Intrapreneur versus Entrepreneur by John Dillman

In determining which business school to attend, I used resources such as Aspen Institute’s Beyond Pinstripes and Net Impact’s annual b-school rankings to narrow down the field. When it came time to make my decision, GW’s involvement with Net Impact and its leadership in weaving ethics, sustainability, and the like into the fabric of the program tipped the balance and here I am today.

After a fast-paced but enjoyable module 1 in which I suffered from the tunnel vision one gets when navigating 6 classes in as many weeks, I was amped to attend the Net Impact Conference in Ann Arbor. Occurring one week after our first set of finals, it presented the perfect opportunity to put academics aside and reconnect with what drew to me to business school in the first place.

I came to GW to become a better problem solver, and the problems I wanted to help solve were the focus of this conference. I set loose goals going in, knowing that the weekend would inspire more questions than provide answers.

Among the many questions swirling through my head when I boarded the plane after a great weekend, there was one that stood out: intrapreneurship or entrepreneurship?

Whatever I end up doing after business school, my primary motivation will be solving problems and helping people. How should I express this through my career? Should I go the CSR route and push for change from within an organization? Or should I heed the advice of Gary Hirshberg (founder and CE-YO of Stonyfield Organic) or Majora Carter (economic consultant and environmental justice advocate) who both make convincing arguments for building from the ground up?

Both paths feature excitement, opportunity, advantages, and disadvantages. With CSR and intrapreneurship, there is the opportunity to change well-established organizations. The size of a Wal-Mart or Coca-Cola is such that any change you make will have a far-reaching impact. You learn from people who have been in business a long time and have a chance to develop into a seasoned professional. This is appealing to someone like me who will re-enter the workforce in 2012 with less than 3 years of professional experience on the books. Furthermore, there is something to be said for the notion that the most effective agents of change are those who understand and have lived the system. Only after a year and change at Ashoka’s Youth Venture was I able to push through effective programs in my area.

With entrepreneurship, you avoid the risk of getting sucked into the belly of a slow-moving organization. You avoid the situation of taking a position in marketing or HR when what you really want is to work on sustainability. With entrepreneurship, it is your ship to steer. You can move the ball forward as fast or as slow as you want to, and apply pressure to incumbents who are not altering their behavior fast enough.

There are downsides to this path as well. There is the risk that you fail completely. Even if you are successful and your organization is doing wonderful things, you may have a hard time achieving the scale needed to make a big impact. Is an hour spent working to increase the success of your start-up better than an hour spent working to make Wal-Mart more socially responsible?

Of course, the choice is not simply between entrepreneurship or intrapreneurship, start-up versus incumbent. There are a variety of options in between – established-mid size organizations or start-ups with a couple of years under their belt.

The purpose of this post is not to endorse one path over the other. Rather, it is to share with you my still evolving thought process on a career in effective change making.

John Dillman Global MBA, 2012

"Sirius XM Radio's interview of Honest Tea's TeaEO" by Eliza Roberts

I had the fortune of attending a live interview at the Sirius XM radio station of the TeaEO of Honest Tea, Seth Goldman. I have always loved Honest Tea as a beverage. My favorite flavor is “Peach Oolalong” “Just a Tad Sweet.” But, Seth's modesty, his passion for using business to bring about positive change, his humor, and his honesty about work/ life balance and the challenges of starting your own company made me love Honest Tea even more.

Seth got the idea to start Honest Tea while sitting in a business class at the Yale School of Management and discussing the beverage business case on Coca-Cola and Pepsi. He realized that there were sweet sodas and watery beverages, but no drinks that were less sweet. After graduating and experimenting in his kitchen in Maryland with thermoses on loan to him and a tea that he said tasted initially like grass, he approached the local Whole foods to tell them about his new concoction.

The next thing he knew, Whole Foods ordered 15,000 bottles as an experiment and Seth and his co-founder, a professor at Yale, had to find a way to manufacture it on a large scale. He and some MBA interns offered samplings at stores throughout the region and by the end of the month it was the best selling tea in all stores. Today, 10 years later, Honest Tea is the best selling beverage within the healthy drinks category and has grown to 60 million in sales. Honest Tea was also the first to offer fair trade tea in 2003 and by March of this year expects all of its teas to be fair trade.

What is his advice to MBA students, or people who want to be just like him? Seth offered two words of wisdom:

1) Do what you really care about. Don’t take a job that you are NOT going to be fired up to go to every day.

2) Once you find what you want to do, go after it like nothing can stop you!

