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The challenge of sustaining growth seems to be getting steeper and steeper. This Masterclass provides context for two recent books that have valuable insights to offer to company leaders and strategists on how to build resilience and sustain growth in increasingly dynamic and uncertain global competitive markets.

In The Founder’s Mentality: How to Overcome the Predictable Crises of Growth (2016), well-known Bain strategy consultants, Chris Zook and James Allen offer a strategy for consciously embedding “the founder’s mentality” into the culture of young firms as they scale or rediscovering it in mature firms that might be stalling and losing their way. For strategy and innovation guru, Vijay Govindarajan, sustaining growth increasingly requires being able to pursue simultaneously two very different types of activity and mindset – exploiting a legacy business while exploring new business opportunities. He offers a very practical framework for approaching this challenge in The Three Box Solution: A Strategy for Leading Innovation.

The “founder’s mentality” refers to “a collection of specific behaviors and attitudes best exemplified by the traits of great founders that if properly cultivated in the rest of the organization, can lead more reliably to sustainable growth.” Some young firms fail to establish a founder’s mentality from the outset, while many mature founder-led companies come to lose their sense of insurgency and other key founder’s mentality traits over time. “Just about every company, at any stage in its life, can benefit from the attitudes and behaviors that make up the founder’s mentality.”

Govindarajan argues that “asking what assumptions must be true for this idea to be highly profitable” and testing the most critical of these “as early and as inexpensively as possible” is ‘the best way to reveal an ill-conceived project.

The two books, taken together, provide a wealth of insight for leaders seeking to diagnose their firm’s growth problems and looking for potential solutions for reviving innovation and growth.

The objective of this study was to explore the main factors influencing the development of strategy in small firms. Among its contributions, the study found that strategy was personality‐driven and crisis‐driven. The study identified two main types of entrepreneurs: the pragmatist and the charismatic entrepreneur, and highlighted how the risk‐taking capacities of some entrepreneurs changed over time. The study suggests that the experience of crisis gave rise to a more rational, planned approach to the strategy‐making process.

This case is particularly applicable for use in courses on entrepreneurship, people management, and business strategy. It is intended to give students an overview of a succession planning strategy, and provide insight into the particular challenges facing founders of small businesses as they identify and prepare a successor for the most senior management role. Given the position of Closed Loop as an early mover technology firm in the insurance industry, this case also explores the strategic business considerations. The case therefore offers students detailed, authentic, and practical lessons on leadership through the personal experiences of a founder-CEO in a high performing organisation.

This case is appropriate for students enrolled in postgraduate programmes such as a Master of Business Administration (MBA) and Executive Education programmes. Although the case learnings are transferrable to more general leadership and change management studies, this case will be particularly useful to students with interests in entrepreneurship, leadership in tech startups, and succession planning.

This case tells the story of a small business’ succession plan journey in two parts. Closed Loop is a small insurance software company that is transitioning from a founder-run startup to manager-run company. Case A follows the 55-year-old founder Alex Martin as he performs a measured succession planning analysis that eventually leads him to promote from within the company. Neevan Chattry is the 33-year-old head of business development who has been with the company for ten years and shows promise as a rising leader. Over the course of 18 months, Alex and Neevan embark on a structured preparation and handover process. The case ends in June 2015 with Neevan taking over as CEO and Alex stepping into the role of board chairperson. Case B picks up two years later when Neevan unexpectedly announces that he is resigning as CEO, leaving Closed Loop in a difficult position. In this case, Alex confronts the mistakes he made over the last three years, both during succession planning and Neevan’s tenure as CEO, as well as how digital disruption in the insurance industry affected the business strategy over this period. The case ends with Alex resuming the role of CEO to lead Closed Loop in a reinvention process. Students are left to analyse the decisions taken by the different leaders and how Closed Loop will fair in the future under Alex’s leadership.

Identify the key components of a strong succession plan, including a careful selection process, mentorship of the successor, communication of the change to internal and external stakeholders, and the withdrawal of the outgoing leader; explore the organisational transitions that companies naturally undergo as they grow and enter different phases of operation and the implications of that change for leadership; discuss the compatibility of different leadership traits, styles, and mindsets with the strategic objectives of the company at different points in time; and provide suggestions and recommendations to owners contemplating succession planning in their organisations.

