The entrepreneurial control imperative - A case history of Steria (1969-2000)

Steria, a leading French information systems and services company, was created with the vision that it would be owned by employees of all ranks. Founded in 1969 with US$80,000 initial capital and eight employees, Steria achieved its initial public offering (IPO) in 1999, and in May 2000 had sales of US$400 million, 3000 employees, and a market value of US$800 million, with a price/ earnings ratio of 55. Steria's strategy was driven by the entrepreneurial control imperative. While the founder entrepreneur gradually relinquished control in favor of new employees, Steria was wary, almost paranoid, in ensuring its independence from takeovers by other companies. We discuss the four stages of growth of Steria, separated by three internal crises. Two of these crises were caused by the revolt of dissatisfied employees, the "barons," and were resolved through the statesmanship of the founder entrepreneur. We analyze the key factors that contributed to the success of Steria, and we discuss whether the strategy of maintaining entrepreneurial control was beneficial to Steria and whether this strategy is still valid for the post-IPO "New Steria." (C) 2002 Published by Elsevier Science Inc.