreneurial leadership, and creative culture, citing various research studies. The findings indicate that the current entrepreneurial architecture has shortcomings that impede idea generation in certain departments, leading to recommendations for improved teamwork, an ambidextrous leadership strategy, and a cultural shift to support innovation. The report also emphasizes the importance of a collaborative vision to ensure buy-in during the change process. The report concludes with recommendations to foster a more cohesive and innovative environment within the organization.

Assignment 2
Submission Date: Friday January 14th, 2022.
Word Count: 3945 words
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Executive Summary
This report was developed to examine the level of corporate innovation and entrepreneurship that was displayed
by a successful global advertising corporation called ‘The Agency” that is responsible for planning and creating
advertisements for clients and, in some cases, provides consulting advice on marketing and branding.
Theoretical patches relevant to organisational architecture – entrepreneurial leadership, climate, and culture –
and organizational change readiness that compared various suitable frameworks based on research were
produced.
Entrepreneurial leadership study cites (Schein 1990) as well as Ogbonna & Harris (2000), Valentino (2004),
(Burns 2015) and (2020), Amabile (2016) as well as Smircich (1983), Valentino (2003), (Burns 2015), and
(2020), Amabile (2016). (Zien and Buckler 2004). Amablie's Componential Theory of Creativity and
Innovation, (Ehrhart, Schneider, and Macey, 2014, p. 69), (Schein, 2010, p. 18), (Griffin and Moorhead 2005),
creative idea generation, and 4 Creative Culture Principles were the theoretical focus of research on the climate
and culture for creativity and innovation (Andriopoulos and Gotsi 2002).
Analysis of the components that lead to 'The Agency's entrepreneurial intensity' was undertaken after each
theoretical patch. According to the findings of this study, the current entrepreneurial architecture is lacking and
inhibits the development of new ideas in certain departments. To tackle these problems, it is recommended that
all departments work together to establish a more cohesive team. This included the support for organizational
creativity and innovation in all of the company's departments, with no exception of any one department, namely
the creatives, where the unfair bias problem was more apparent.
An ambidextrous strategy in leadership was proposed since it would stimulate more entrepreneurial energy
among all departments of 'The Agency.' There was also a call for a change in organizational environment and
culture to better support and liberate all employees to be innovative and creative while also placing a higher
value on better teamwork. Final suggestion: to increase buy-in from all partners during the readiness for change
process: a clearly stated vision produced through collaboration with every department.
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Table of Contents
Scenario 1
1.0 Introduction........................................................................................................................................................4
2.0 Overview of Company ......................................................................................................................................5
3.0 Theoretical Framework …………………………………................................................................................5
3.1 Assessing the strength of the Entrepreneurial Architecture at ‘The Agency’……….......................................6
3.2 An examination of ‘The Agency’ Leadership and Management …………………………………….............6
3.3 An examination of ‘The Agency” Culture and Climate: ………….................................................................8
3.4 Culture at ‘The Agency’: …………………………………………………………..........................................8
3.5 Work Climate at ‘The Agency’: ……………….……………………………………………………...……...9
3.6 An examination of ‘The Agency’ Readiness for Change: ……………………………………………...…...10
3.7 Assessing the organization’s readiness for change: …………………………………………………………10
3.8 Research a Readiness for Change Assessment tool: ……………………………………………………. ….12
4.0 Conclusion ......................................................................................................................................................12
4.1 Recommendation …………………………………………………………………………………………....13
Reference List........................................................................................................................................................15
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Introduction
While creativity aids economic progress, entrepreneurship is the main driver. Entrepreneurs must be innovative
to establish and run a successful business. Owners might benefit from fresh ideas developed by a creative
organization. While entrepreneurship is the main driver of economic growth, creativity is equally vital.
Entrepreneurs must be able to think critically and creatively to come up with unique concepts. Thinking beyond
the box helps the organization to come up with innovative ideas that benefit the shareholders.
Modernization of existing services or products is an example of innovation. Innovation may help a company
adapt to shifting market trends and make money. Introducing fresh ideas can improve a company's success in its
area.
To thrive as an entrepreneur, you must be able to create a unique product or service. Developing an idea or
visualizing an idea has become more linked to business. Innovation is the application of creativity, not the
product of it. Creativity manifests as a new product or service. Entrepreneurs use the term "innovation" to
describe creating new ideas, processes, or products, or improving existing ones.