Teaching notes are available for educators only.

CSS 6: Human Resource Management.

This paper describes the case of how the Danish beer manufacturer, Carlsberg, developed the Green Fiber Bottle as part of its sustainability program through an open innovation approach in collaboration with complementary partners. It thereby illustrates how a grand challenge associated with sustainability can be effectively addressed through open innovation and reveals the opportunities and challenges that emerge in that context.

The paper summarizes some key elements of the case and, in particular, discusses some of the lessons learned, which can be further explored in future research, practice, and policy.

The case suggests a number of key issues that are relevant when attempting to address grand challenges, in general, and sustainability in the food and beverage (F&B) industry, in particular, namely: leveraging open innovation in the face of sustainability as a grand challenge; sustainability beyond a solid business case; opportunities and challenges in the face of new business models; the importance of early wins for addressing societal challenges for signals and scaling; and the importance of the Nordic context and long-term vision.

The case describes a recent (and to some extent still ongoing) initiative of how a particular F&B company has explored new approaches to developing its sustainability program. Therefore, it highlights some of the unique characteristics of this case. This paper also lays the groundwork for the establishment of “Sustainable Open Innovation” as a domain in its own right.

The recognition of opportunities for sustainable development is considered to be an essential part of sustainable entrepreneurship, but studies that address this phenomenon are scarce. A conceptual model which aims to explain the factors that lead to the recognition of sustainable opportunities was proposed by Patzelt and Shepherd (2011), but published research that tests this model empirically is limited. The purpose of this paper is to contribute to the sustainable entrepreneurship literature by empirically exploring Patzelt and Shepherd’s conceptual model in order to shed light on how sustainable entrepreneurs recognize opportunities for sustainable businesses in practice.

This paper adopts a qualitative research approach to address the aims of the study. In-depth semi-structured interviews were carried out with eight sustainable entrepreneurs based in Berlin. The data were analyzed by means of thematic analysis.

The findings indicate that sustainable entrepreneurs are influenced in their identification of sustainable opportunities by their knowledge of natural and communal environments, by their motivation to develop gains for themselves and others, and by entrepreneurial knowledge. These findings largely support the model proposed by Patzelt and Shepherd (2011). Furthermore, they extend this model by shedding light on some of the factors that comprise its components, as this study found that spending time abroad and socialization enhance entrepreneurs’ knowledge of natural and communal environments; a desire to be self-employed, aspects of one’s personality and one’s personal circumstances are sources of motivation, while prior jobs and prior projects create entrepreneurial knowledge.

Only two other studies have empirically tested Patzelt and Shepherd’s (2011) model, and these have led to disparate results. The first was conducted by Choongo et al. (2016), who did not find any evidence to support this model. The second was carried out by Muñoz and Dimov (2017), who addressed the model partially. This paper therefore makes four major contributions. First, it is the first to offer preliminary empirical support for each component of Patzelt and Shepherd’s (2011) conceptual model. Second, it extends their model by identifying some of the factors comprising its components. Third, it reflects on possible reasons why extant research has led to disparate findings. Fourth, it proposes avenues of research to resolve the unanswered questions arising from these studies. This paper therefore makes a contribution to the literature on sustainable entrepreneurship and serves as a stepping stone for further theory development and empirical research on sustainable opportunity recognition.

Practitioners can learn much about how a CEO can generate and sustain business agility from examining the role of Jeff Bezos, the CEO of Amazon—arguably the world’s most-agile large organization.

Amazon demonstrates mastery of strategic agility by having successfully shifted Amazon into a whole series of new businesses on a massive scale.

As Amazon acquires new skills, it doesn’t just become more proficient in its own business: it turns these into newly-created capabilities into new businesses.”

For Bezos, the medium-term road map for the future is ‘pretty much all that he works on, delegating the day-to-day business operations to others.’ His job is all about long-term thinking.

This article examines Amazon’s remarkable record of continuous innovation in the light of its Agile mindset. The practices will be illuminating to senior executives seeking to promote an innovation-focused culture in their organizations.