Coach

Handbook
Version 1, 24/11/2014





PROJECT CoachCom2020 a coaching community enhancing impact of the H2020 SME Instrument
Coordination and Support Action (H2020-635518)
1-SEP-2014 to 30-AUG-2016

RESPONSIBLE Christoph Meier, platinn (CH)

CONTRIBUTORS Caroline Gray-Stephens, Scottish Enterprise (UK)
Morten Kroeger, Innovayt (DK)
Stephanie Pellet, platinn (CH)
Arvydas Sutkus, Lithuanian Innovation Centre (LT)
George Tsekouras, University of Brighton (UK)
Andreas Wolf, Innovayt (DK)

Jasper Hemmes, EASME H2020 SME (EC)
Pierre Roubaud, EASME H2020 SME (EC)







The EU Project CoachCom2020 - a coaching community enhancing impact of the H2020 SME Instrument"
(H2020-635518) has been mandated by the European Commission to develop the framework for the business
coaching offered to the beneficiaries of the H2020 SME Instrument. The project consortium consists of:
Innovayt SA (DK) (Coordinator), Platinn - Association Plateforme Pour LInnovation (CH), Scottish Enterprise
(UK), Lithuanian Innovation Centre (LT), TII - Association Europeenne Pour le Transfert des Technologies (LU),
CENTRIM at the University of Brighton (UK), Oppidoc SA (FR).

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Table of content

1. Coaching mission
2. Coaching principles
3. Coaching services
4. Competence grid for self-evaluation of coaches
5. Template for establishing coaching plans
6. Attachment 1: Business innovation system
7. Attachment 2: Life cycle model
8. Attachment 3: "Subject" or "object"?

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1. Coaching mission

The business innovation coaching mission is to empower SMEs in their efforts and
challenges towards successful commercialisation of their innovation. This goes hand in hand
with the reinforcement of the companys capability in alignment with the changing
requirements in the different life cycle stages. This includes aspects such as strategy,
organisation, management, financing, resource development etc.

2. Coaching principles

The coaching approach should respect the two following key principles:

Need focused and systemic: Coaching services should be demand driven addressing the
business bottlenecks. The Key Account Manager (KAM) is in charge of the organisation of
the coaching scheme and is responsible for the SMEs needs analysis. He/she sets the
coaching context (definition of the critical development path within the life cycle model), and
he/she sets the coaching priorities (related challenges and coaching needs). A coach should
make sure that his/her competence profile fits to these requirements. The coach should also
look to the consistency of choices and decisions with regards to the business innovation
system as well as with regards to internal and external stakeholders. As an example,
focusing on the technical demonstrator without getting the target market segment(s) actively
addressed, may be a fast track for technical objectives, but it will not help to lower the entry
barriers to potential customers. This is an example of short-term focus with a negative
impact on long-term objectives. Since business systems operate under dynamic and
unpredictable conditions, all choices include the risk of having a negative impact on other
business areas or future success factors. The interaction between the innovation project
level (the so called object approach) and the corporate level (subject approach) is
another critical concern in the business innovation process. Insufficient absorptive capacity
of the firm is known as a major risk factor to successful exploitation. Thus, a coach should
not only solve addressed problems, but he should also bring in a system view, making sure
that the SME includes this more complex reasoning in its decision making process.

SME adapted: SMEs are managed by people who want to take their own decisions, based
on rational arguments and a clear logic. This helps explain the aversion of small business
entrepreneurs against consultancy or mentoring practices which push external solutions to
the company. A key element of coaching is to make transparent to the SME the reasoning
frame for decision-making. A first requirement is to understand the context of the SME
(position in the business life cycle, business context, needs etc.). Only on this basis, a
constructive dialogue between SME management and coach can be initiated. During this
process, the coach ideally brings in explicit knowhow for problem solving, such as
methodologies, tools, models and examples. The more this knowhow is assimilated by the
SME (learning impact), the higher will be the chances for actions by the company. This
symbiotic relationship between solving and learning is a key success factor for coaching to
create a lasting impact on the business. The coaching process may be understood as an
iterative approach following some generic steps:

Understand the context and the challenges of the SME, and articulate it in a visual and
clear framework. The SME needs to be assured that the coach is in its shoes and not
vice versa. Identify the cornerstones of the innovation venture and assure that related
assumptions (e.g. freedom to operate) are not infringed and set logical priorities for the
joint working plan.

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Generate solving options in interaction with the management. Make reasoning explicit
by using modelling techniques, methodologies, tools and examples. Go back to the first
step if it turns out that the companys context is not as clear as it should be.
Evaluate the generated options by ensuring consistency with the overall business
system (project and corporate) and by taking into account the stage of the business
lifetime and the planned pathway for the business evolution over time (e.g. direct sales
may be appropriate in a first development stage). The choices should be made by the
SMEs management on a rational and transparent basis. Go back to the first two steps,
if needed. Prepare the implementation plan including the definition of potential benefits
and the assessment of potential risks.
Implement the planned actions by providing appropriate support to the company
management in forms of contacts (e.g. with business partners, universities etc.),
handover of methods and tools, and by sharing personal experience. Manage the
implementation process by setting clear milestones. If new evidence arises during the
implementation process shedding doubt on the chosen options, the coaching process
will have to go back to earlier stages.
Capture the full value of the executed actions and assess related risks. Check
together with the management if the results are compelling. Move to a new coaching
cycle in step 1. If the result is too critical for the company (e.g. IP issues, management
capability, negative market evidence) or if the coaching process is completed, formally
close the coaching process.

Figure 1: Basic principles of business innovation coaching

Further reading: Tidd, J., & Bessant, J. (2011). Managing innovation: integrating technological, market
and organizational change. Wiley.com.

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History and evolution of coaching in the context of business innovation

Coaching literally refers to the process used to transport people from where they are, to where they
want to be. Etymologically, the term coach was originated from a little Hungarian village, called
Kocsi. The village was the first to make a horse carriage, so the term took the name of its origin
place. The term coach was first used in its current meaning in Oxford University in 1830 to refer to
a tutor who carried a student through exams. In 1861, the term started to be used in sports.

