Placing a strategy Creating an internal startup is not without its problems, as staff left behind at the parent company may well resent the perceived good fortune of former colleagues, says Giertz. This is particularly pertinent if the organisation wishes to re-integrate the ebusiness department later. Without a strategy from the start, you will lose the innovation you have worked so hard to achieve. Mindful of these risks, some advise against the spin-off altogether. There's always been a shortage of skilled specialists, says Boxer, and companies should reward people as an incentive.
Big companies believe there are lessons to be learned from the startup way of doing business.
British Airways is spinning off its ecommerce division into a separate company and hopes to conduct at least 50 per cent of its business over the internet by 2005. With so much riding on its ecommerce operation, BA is offering incentives and attractive working conditions to attract the best people. Since the company is not in a position to offer stock options, these incentives take the form of premium salaries and the opportunity to work on cutting-edge projects. We can offer the startup culture with the financial resources and big implementations of an international organisation. These types of incentives can attract the best ecommerce staff, but it is vital to help staff adjust to new ways of working if the spin-off is to succeed, says Giertz.