To be creative, a person must be self-aware and self-motivated.
Organizational creativity refers to ideas or innovations attributed to a group of employees employed by the
same company. It might also be a team working on a new product.
In other words, while all organizational innovation stems from individual creativity, not all individual creativity
is organizational. But they're not identical.
This study will assess "The Agency's" support for creativity, innovation, and entrepreneurship.
An in-depth critical examination of organizational creativity will be presented in the next sections of this paper,
followed by the conclusion and suggestions.
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Overview of Company
For the purposes of this case, we will look at one of Australia's most successful international advertising
businesses (The Agency), which is a subsidiary of one of the world's largest advertising agencies and which
frequently wins significant advertising awards both locally and internationally. Aspects of the Agency's services
include marketing and branding consulting, which involves the creation of advertising campaigns for its clients.
Organizational functions include Planning, Accounting, Design, and Production. The five functional divisions
of the corporation are as follows: The planning department is the first of these divisions. Members of the
management team, including representatives from each of these tasks, work closely with the CEO (CEO). Each
of these departments is working toward a certain goal.
Theoretical Frameworks
Corporate entrepreneurship (CE) describes the entrepreneurial actions of established mid-sized and large
businesses (Stopford and Baden-Fuller, 1994). These terms have acquired prominence in recent years (Pinchot,
1985; Morris, Kuratko, and Covin, 2011). Corporate entrepreneurship brings the most value when it is adopted
as a long-term strategy for competitive advantage. A wide range of approaches and processes are used by firms
to foster their entrepreneurial spirit. Companies may get a competitive advantage by increasing their
entrepreneurial spirit and agility.
Intense entrepreneurship increases the scope and frequency of entrepreneurial behaviour in a company (Burns,
2013). Organizational architecture is the infrastructure necessary to implement a company's goals. Structure,
tactics, management, and organizational culture are covered (Burns, 2013). Individuals' capacity to be creative
is dependent on how they interact with their environment and their peers, according to an interactionist
approach on creativity (Woodman and Schoenfeldt 1990). The componential model of creativity defines
innovation as the creation of ideas or outcomes that are both original and fit to a certain goal (Amabile, 2012).
Organizational creativity is the process of collaborating to develop a new product, service, concept, approach,
or process. (Woodman and Schoenfeldt's 1989) interactionist model of creative activity serves as a theoretical
foundation. This paradigm and associated studies on creative behaviour and organizational innovation may be
used to conceptualize organizational creativity.
Creative thinking is a systemic process that involves three elements: a domain of knowledge (the cultural
context), an individual who understands and uses that knowledge to produce novel change, and an area (the
social context) that knows the domain and uses that knowledge to judge whether an individual's innovation is
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worthy of further consideration. (24.) The three components of domain, field, and person are equally important
in fostering creativity, according to (Csikszentmihalyi 1997, p. 7).
The investment hypothesis of creativity (Sternberg & Lubart, 1991, 1995) assumes that creative people "buy
low and sell high" in the realm of ideas (see also Rubenson & Runco, 1992, for the use of concepts from
economic theory). Buying low is preferable than buying expensive. These ideas are often viewed with suspicion
when initially proposed. By persevering and selling high despite objections, the creative person moves on to the
next new or unpopular idea.
It was evident from the previous debate that there was agreement among the many writers about what drives
organizational creativity, which included Culture and Climate, Leadership and Management, as well as Change
Management, which would be the primary focus of the study for this report.
Assessing the strength of the Entrepreneurial Architecture at ‘The Agency’:
The "entrepreneurial intensity" of a company may be quantified. (Stevenson, Roberts, and Grousbeck 1989)
define entrepreneurship as "the act of creating value by combining resources to exploit an opportunity." The
entrepreneurial attitude of a company is seen to be a major factor in its success. Entrepreneurial intensity (EI) is
a measure of a company's entrepreneurship volume. “WIP is not the sole tool for collaboration. The mandatory
workflow is carefully structured to allow individuals to work alone while also bringing groups together at
certain points during the process. The Agency's strategy to promoting EI had little impact on day-to-day
operations. However, ‘The Agency's' acts cited here “The Creatives admit that when they initially hear a brief,
they ‘zone out' and start brainstorming ideas. Instead of being punished, the behaviours are tolerated.”