Since then, the evolution of the meaning of the term coaching has been influenced by many fields
such as personal development, adult education, psychology (sports, clinical, developmental,
organizational, social and industrial) and other organizational development or leadership theories.
Since the mid-1990s, coaching has developed into a more independent discipline and relevant
professional associations emerge like the Association for Coaching, The last years the term
innovation coaching emerged to refer to a practice used to support an organization to develop its
innovation potential.

It is worth distinguishing the term innovation coaching from other related practices. Coaching
involves the co-production of (knowledge and) solutions between the entrepreneur and the coach,
the close interaction between them, but with clear and continuous reference on the experience, the
knowledge and the ideas of the entrepreneur and the needs of the company. Coaching may gain
from the previous experience and knowledge of the coach but it has to develop a solution that is
unique for the company.

Differences between other practices and business innovation coaching
Other practices Differences with business innovation
coaching
Consultancy The company authorises the terms of Co-production of knowledge and
work by and the consultant delivers the solutions between the SME management
solution. The solution is usually the team and the coach. Previous experience
transfer of a very similar solution of the coach and standard tools and
implemented in another company. techniques may be used to generate a
solution unique to the SME.
Business The mentor provides guidance, so the The reference system of the interaction is
Mentoring protg(e) defines his/her aims and the experience, the knowledge and the
objectives. The relationship assumes ideas of the entrepreneur and the needs
that the mentor is a more experienced of the SME. The coach uses approved
(and usually more powerful) than the methods to help the entrepreneur to
protg(e). The reference system of sense the needs of the company,
the relationship is the previous identify solutions and develop the
experience of the mentor, where most relevant capability of the company in the
of the knowledge comes from. long-term.
Business General encouragement is given to the Coaching is a very knowledge intensive
accompany- beneficiary through arms-length service where the coach is involved in
ment relationship. The main orientation is to both the process and the content of the
support the process of defining the interaction. The coach works closely
beneficiary goals and objectives and to with the entrepreneur to understand the
ensure that his/her actions are aligned needs of the SME, generate, evaluate
with them (irrespectively of whether and choose options and ensure the
these goals and objectives are the implementation of the actions and the
right ones or not). capture of value.
Executive or A coach meets with a senior manager Business innovation coaching focuses on
Leadership on a bilateral basis regularly over a the business innovation system of the
coaching certain period of time. Based on company rather than on the personal life
conversational techniques the coach (or leadership qualities) of its executives.
guides an action-oriented reflection. The coachee can develop leadership
The focus of the interaction is the skills by internalising the knowledge on
personality, the professional life or the the innovation process offered by the
leadership skills of the manager. coach.

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3. Coaching services
The SME instrument coaching scheme is launched with three dedicated coaching services,
each one regrouping competences related to a bundle of SMEs needs. The three starting
services are
1. Business development
2. Organisation
3. Cooperation.
Additional service(s) may be added in the future.

3.1 Business development

Mission
The business development coaching aims to augment the value of an SME, capitalizing
on customers, markets, and business relationships. It concerns the identification, analysis
and evaluation of potential business opportunities, the definition of business segments
and the development of an effective marketing mix including the monitoring of its
implementation. The ultimate goal is the integration of the expertise from different
functions, such as R&D, production, marketing and sales, into a consistent growth plan for
the SME.

Approach: As in any coaching activity, a very first task is to understand the companys
current situation (life cycle context, technological innovation, market relationship,
organisational structure, management, resources, etc.) and to agree on the next target stage
for the innovation venture. Saying this, the SME is expected to get aware of and to solve in a
learning by doing approach critical stumbling blocks on the way to market penetration and
growth. Regular contributions of business development coaching are:

o The most critical challenge for business development is to make technical and market
development converge. Regulations, missing target segmentation, weak understanding of
customers needs and constraints, unclear positioning in the value chain, entry barriers
for innovation etc. are major obstacles on the way to customers. Establishment of the
business architecture, formalisation of business segments, definition of value chains etc.
are methodological approaches helping to target in-depth analysis and validations. In
case of missing (or weak) business opportunities, the coach should support actively the
idea generating process and should depict approaches for validating them.

o Analysis of the Intellectual Property (IP) situation, including the freedom to operate, the
development of an IP strategy, patents, the right mix between proprietary, open and
compound innovations are topics often underestimated by SMEs and they may impact
future exploitation opportunities in a crucial way.

o To establish and strengthen relationships with strategic players in the new market.
Sometimes SMEs expect that the success of the new project will be such that new
players will be automatically attracted. However, more often than not, this is not the
case: a business development project may require the nurturing of new relationships.
Business partnerships need to be based on a sound value chain and they must be clearly
positioned on it. IP issues will have to be discussed on this basis. The value chain,
business model and partnerships may undergo adaptations at the transition between
different life cycle stages.

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o Entry market segments as well as pilot and lead customers should be identified and
selected by taking into account arguments from the external environment (customers,
technologies, competitors, regulations & norms etc.), from the value proposition (as
perceived by the target customers) and finally from the internal capabilities. Unbalanced
marketing strategies in an early business development stage increase substantially the
risk of failure.

o Only on the basis of a well-thought and validated business system, the SME may
strategically benefit from a collaborative project consortium. It may include key
stakeholders of the selected value chain (e.g. pilot customer) and it should achieve a
critical milestone on the way to market. At this point, there may be a need for calling the
expertise of the dedicated cooperation coaching service.

o Most business innovations require adaptations of organisation, jobs, competences,

processes etc. In some cases, the new reality may be easily assimilated to the
established world, in other cases there will be a need for fundamental organisational
transformations. The transition from a project-based business to an upscaling business
(industrialisation) is an example of a fundamental change. At this point, there may be a
need for calling the expertise of the dedicated organisational coaching service.

3.2 Organisation

Mission
The organizational development coaching aims to mobilize the tangible and intangible
resources of the SME to ensure the efficiency and performance of the company
organisation. This should be in line with the market and the critical transitions of a
business innovation venture over the firms life cycle stages. The ultimate goal is to create
the organizational conditions to underpin the development of innovation ventures,
safeguard the economic sustainability of the company and protect its competitive
advantage.