What are his thoughts on Corporate Responsibility? For companies working to implement CSR initiatives, the best approach is not just taking money from high profit margins and distributing it as in-kind donations to a local non-profit, but rather finding a way to make CSR the core of what you do. For Honest Tea, giving back and offering healthy, organic, fair trade beverages to consumers is at the core of what they do. His goal in running Honest Tea is to not just be successful and grow the business, but to try to change the way business operate by demonstrating that organics, healthy foods, and sustainability should be relevant to companies operating within the private sector.

Honest Tea’s corporate culture is all about honesty. The office has absolutely no walls to encourage innovation. There is an experimental kitchen that is filled with random dried fruits shipped in from farmers from all over the world who want to supply to Honest Tea. And my favorite part, the office has a gong. Apparently, the gong is hit whenever the company achieves a sales goal. I love the image of Coca-Cola executives visiting the office upon purchasing 40% of Honest Tea’s shares, yet unable to have a private meeting because of the lack of walls and at the same time trying to make sense of the gong hanging from the office wall and the test kitchen that is the only test kitchen used by Honest Tea to create new products.

What kind of impact will Coca-Cola’s outright purchase of the company within the next year or so have on Honest Tea? Seth explained that he expects some cross-fertilization to take place between the companies. He was invited to attend a sustainability brainstorming session in Atlanta recently and hopes to be able to influence sustainability initiatives taken on by Coca-Cola. The most positive outcome is that Honest Tea will be able to take advantage of Coca-Cola’s distribution network. I will not only be able to purchase my Peach Oolalong at the stores in the DC metro area, but at truck stops, convenience stores, and everywhere else where Coca-Cola delivers at present. With Honest Tea’s new distribution capabilities, Honest Tea will be able to increase its sales and in turn increase purchases from fair trade suppliers, thus supporting the fair trade and organics movement throughout the US and the rest of the world. Furthermore, more US consumers will have an option to by a healthier alternative to soda and purchase the drink at a lower cost than other organic beverages.

But, what will happen to Honest Tea in the coming years? Will Honest Tea be able to maintain its corporate culture (and the gong in the Bethesda, Maryland office)? I hope so. The key now is for Honest Tea to demonstrate to Coca-Cola that the culture, employees and the way it operates today brings value to the company and to the delicious tea products that end up on the shelves of retail stores today.

Eliza Roberts Globa MBA, 2011

"The Fossil Fuel Alternative Energy Imperative Chapter 1" by Andrew Seal

Algeria, Angola, Canada, Colombia, Iraq, Mexico, Nigeria, Russia, Saudi Arabia, Venezuela. What do these countries have in common?

The list includes several countries that are described by the US State Department as having “long-term, protracted conditions that make a country dangerous or unstable.” The list includes countries that either languish at the bottom of or don’t even qualify for the Human Development Index. But most of all, this list constitutes the top 10 (83%) of all U.S. crude oil imports.

Oil is a destabilizing, and strategic, natural resource. It both props up totalitarian regimes and shapes U.S. foreign policy. The Strait of Hormuz is a perfect example of this. Located between Oman and Iran, the Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. According to the US Department of Energy’s Energy Information Administration “Hormuz is the world's most important oil chokepoint due to its daily oil flow of … roughly 40 percent of all seaborne traded oil.” Stationed immediately nearby is the US Navy’s 5th Fleet, which also serves as the headquarters of the Naval Component Command of US CENTCOM and is responsible for all naval combat operations in the Mid-East region.

While examples of this kind abound, the US has done little to wean itself from the Oligopolistic oil market, which is overwhelmingly dominated by OPEC (over half the above countries in the top 10 are OPEC member nations.) The strategic importance of and our addiction to this natural resource supports oppressive regimes and sends our fighting men and women to areas of the world they would not need be otherwise. We need to change this.

Start by walking and riding a bike, or use public transit whenever possible. If personal vehicle use is unavoidable in the short term, ensure that you carpool as often as possible, maintain your vehicle and properly inflate and rotate your tires. Electric vehicles are now becoming widely available for purchase at a variety of dealerships. As the world’s leading consumer of oil (approximately 20million barrels a day), we have a tremendous opportunity to create change.

Shifting the oil demand curve will lower prices and we can use that change in price to subsidize electronic vehicle and renewable energy infrastructure that will further foster decreased fuel prices and increase our leverage over the OPEC cartel while fostering the growth of American green jobs.

Decreasing demand for oil is the right thing to do and it’s the smart thing to do.

Sources:

http://tonto.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

http://www.eia.doe.gov/cabs/world_oil_transit_chokepoints/Hormuz.html

http://www.eia.doe.gov/country/index.cfm?view=consumption

Andrew Seal Global MBA, 2012