Continuing the creative rebel acts may appear to harm the organization's EI. People at ‘The Agency' emulate
individual creativity since they are intrinsically motivated and given the situations individuals express the
knowledge and skills to drive individual creativity.
An examination of ‘The Agency’ Leadership and Management
Effective leadership is necessary in any size or sector. Strong leaders are required for efficient operations.
Motivating people to achieve common aims. Leadership requires three facets. Leading has societal impact. It
lacks a leader or followers. Second, great leadership inspires others. Leadership, like any formal authorities, is
elective.
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Leadership produces thoughtful, goal-oriented followers who are disciplined. Many, but not all, leadership
studies are workplace-based.
When creating ideas and strategies, strategic leaders must clearly address company culture. In a VUCA world,
will the culture stifle or encourage organizational and behavioral changes, outcomes, and performance? Climate
describes an organization's personality. A person's culture is described as a group/subculture or organization's
collective beliefs. Strategic leaders may influence corporate environment and culture. Changing corporate
culture takes time and commitment. Culture is a key short- and long-term success factor. Strategic leaders must
understand and appreciate their organizations' culture. Change culture should be known when and how.
There is a lot of study on top-level management and culture. Others feel that leaders are the product of their
culture, as described by (Schein 1990). (Hofstede, 2011; Ogbonna & Harris, 2000; Smircich, 1983). Valentino
(2004) claimed that managers are key in achieving cultural change. Middle managers also require role models
to assist change their businesses' culture (Valentino, 2004).
Best entrepreneurial leaders know how to experiment, learn, and iterate in the face of uncertainty. It's easy to
see the contrast between this leadership style and the more typical "analyze, then act" method. While a
traditional leader may excel at copying an image, an entrepreneurial leader may start fitting the parts together
with no picture at all.
Within ‘The Agency', there were clear signs of support and impediments for entrepreneurs, such as: “Work in
progress meetings - Aim is constantly noted and highly supported (internally and externally)– TO WIN
AWARDS! TOP AGENCY!” in line with (Burns 2015), Supportive leadership and Emotionally intelligent as
shown by Burns (2020) and Amabile (2016) this line extract from the case study to support these theories are
“Creative Director is supportive – evaluation of raw ideas”, The sessions in the common area with all
employees required to attend, as stated by (Zien and Buckler 2004).
Regarding the leadership's support for ‘The Agency,' obstacles were seen. These: The Creatives, unlike the
other teams, have a flat organizational structure (Amabile 1993). That the creatives refuse to participate in
crucial meetings where they are not leaders, or that they observe all weekly meetings. It's logical to assume that
politics is at play. This aligns with the Interactionist Model (Woodman et al 1993) for which the organization
was recognized. Woodman thinks incentives are essential to a company's creative process. Finally, only the
Agency's Creatives got windows for natural light. (Westfall 2001) contends that ignoring this will eventually
impair employee health. The employees' fundamental grasp of this notion may influence their actions in
unexpected ways (Westfall 2001).
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Overall given the extent of the analyses into ‘The Agency’ it was detected that there were clear evidence of
entrepreneurial leadership taking into consideration both the support and barriers seen by the leadership of ‘The
Agency”.
An examination of ‘The Agency” Culture and Climate:
Employees' behavior is influenced by an organization's culture and surroundings. Goals, leadership promises,
and staff motivation all reflect culture and environment. The culture and atmosphere of a company may impact
how employees accept and support new projects and practices.
In the workplace, "organizational culture" refers to common expectations and norms. The public sees "work
done" in this way. The atmosphere of a company shows how workers perceive their workplace's impact on their
health. This is how it feels to work at the agency (e.g., supportive, stressful).
"Organizational climate" is defined as "the shared meaning organizational members attach to events as well as
behaviours seen to be rewarded and promoted" (Ehrhart, Schneider, & Macey, 2014, p. 69). "A pattern of
shared basic assumptions learned by [an organization] as it solved its problems of external adaptation and
internal integration," one definition says (Schein, 2010, p. 18).