Approach: As in any coaching activity, a very first task is to understand the companys
current situation (life cycle context, organisational structure, management, resources etc.)
and to identify the next level up for the organisation and its innovation ventures.
Organisational development is directly related to the gap between the current and the
intended position in a companys life cycle. With this in mind, some key coaching steps are:

o Analyse the current strengths and weaknesses of the organization, identify opportunities
and threats with regard to the future business innovation requirements (SWOT). Make
sure that the organizational objectives and priorities are consistent with each other and
aligned to the strategic vision.

o Identify measures to enact the organisational development; bear in mind the Pareto law
when the value of these measures is assessed i.e. 20% of the measures can create the
80% of the intended value.

o Create the conditions that are conducive to change as well as to the development of the
companys strategic resources. Verify that people acknowledge the value of the
measures. Provide access to related knowledge such as methods, tools, models and
examples for planning their assimilation and/or transformation process. Plan sufficiently
the key activities of the project, identify the required resources and develop a set of
efficiency indicators to oversee the implementation of the project.

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o Commit resources to the project (people, funding etc.), finalize the proposed collaboration
with the SME and clarify roles and responsibilities regarding the foreseen intervention.

o Support management and involved staff in the implementation process. Check regularly
that the appropriation of the approach (methods, tools, knowledge) takes place to
perpetuate change and learning in the company, so that it becomes embedded within its
organisation. Evaluate regularly the implementation progress and assess the generated
results on the basis of a pre-agreed plan and certain key indicators - adjust, if necessary.
Educate and/or train the SME staff and partners to the introduced organisational methods
and set-up all the necessary support to allow them to adjust their practices to the new
methods.

o Watch the following risks related to the SMEs absorptive capacity and where needed
counterbalance them by appropriate actions:
The project management structure (e.g. advisory board, project leader) is not adapted
to its strategic importance.
The planning of the project and the assignment of responsibilities is not sufficiently
clear.
The fluctuation of day-to-day work limits the availability of required resources for the
project to a critical degree.
Key persons affected do not have sufficient appreciation or approval of the project.
Coworkers show difficulties to access new knowledge and to develop required new
competences.
Due to the expected radical change (transformation) of organisation and jobs,
coworkers develop strong resistance and obstructive behaviours.
Coworkers have problems to adapt to the expected, gradual changes of their working
conditions.
The exploitation of results is not likely to happen, because of insufficient efforts in
complementary measures required (e.g. marketing, management, financing).

3.3 Cooperation

Mission
The mission of cooperation coaching is to support SMEs in planning and implementing
innovation partnerships and project consortia and to assure that the SME benefits
strategically from them. Strategic benefit means that the partnerships, the projects and
their results become major contributions into the firms innovation ventures.

Approach: As in any coaching activity, a basic condition for coaching is to understand the
companys current situation (life cycle context, development stage of the innovation, market
relationships, contacts with partners, competences and technologies, organisational
structure, management systems, human and financial resources, etc.) and to be clear on the
next target stage for the innovation venture. A publicly co-financed research and innovation
project - for example within the scope of the H2020 SME instrument is an opportunity to
move ahead faster and with more resources on the development path. The cooperation
coach should be particularly aware of the following issues:

o The strategic frame within which the project is positioned has to be clear. This includes
the business strategy (what offering to which target?), the long-term resource strategy
(what internal competences and technologies?) and the business model (how the critical
stakeholders of a business process fit and work together?). With this in mind, the project
set-up should be designed strategically.

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o Where business and/or research partners are profitable for the project, the consortium
should be both conceived and managed according to its value creation logic. The logic of
value creation should set the agenda. Technology suppliers, research institutes and pilot
customers may provide high added value to the project and later exploitation, but they
increase also risks and complexity.

o The project set-up has to incorporate mechanisms to cope with complexity and to avoid
predictable risks. Typical mechanisms and activities to eliminate - or at least- reduce are:
Clarification of the project governance by defining how the consortium is managed,
how it is organized by processes and regulated by agreements and how partners
manage its evolution and performance over time; Make sure, that the project
governance is dominated by the business and market view, and not by research topics.
Establishment of a project plan with fixed and measurable milestones.
Positioning of partners in the project plan and clarification of budgets and financing.
Support the SME in finding potential public subsidies for the project, where needed.
Identification and analysis of intellectual property issues (IP) and formalization of a
commonly agreed IP solution in a cooperation agreement.
Validation of the consistency of the overall project description, this in particular in the
view of its impact on market penetration, upscaling and growth.

o Even the best project implementation and the greatest project results wont generate
positive business impact unless the project results are absorbed by the firm. Thus, the
absorptive capacity of the firm should be checked and, where issues are identified,
contingency measures should be planned.

o Finally, SMEs are often in need of support in securing their position in negotiations with
funding agencies, during the project implementation, and at the transition towards
exploitation.

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4. Competence grid for self-evaluation of coaches
Coach Competence Grid

The Coach Competence Grid includes the following three modules:

I Self-rating of your competences regarding the key areas of the SME's business innovation system;
II Self-rating of your experience regarding the diverse business contexts of SMEs
III Self-rating of your expertise and ambition regarding the three coaching services offered by the SME Instrument

