You are a non-executive Director for Keysystems Ltd. You have been elected to the Board of directors based on your expertise in innovation and corporate entrepreneurship across many organisations.

Keysystems Ltd. Is a company that focusses on biometric security protocols and systems for companies.

Together you and the other members of the board have developed a strategy which incorporates a Corporate Entrepreneurial strategy for Keysystems. However months after the launch of the strategy the board members feel that there is no real take up of the strategy by the organisation as a whole.

You make some enquiries from your CEO and try to identify what the reason is, he says that he does not receive many recommendations and innovative suggestions from his senior and middle managers.

Those ideas that he does receive have been " very minor and not worth mentioning to the Board", and I normally look at the ideas when I can get around to it. He said besides not many managers understand what the board wants and how to assess the suggested ideas.

You also ask him of how the company rewards the employees, the CEO reveals that the only recognition system has been established and any bonuses are focussed on achieving sales and quotas for the year and meeting customer's needs.

You review the company's organisational structure and discover that the company has a very hierarchal structure with a great deal of the authority and control centred on a few individuals at senior levels in the organisation

You investigate further and in discussion with one your most senior managers he continually indicates that the there is no real focus on innovation by the other senior managers, as they are too busy with operating the business to meet current customers' demands.

Discuss to the Board of Directors on 3 key findings and issues relating to CE based on your discussion and observation of the CE leadership and management practices.