Culture at ‘The Agency’:
Unified organizational culture is characterized as a collection of expressed informal values. Employees utilize
an organization's culture to judge whether acts are acceptable (Griffin and Moorhead 2005). The collective
mental training that separates members of one group or social category from members of another. Regardless of
perspective, shared ideals, beliefs, and expectations within a group or organization create sense and inspire
innovation. "A shared fundamental assumption pattern developed by an organization as it handled external
adaption and internal integration difficulties," states one description (Schein, 2010, p. 18).
What is the role of culture in promoting creativity and innovation in the workplace? (Dawson 2014 – pp. 356-
365) Organizational culture (shared values, attitudes, and behavioural norms) is critical to encouraging the
invention and implementation of effective new ideas. ' 2. Employees eventually learn which behaviors are
appropriate through official and informal socialization procedures. Because of this, firms with innovative
cultures are more likely to place a high value on and reward the adoption and execution of new ideas.
The Agency's culture both encouraged and inhibited creativity. Culture and climate support for creativity and
innovation: Focus on creative idea generation (Tushman and O'Reilly, 2002) reducing barriers to ideas
(windows, extensive view of the urban landscape). Gaming is allowed. The 'The Agency' Mechanism supports
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the 4 Creative Culture Principles (Andriopoulos and Gotsi 2002). We meet weekly. The management team
evaluates the CEO and division heads. “The workplace is warm and trusting.” Thomas & O'Reilly Forewarning
of Monkey Minds (Attong and Metz, 2019). In this casual debate, ideas will "bounce." NO PRESSURE TO
CREATE BEFORE SUBMITTING TO "Where much of the magic happens," say the Creatives.
These supports had the following barriers: Burns (2015), Entrepreneurial Mindset It's hard to make relationships
when the organizational structure itself shows no support for it. Doing the same thing in the same way. Don't
repair what isn't broken! "Team" is often used to describe several work roles. Due to "the personal dimension of
the creative endeavor from the Creatives' views," Management does not encourage a collaborative approach
(Andriopoulous and Gotsi 2002). Suits have review meetings that Creatives avoid. That is, they get along well
with department leaders but not with the rest of the staff (Khan et al 2016).
All things considered and considering the support and hurdles identified by the leadership of "The Agency," it
was discovered that there was clear evidence for cultural creative innovation inside "The Agency". Cultural
obstacles outnumber facilitators, as has been documented.
Work Climate at ‘The Agency’:
The "repeated patterns of behavior, attitudes, and sentiments that characterize life in the organization" are called
"climate" (Isaksen, 2007, p.4). As an element of the visible culture, the climate is "different from culture in that
it is more readily apparent in the workplace and more accessible to development initiatives" (McNabb & Sepic,
1995, pp. 396-385). By Amabile and others: Creativity Inspiring (996) Isaksen (2007), Ekvall (1996), and
Burns (1996) all discuss the importance of openness and trust (2020). There are both supports and barriers in
‘The Agency’ when it comes to climate.
The corporation supports CPS initiatives. the status and recognition that come with winning an award and being
acknowledged for one's artistic endeavours Supervisory encouragement Open communication between
supervisors ('suits', Creative Director) and creatives Purposefulness: Working on projects with the creative
director and team. The Work Group Assists You Artists are paired up (one for words, one for visuals) The
software allows students to work alone and in groups. 'Suits' provide unstructured critique during informal
evaluations, allowing creatives to feel at ease, according to Ekvall (1996), Burns (2020), Dawson, and
Andriopoulos (2007, 1996, and 2020). We want you and your teammates to succeed (Amabile, 1996) Idea Time
is set aside for creatives to generate fresh ideas and possibilities. Supportive leadership is defined as
encouraging and promoting fresh ideas. A high degree of trust (no fear environment) is favorable to creative
outputs after the first idea generation phase. Positive interpersonal contact reveals a feeling of power balance
inside the agency.
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Given ‘The Agency's' climate support, these are some of its roadblocks: 10 climate conflict – emotional strain
( Ekvall 1996) Despite the fact that the workplace is mostly open plan, the Suits work area is smaller, with
workstations closer together and less natural light than the Creatives work area. The Creatives' area, on the other
hand, is totally glass and has a city view. The rest of the organization perceives a "wall" between the Design and
Creative divisions.
Secondly climate for creativity and innovation according to (Amarbile, Lsaken) the internal environment of
'The Agency,' with its functional silos, established hierarchies, and status inequities, would not normally be
considered as conducive to innovation, creativity, and transformation.