I Self-rating of your competences regarding the key areas of the SME's business innovation system
Rate your
competence(1) Provide additional information to describe your profile
Key areas Specific topics Description 2 = Expert (optional)
1 = Practitioner
Blank = Not relevant
Product & services: Develop innovative new products or services
Platform: Use common components or building blocks to create
Offering derivative offerings
Solutions: Create integrated and customized offerings that solve
end-to-end customer problems
Redesign: Redesign core operating processes to improve efficiency
and effectiveness
Process Organisation & resources: Change form, function or activity scope
of the firm
Supply chain: Think differently about sourcing and fulfilment
Business
New distribution channels: Create new distribution channels or
innovation
innovative points of presence, including the places where offerings
vectors (2)
can be bought or used by customers
Distribution
Networking: Create network-centric intelligent and integrated
offerings.
Extension of a brand: Leverage a brand into new domains
New customers (segment): Discover unmet customer needs or
identify underserved customer segments
Value capture: Redefine how company gets paid or create
Customer
innovative new revenue streams
Experiences (new interface): Redesign customer interactions
across all touch points and all moments of contact
Generating, identifying, evaluating and selecting business
Internal & distributors innovation ideas from company internal staff as well as from the
distribution network
Generating, identifying, evaluating and selecting business
Customers
innovation ideas from challenging customers and end clients
Sources of Generating, identifying, evaluating and selecting business
Suppliers
innovation innovation ideas from sub-contractors and suppliers.
ideas (3) Generating, identifying, evaluating and selecting business
innovation ideas from science, research labs, universities, applied
Schools & research centres
universities and other public and private training and reseach
institutions
Generating, identifying, evaluating and selecting business
Others innovation ideas from competitors, conferences & exhibitions,
newspaper & web, support organisations etc.
Corporate - long term - resources strategy; Make or buy decisions;
Strategy Business strategy including definition of USP; Business model;
Business architecture; Sales strategy (e.g. exclusivity questions)
(Re-)designing emerging and changing competence profiles in
alignment with the SMEs development along its life cycle; Planning,
Qualification
hiring and developing human resources; (Re-) designing the SME's
incentive system
(Re-)designing the firm's organisation in alignment with the SMEs
development along its life cycle; (Re-)designing changing and
emerging job profiles; (Re-)designing the firm's strategic, operational
Organization and support processes by taking into account regulatories,
performance, quality, environmental, efficiency and other objectives;
(Re-)design the firm's supply chain; (Re-)design the firm's ICT
infrastructure and production automation
Improvement of the firm's generation process of business innovation
ideas; Evaluation and improvement of the firm's resource availability
for innovations; Planning, managing and implementing collaborative
Innovation process approches for innovation ventures; Co-operation agreement;
Analysing and improving the absorptive capacity of the firm for
Internal generating, implementing and exploiting business innovation
resources(3) ventures
Business planning; Financial planning; Investment strategy;
Finances Preparation for negotiations with investors and banks; Project co-
funding
Intellectual Property strategy; Freedom to operate; Patenting,
Intellectual Property branding, design, trade secrets and other measures to protect;
Proprietary and open source strategies
Identification and valuation of customers and markets; Need &
opportunity analysis; Analysis of competing technologies &
Markets approaches; Analysis of direct competitors; Analysis of regulatories
and other frame conditions; Segmentation & identification of entry
markets; Planning and implementation of marketing mix
Establishing a clear vision; Sharing that vision with others and
mobilizing them; Providing information, knowledge and methods to
Leadership implement that vision; Counter-balancing resistency and passivism;
Coordinating and balancing the conflicting interests of all members
and stakeholders
Beliefs, values, attitudes and ideas of an organisation and the way
Culture in which they affect how it does business and how its employees
behave
Lead customer facing the needs of a market segment before the
bulk of other players encounters them. Lead and pilot users should
be positioned to benefit significantly from the innovative solution and
they should take an active role in the innovation venture. These may
With customers be end-users or direct customers, such as OEMs and integrators.
Qualified customer involvement in an innovation venture reduces
substantially the risk of developing solutions which mismatch with
market needs, while at the same time increasing the chances for
convincing investors and additional customers
Critical business partners for the successful development and
Partnerships (3) commercialisation of an innovation venture may include technology
With other companies
suppliers, sub-contractors, contract manufacturers, partners with
complementary competences and technologies.
Scientific, research and development partners from labs, universities
With schools & research and other higher education schools. They may play a direct role in
centres innovation ventures and / or they may become member of an
advisory board.
Additional coaching support, additional financial, commercial,
With support agencies human resource support like foreign workforce, regulations,
lobbying..

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II Self-rating of your experience regarding the diverse business contexts of SMEs
Rate your
Life cycle experience(5) Provide additional information to describe your profile
Stages Description 2 - Comprehensive
contexts (4) (optional)
1 - Partial
Blank = Not relevant
New ideas assessed and generated: testing the market for new
Seed stage product concepts, applications and approaches. Typically
spinoffs/startups.
Largely project-based activity characterised by limited access to
Pre-
resources and potential cash flow problems. Beginning to identify
industrialized Project to project stage
market niches and segments for scalable solutions. Typically early
firms
stage/young companies.
Focus on Market segmentation and product-service architecture
Upscaling stage requiring an upgrade in management and organisational capacity.
Typically preparing for high growth stage.
Moving from economies of scale to economies of scope requiring
Expansion stage radical organisational and management development. Typically High
Growth Companies.
Business renewal required after an expansion stage in order to
Industrialized prevent the business shrinking. Looking at open innovation
Renewal stage
firms paradigms and dedicated innovation units. Typically established
organisations (constrained by vested interests).
Decreasing sales and margins calling for a cost leadership strategy
Consolidation stage based on efficiency measures, mergers and aquisitions, dislocation
to low cost countries. Typically Mature Companies.
Rate your
Industrial experience(7) Provide additional information to describe your profile
Sectors 2 - Comprehensive
sectors(6) (optional)
1 - Partial
Blank = Not relevant
A Agriculture, forestry and fishing
B Mining and quarrying
C Manufacturing
D Electricity, gas, steam and air conditioning supply
E Water supply; sewerage, waste management and remediation activities
F Construction
G Wholesale and retail trade; repair of motor vehicles and motorcycles
H Transportation and storage
I Accommodation and food service activities
J Information and communication
K Financial and insurance activities
L Real estate activities
M Professional, scientific and technical activities
N Administrative and support service activities
O Public administration and defence; compulsory social security
P Education
Q Human health and social work activities
R Arts, entertainment and recreation
S Other service activities
Activities of households as employers; undifferentiated goods- and services-producing activities of
T
households for own use
U Activities of extraterritorial organisations and bodies
Rate your
Target experience(9) Provide additional information to describe your profile
Markets 2 - Comprehensive
markets (8) (optional)
1 - Partial
Blank = Not relevant
501010 Coal
501020 Oil & Gas
501030 Oil & Gas Related Equipment and Services
502010 Renewable Energy
503010 Uranium
511010 Chemicals
512010 Metals & Mining
512020 Construction Materials
513010 Paper & Forest Products
513020 Containers & Packaging
521010 Aerospace & Defense
521020 Machinery, Equipment & Components
522010 Construction & Engineering
522020 Diversified Trading & Distributing
522030 Professional & Commercial Services
523010 Industrial Conglomerates
524050 Freight & Logistics Services
524060 Passenger Transportation Services
524070 Transport Infrastructure

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531010 Automobiles & Auto Parts
532020 Textiles & Apparel
532030 Homebuilding & Construction Supplies
532040 Household Goods
532050 Leisure Products
533010 Hotels & Entertainment Services
533020 Media & Publishing
534020 Diversified Retail
534030 Other Specialty Retailers
541010 Beverages
541020 Food & Tobacco
542010 Personal & Household Products & Services
543010 Food & Drug Retailing
551010 Banking Services
551020 Investment Banking & Investment Services
556010 Holding Companies
553010 Insurance
554020 Real Estate Operations
554030 Residential & Commercial REIT
555010 Collective Investments
561010 Healthcare Equipment & Supplies
561020 Healthcare Providers & Services
562010 Pharmaceuticals
562020 Biotechnology & Medical Research
571010 Semiconductors & Semiconductor Equipment
571020 Communications & Networking
571050 Office Equipment
571040 Electronic Equipment & Parts
571060 Computers, Phones & Household Electronics
572010 Software & IT Services
581010 Telecommunications Services
591010 Electrical Utilities & IPPs
591020 Natural Gas Utilities
591030 Water Utilities
591040 Multiline Utilities

III Self-rating of your expertise and ambition regarding the three coaching services offered by the SME Instrument

Rate your In which of the three coaching services would you like
competence(1) to improve?(12)
Coaching services (10) Description
2 = Expert 1st - Top
1 = Practitioner 2nd - Second
Blank = Not relevant 3rd - Third
The business development coaching aims to augment the value of
an SME, capitalizing on customers, markets, and business
relationships. It concerns the identification, analysis and evaluation
of potential business opportunities, the definition of business
Business development segments and the development of an effective marketing mix
including the monitoring of its implementation. The ultimate goal is
the integration of the expertise from different functions, such as
R&D, production, marketing and sales, into a consistent growth plan
for the SME.
The organizational development coaching aims to mobilize the
tangible and intangible resources of the SME to ensure the
efficiency and performance of the company organisation. This
should be in line with the market and the critical transitions of a
Organisation
business innovation venture over the firms life cycle stages. The
ultimate goal is to create the organizational conditions to underpin
the development of innovation ventures, safeguard the economic
sustainability of the company and protect its competitive advantage.
The mission of cooperation coaching is to support SMEs in planning
and implementing innovation partnerships and project consortia and
Cooperation to assure that the SME benefits strategically from them. Strategic
benefit means that the partnerships, the projects and their results
become major contributions into the firms innovation ventures.

Sources and explanations

(1) Rating of competences regarding the key areas of the SME's Business Innovation System:
2 - Expert: An expert has strong practical knowhow underpinned by methodological knowledge. He/she has the ability to support the development of client-specific solutions based on a blend of practical and
methodological inputs.
1 - Practitioner: A practitioner has practical experience, not necessarily underpinned by formalised knowledge and methods. A practitioner can help the client to develop a solution by drawing primarily from
his/her practical background.

(2) Source: Sawhney, Mohanbir et al. (2006): The 12 Different Ways for Companies to Innovate, in: MITSloan Management Review, Vol. 47, No. 3, p.75 ff. For details refer to the CoachCom2020 Coach Handbook.
(3) Source: Itami, H. (1987): Mobilizing Invisible Assets, Harvard: Harvard University Press; Doz, Y.L. and Hamel, G. (1998): Alliance Advantage. The Art of Creating Value through Partnering, Harvard:
Business School Press.
(4) Source: platinn - plateforme innovation (www.platinn.ch). For details refer to the CoachCom2020 Coach Handbook.
(5) Rating of experiences with the different stages of a company's life cycle:
2 - Comprehensive: Comprehensive experience means that you have managed a broad range of challenges related to a specific stage in a business life cycle. You can foresee the "big picture" of what may
happen and you can deal with very complex issues.
1 - Partial: Partial experience means that you have managed one or a few challenging topics related to a specific stage in a business life cycle. You can foresee what may happen up to an extent (a partial
picture") and you have limited capability to address very complex issues.
(6) NACE Code. Source: Eurostat European Commission (2008): NACE Rev.2. Statistical classification of economic activities in the European Community, in: Eurostat Methodologies and Working papers,
online: http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-RA-07-015/EN/KS-RA-07-015-EN.PDF

(7) Rating of experiences with different sectors:

2 - Comprehensive: Comprehensive experience means that you have extensive experience with the key characteristics of the specific industry, including aspects such as production processes, regulatory
requirements, standards, supply-chains etc. You know the "big picture" of good practices in this sector.
1 - Partial: Partial experience means that you have practical experience with some characteristics of the specific industry. You have a "partial picture" of good practice in this sector.

(8) Thomson Reuters Business Classification (TRBC). For explanation and detailed classification see: http://thomsonreuters.com/products/financial-risk/01_281/trbc-industry-descriptions.xls

(9) Rating of experiences with different target markets:

2 - Comprehensive: Comprehensive experience means that you have extensive experience with the key characteristics of the specific market, including aspects such as market mechanisms, competitors,
regulatory requirements, standards, customer relationships, business models etc. You have the "big picture" of how to place products on that market.
1 - Partial: Partial experience means that you have practical experience with some characteristics of the specific market. You have a "partial picture" of how to place products on that market.

(10) Source: CoachCom2020 (H2020-CSA-635518). For details refer to the CoachCom2020 Coach Handbook.