Lastly climate for creativity and innovation – workgroup support by (Amarbile, Lsaken) the Creatives admit
that when they initially hear a brief, they "zone off" and start formulating ideas. This lack of concentration is not
only accepted, but often rewarded. Creatives are given room and freedom to experiment with new ideas and
possibilities once meetings have concluded. This time is designated for "idea generation."
There is convincing evidence that 'The Agency' is a place where climate creative innovation may thrive,
considering both the support and hurdles that 'The Agency's' executives observe. The problem is that there are
more obstacles than facilitators when it comes to tackling climate change.
An examination of ‘The Agency’ Readiness for Change:
Adaptability is a broad term. The common impression that an organization can adapt (change commitment) and
the ability to do so (commitment) (change efficacy). The degree to which an organization's members appreciate
and favorably appraise work needs, resource availability, and situational factors impacts its change readiness.
Members of high-readiness organizations are more inclined to initiate change, work more, endure, and
cooperate. So, the implementation procedure is faster.
(Cetinkaya et al. 2019) looked at the relationship between organizational changes and competitive advantages to
determine if size mattered. In a research by (Weeks et al 2004). Timmor and Zif2010 looked into it. Multi-
dimensional change readiness (CR) is described as a company's ability to perceive environmental opportunities
and risks, plan for measures, and implement new levels of action. This study's theoretical framework is
Strategic Management Theory (Goodstein et al., 1992). RBV Theory is used at the medium level of theory
(Wernerfelt, 1984). Organizational change readiness is the applied theory (Elias, 2009; Holt et al., 1993).
Assessing the organization’s readiness for change:
Planned Approach – Force Field Analysis (Lewin 1947,1951) recommends that it is Better to reduce the forces
that prevent change rather than increase the forces to push change. Example to minimize workers resistance,
Employees should participate in planning the proposed change. In supporting this theory, it is seen within ‘The
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Agency’ that the Production team who sometimes referred to as the Factory, a term that is indicative of how
they feel about what they do take the ideas that have been generated by the Creatives and signed off by the
clients and then work on producing the advertisements, ensuring they are aligned with the desired media.
The Planned Model of Organizational Change requires a mix of management and leadership skills to properly
implement changes (Kotter 1995). The Agency's organizational structure is divided into five parts: planning,
accounts, creative, design, and production. The management team includes the CEO and department heads
(CEO). Each unit has a focus. Discussion of team structure and hierarchy allows management and leadership to
demonstrate innervational change success. This shows the leadership's determination to work with all parties.
At ‘The Agency’ the working week starts with a high profile and important Work-in-Progress (WIP) session.
This session is held in the common area and all employees are expected to attend. This allows for effective
communication channels, transparent and capable of agile issue to be brought to management attention.
At ‘The Agency’ one can say there is a willingness to change the cultural incentives to drive innovation within
some departments with a clear example being after the discussion, time is set aside for ‘idea generation', giving
Creatives room and freedom for new ideas and possibilities. During this phase of inquiry, creatives may work
outside the workplace or employ unconventional tactics such as delighting in experiences (e.g., consuming the
products they need to advertise, immersing themselves in a completely different environment such as going to a
movie or playing an online game). This also leads us to say that the organization historically embraced change
with some departments by changes being managed effectively in alignment with (Kotters Planned Change
Management Processes)
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Research a Readiness for Change Assessment tool:
With (Kurt Lewin) planned approach to change into consideration the
There is convincing evidence that 'The Agency' has not rolled out a change management in the past. If the
change management barriers are not resolved in the necessary departments the organization would have
struggles managing their high award-winning standards and continued innovation.
Conclusion
The entrepreneurial spirit of a company is critical to its long-term success. Looking at a company's
entrepreneurial intensity can help determine its entrepreneurial volume (EI). ‘To show off its EI, the agency
provides a lot of support. Although we emphasize "The Agency's" support systems, the company nonetheless
faces a number of obstacles. There is a hurdle in the form of their inability to effectively foster and sustain
organizational creativity and innovation across all departments. When compared to other departments, it was
clear that the creatives were given preferential treatment and were constantly encouraged to improve their
creative output. 'The Agency' also suffered from a lack of environment and culture that hindered its ability to
foster organizational creativity and innovation. One of the reasons for this is that 'The Agency's' workplaces are
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