(11) This information will be used for anticipating your interests of professional development in the future coaching community.

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5. Template for establishing coaching plans

Coaching#plan

Focal#SME Sample.SME.Limited
Business#Case#(Project#Acronym) BIOGUPSCALE.XY
SME#Intrument#Phase Phase.1
Coaching#Activity# Cooperation.coaching
Coach#Name Simon.Sample

Coaching#objectives
The.complexity.of.the.business.opportunities.of.the.company.require.an.inGdepth.analysis.in.order.to.define.the.principles.and.
the.tactical.approach.for.entering.into.negotiation.with.several.active.business.partners..On.this.basis.the.business.logic.of.the.
strategic.partnership.needs.to.be.defined.and.the.basis.laid.for.envisioned.contracts..The.business.plan.needs.to.be.developed.
further.and.a.financing.strategy.defined..

Planned#tasks
Task#description N#of#hours
1 Mission,.activities.and.organization.of.envisioned.Joint.venture. 4
2 Business.architecture.and.market.segmentation 4
3 Preparation.of.final.negotiations.with.core.partner.(re.eclusivity.by.semgents.etc.) 8
4 Estimation.of.sales.and.business.figures.by.segments. 4
5 Connect.to.potential.partners.in.joint.meetings 4
6
7
8
9
10
Total#hours 24

Related#expenses#(see#Commission#Regulation)#(1)
Cost#item Description Expenses
Fee#(2) 1.350,00
Travel.(3) 2.trips,.receipts.see.attached 1.000,00
Allowance.(4) 2.days 184,00
Accomodation.(5) 1.nights 100,00
Total#expenses 1.284,00
Total#fee#and#expenses 2.634,00
(1).Commission.Decision.C(2007)5858.of.5.December.2007.laying.down.the.Rules.on.the.reimbursement.of.expenses.incurred.by.people.from.outside.the.Commission.invited.to.
attend.meetings.in.an.expert.capacity..Available.at
http://ec.europa.eu/employment_social/egf/docs/reglementation_experts_2008_en.pdf.
(2).450.per.day.or.56.25.per.hour
(3).see.Commission.Decision,.article.3
(4).92.per.day,.46.if.meeting.<100km.from.home.(see.Commission.Decision,.article.4)
(5).100.per.night.(see.Commission.Decision,.article.4)

Date.and.signature.of.the.coach Date.and.signature.for.EASME
Simon.Sample Head.of.Department

CoachCom2020 (H2020-635518) 13 / 20


6. Attachment 1: Business Innovation system

Along the transitions from one life-cycle stage to another the companys business innovation
system needs to be adapted with regard to its main vectors: offering, process, distribution,
customer. A creative change of one or more of these will lead to business innovation,
defined as new value for the customer and the firm 1 . A precondition for initiating and
changing successfully these vectors is the availability of resources. Three main categories of
resources should be taken into consideration 2 : sources of innovation ideas 3 , internal
resources (including aspects such as organization, intellectual property etc.), and
partnerships and cooperations4 (e.g. with pilot customers, clients, suppliers, and research
organizations). The business innovation system can be visualized as a holistic tree model5 in
which the four key vectors are represented as the branches and the three resource
categories as the roots:

Figure 4: Business innovation model

1
Sawhney M. et al. (2006): The 12 Different Ways for Companies to Innovate, in: MIT Sloan Management Review, vol. 47, pp.
75-81.
2
Itami, H. (1987): Mobilizing Invisible Assets, Harvard: Harvard University Press.
3
Existing customers and suppliers, and internal staff account for about 75% of innovation ideas that reach the
2
commercialisation
Itami, H. (1987): Mobilizing
phase. Regional
Invisible
Innovation
Assets, Harvard:
StrategyHarvard
of Western
University
Switzerland
Press.(2008): Need Analysis Report.
4
3
Doz, Y.L.customers
Existing and Hamel,and
G.suppliers,
(1998): Alliance
and internal
Advantage.
staff account
The Artfor
ofabout
Creating
75%Value
of innovation
through Partnering,
ideas that reach
Harvard:
the Business School
commercialisation phase. Regional Innovation Strategy of Western Switzerland (2008): Need Analysis Report.
4
Doz, Y.L. and Hamel, G. (1998): Alliance Advantage. The Art of Creating Value through Partnering, Harvard: Business School
Press.
platinn, innovation platform of Western Switzerland (www.platinn.ch)
5

CoachCom2020 (H2020-635518) 14 / 20


Innovating on one of the four vectors of business innovation can take very different forms.
The most frequent patterns include:

Vector Types Description

Products &
Develop innovative new products or services.
services
Use common components or building blocks to create derivative
Offering Platform
offerings.
Create integrated and customized offerings that solve end-to-end
Solutions
customer problems.
Redesign core operating processes to improve efficiency and
Redesign
effectiveness.
Organisation &
Process Change form, function or activity scope of the firm.
resources
Supply chain Think differently about sourcing and fulfilment.
Create new distribution channels or innovative points of
New distribution
presence, including the places where offerings can be bought or
channels
used by customers.
Distribution
Networking Create network-centric intelligent and integrated offerings.
Extension of a
Leverage a brand into new domains.
brand
New customers Discover unmet customer needs or identify underserved
(segment) customer segments.
Experience (new Redesign customer interactions across all touch points and all
Customer
interface) moments of contact.
Redefine how company gets paid or create innovative new
Value capture
revenue streams.
Table 1: The four vectors of business innovation6

The three categories of critical resources for SME are regarded as the following:

Category Sub-categories usable for assessment

Intern, competitors, customers, suppliers, universities &

Sources of innovation ideas high schools, support organisations, conferences &
exhibitions, newspapers & web, others
Strategy, qualification, organization, innovation process,
Internal resources
markets, finances, intellectual property (IP), others
Schools & research centres, other companies, customers
Partnerships and cooperations
(pilots), support organisations, others

6
Sawhney M. et al. (2006)

CoachCom2020 (H2020-635518) 15 / 20


7. Attachment 2: Life-Cycle Model

Enterprises and business units undergo systemic changes when they move from one stage
of their life cycle to the next. Based on its interaction with numerous companies over many
years platinn has developed a life cycle model highlighting the typical business challenges
and priorities of each stage. It differentiates between two principal contexts (pre-industrial
companies and industrialized firms) and six stages of development (seed stage, project-to-
project, upscaling, expansion, renewal, consolidation). It is worth emphasising that the six
stages of development are not necessarily sequential; for instance firms can move from the
seed to upscaling stage).

7
Figure 3: Life cycle model

In this life cycle model a distinction is made between the pre-industrialized companies,
such as start-ups, post-start-ups, handicraft companies with a potential for innovation and
growth, and the industrialized companies which operate at (relatively) high volume levels of
production and sales including mass production and mass-customization. The model
distinguishes the following six typical stages:

1. Seed stage: In the early seed stage, new ideas are generated, assessed and
experienced. Typical examples include spin-offs from research laboratories and
Universities. In their pioneer role, they try to test the market for new product concepts,
new applications or new business approaches. A frequent strategy for these firms is to
crosslink emerging technologies with emerging market needs. The main challenges of
seed firms are to attract first customers with convincing results. Firms at this stage need
to invest heavily on development (e.g. proving feasibility, developing prototypes and
demonstrators, or carrying-out pilot trials such as clinical tests).

2. Project-to-project stage: Success in the first stage can lead to business growth and the
company moves on to a project-based activity. Although a direct transition to
industrialisation is possible, it is also risky and exceptional. This is why most firms follow
a natural learning curve by multiplying the number of customized project applications. In

7
Based on hundreds of companies coached over the last years, the platform of innovation in Western Switzerland platinn
applies its lifecycle model with ongoing success in industry.

CoachCom2020 (H2020-635518) 16 / 20


this stage, cash flow is insufficient. The firms performance remains fragile due to limited
resources needed both for customer acquisitions and project execution. Nevertheless,
their increasing experience with a growing number of customers allows them to sense
potential market niches and segments for scalable solutions.

3. Upscaling stage: The next stage towards industrialization is the upscaling stage where
market segmentation and product-service architecture are strategic tasks requiring a
serious upgrade of the management capability. The firms at this stage will launch
product and service developments based on the commitment of strong lead customer(s).
Parallel to product/service development, other systems and processes within the firm
need to be considerably upgraded such as the production and distribution systems.
Typical challenges concern make-or-buy decisions, organisational design and resource
development, definition of (new) business models, choice of supply and distribution
partners, and financial planning.

4. Expansion stage: The successful upscaling effort is very likely to generate good
business perspectives in new markets. The expansion to new markets is a promising
option, but one involving a series of challenges. The company need to go beyond the
recently acquired upscaling capability (economies of scale) and develop the capability to
address different market/customer segments with the same product (economies of
scope). Entering new markets, developing new distribution channels and scaling up and
upgrading the production process are characteristic requirements for the expansion
phase. Expansion requires also radical organisational development and adapted
managerial structures such as the capability to delegate decisional power to professional
managers within the enterprise.

5. Renewal stage: The expansion stage reaches its limits and related businesses can start
shrinking. Well-thought and well-executed new offerings are needed to replace the old
ones and renew the business. However, diversification and replacement of established
offerings may be troublesome in long-established organisations and power structures
(with their vested interests). Disruptive renewals may be favoured by allying with third
parties (open innovation paradigm) or by providing space to radical ideas in dedicated
innovation units. Renewals with more incremental character are generally implemented
in-house while the involvement of radical renewals calls for the involvement of lead-
customers and technology partners.

6. Consolidation stage: Businesses in the mature stage of the life cycle may face
decreasing sales, profits, and cash flow. Firms can disappear or be acquired due to
market concentration processes. At the heart of a cost-leadership strategy are measures
aiming to increase the market share through large economies of scale; cost cutting
programmes through drastic increase of productivity; and finally options for dislocating
activities to suppliers or low labour cost countries. Only a few companies will have the
strength for taking a winning position in the consolidation process. If initiated sufficiently
early, smaller market players may move to the renewal stage and cross-finance
diversification measures with current cash flow. If none of those two strategies succeeds,
decline is inescapable.

Business innovation challenges have typical patterns in different life cycle transitions. Most
entrepreneurs do not have experience in this kind of transitions, are not aware of the related
challenges, and are not adequately prepared for handling them.

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8. Attachment 3: "Subject" or "object"?
The first condition for successful business innovation support is to understand the context
within which the support is placed. One critical question that needs to be clarified at this
stage is the scope of analysis. Is it a particular business innovation idea / project, or is it the
overall innovation system of a company / company unit? The CEN/TS 16555-1 standard for
Innovation management distinguishes here between specific innovation projects and
general innovation management.8 Likewise, the OECD, in the Oslo Manual, speaks of the
so-called object and subject approaches.9

In an SME, the two innovation approaches need to be addressed separately: the object
approach focusing on a specific business innovation venture, e.g. the development of a new
product; and the subject approach, in which the analytical context is the organisation, the
firm or a sub-entity of the company. The standard model of the CEN innovation management
system acknowledges this distinction and provides valuable pointers to a variety of aspects
relevant in both. It is important, however, to understand the difference between object and
subject approaches in the practice of business innovation in SMEs. Otherwise, there is a
danger that the CEN model may be interpreted in a static way and not do justice to the
dynamic nature of innovation in SMEs.

Figure 5: CEN/TS 16555-1 Innovation management system

Innovation projects, such as targeted e.g. by the SME Instrument of Horizon 2020, are
typically related to an object approach. This object view reflects the way most SMEs are
innovating. Experienced SMEs in contrast to many start-ups identify business innovation
opportunities through their strong customer relationships. They develop solutions closely
with pilot or lead customers, and they adapt their organisational set-up (the subject) in
accordance to the dynamic requirements of the object progress. This influence of objects on
subjects explains the innovation strength and the high adaptability of SMEs.

8
CEN (2013): Technical specification CEN/TS 16555-1: Innovation Management - Part 1: Innovation Management System,
pages 10, 17.
9
OECD (2005): The Measurement of Scientific and Technological Activities Oslo Manual: Guidelines for Collecting and
Interpreting Innovation Data, 3rd Edition, OECD.

CoachCom2020 (H2020-635518) 18 / 20


There is a second impact of the object dominated innovation process in SMEs: by adapting
organisation and resources, SMEs learn fast and develop their strategic resources for the
future. Thus, the object based learning mechanism is a key vector for the SMEs long-term
capacity building and for enhancing new input factors for future innovation objects.

SME

Project
Level
(object)

Company
level
(subject)

Long term impact of capacity development

Figure 6: The object approach of the innovation process in SMEs

As the challenges of an innovation object change over its life cycle stages, the assessment
needs to take into consideration this dynamic context. The CEN Innovation Process
represents on a high abstraction level this dynamics. The four phases of that process are
interlinked with the object approach in the following way:
1. In an object approach, the phase Idea Management is assumed to be finished and the
object is already on the way! This is particularly the case of a project being supported
by the SME Instrument of Horizon 2020. However, the strategic fit of the object with the
SMEs strategic frame (long term corporate / resource strategy; mid term business
strategy; business model) merits to be checked. If this strategic frame is not well thought
through or if there is a mismatch between object and strategy, the commercial outcome
of the venture will very likely not be successful. At this stage, the interdependency with
the Organisation (subject level), including the related CEN issues, should be taken into
consideration.
2. During the implementation of the idea via the Development of Projects (the second
phase of the CEN process), a series of critical decisions need to be taken. A first critical
issue is the identification of critical project partners and their strategic positioning on the
value chain of future business models. Unbalanced competences or conflicts of interest
are factors, which risk killing the consortium and make it impossible to generate a
commercial solution. A second question must be related to the critical project resources,
either in time or budgets. Finally, intellectual property (IP) issues need to be formalized
in agreements. In general, IP strategies and policies must be explicitly defined with
regard to project specific needs and with regards to long-term impacts on Enabling
Factors. Who owns what and who has which rights to use the IP are the two key areas
to be clarified. Also, the discussion of exploitation strategies of the SME and its
consortium partners may lead to a blockade among partners. Typical situations arise
when a partner requires general exclusivity. Thus, in an object approach, the third
phase of the CEN process, which is Protect and Exploit, cannot be treated as a
sequential step after the project ends. It must be integrated into the second phase.

CoachCom2020 (H2020-635518) 19 / 20


3. The CEN phase Market Introduction itself is generally a long process with several
intermediate steps. As mentioned above, already in the Development of Projects
phase, pilot end users or lead customers should be actively involved. A first reference of
an innovative solution pilot or demonstration substantially increases the chances for
finding additional clients. Moving from a first application to multi-applications, and then
to industrialisation and expansion impacts at each transition the Organisation (subject
level). New enabling factors, such as business models, dedicated competences,
processes, partners, financing etc. will be required. Thus, the question whether the re-
entry of project results in the organisation will be soft, hard or even radical, will
determine the level of efforts being required for successful market introduction. The
Absorptive Capacity methodology may help to identify critical bottlenecks and risks,
and to develop contingency measures. For defining the criteria, the Pareto Law (20/80)
will be important. Also, additional criteria from CEN Organisation can be integrated.

All over, the object approach is a highly dynamic process, which can be linked to the CEN
Innovation Process. However, the readiness of the Organisation for enhancing the
innovation object and for preparing the terrain for exploitation of project results should not be
assessed only once in a time. Measures for organisational readiness will be needed all over
the life cycle of the project (the object), and assessments of relevant success factors
should be made at the transitions of related stages and milestones. If applied in this dynamic
way, a consistency between the requirements of SMEs and the rather static CEN model can
be achieved. Related challenges are at the heart of the new EEN service to support
beneficiaries of the SME Instrument of Horizon 2020. The regional Key Account Manager
(KAM) is expected to analyse the challenges and needs of an SME and to identify suitable
coaches.10

Compared to the object approach, where the starting point is an innovation venture, the
subject approach focuses primarily on critical resources for the innovation performance of
an SME. The expectation is that an improvement of the corporate innovation management
system and processes will lead to improvements of the SMEs innovation performance. This
subject approach is related to a second EEN service, named SMEs with significant
innovation activities and a high potential for internationalisation. The European Commission
requires applying the CEN TS16555-1 definition of an innovation management system. This
definition assures a comprehensive assessment of a SMEs innovation process and may
lead to the involvement of consultants for better management of innovation by addressing
the recognised gaps. In practice, it is rare that SMEs have a dedicated innovation process.11
This is in contrast to larger companies. Therefore, focusing and working on an innovation
process as a permanent aspect of the SME organisation may risk to compromize the
relevance to the business, reduce the motivation of its management team and, by the end,
to hardly impact innovation performance and growth in the company. However, turning the
analytical scope on challenges related to the development and exploitation of opportunities
for high innovation and growth within an SME, will substantially increase the strategic
interest and commitment of its management. In other words, the subject approach should
be linked to the SMEs innovation context and should take care of its innovation objects.
Time-consuming assessments and heavy reports are not likely to foster innovation dynamics
in SMEs. In contrast, smaller sequences of supporting identification of innovation
opportunities, definition of actions, designing and implementation of projects, preparing
commercialisation strategies etc. have much more chances of boosting the SMEs
innovation performance. First success will increase the willingness for next and probably
more challenging steps. This is the way a SME can move fast on its learning path.

10
The smE-MPOWER Business innovation roadmap methodology may help the KAM to do so.
11
In general, formal innovation management processes are more often found in middle to large companies than in SMEs. Cp.
e.g. Thorpe, R., Holt, R., Macpherson, A., Pittaway, L. (2005): Using knowledge within small and medium-sized firms: A
systematic review of evidence, International Journal of Management Reviews, 7 (4), pp. 257-281. Also already
Rothwell/Zegveld (1992): Innovation and the Small and Medium-sized Firms, London: Pinter.

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