Intrapreneurs are the entrepreneurs in the corporate world. There are many reasons why Intrapreneurship is crucial for big organizations. Here are 5 five of them:
1-Growth: At the time of the economic crisis most of the big corporations stopped investing in the future. Now they have a large surplus.They know that growth is essential in order for them to get a competitive edge, but the way to get there is unclear. The objective of fostering Intrapreneurship is to elicit the entrepreneurial mindset among the corporate’s employees and to design the infrastructure needed to support the desired growth. This infrastructure can be reached through a systems’ view of growth that allows for the corporate internal transformation. In summary, Intrapreneurship boosts organizations to generate new business opportunities and growth.
2-Innovation: Though innovation is the key successful growth, failure rates for innovative projects are still high, estimated at 50% to 90%. Therefore creating one or two innovative initiatives a year cannot not sustain maintaining a competitive edge. This requires organizations to be innovating at all times. However, because of high failure rates and the need to be avoid high risk, investment should be minimized at the early stages and the process should be planned using existing organizational capabilities. Relying on internal Innovation alone is not sufficient for success. Organizations need to set the context for innovation – the right people, the right processes and the right environment. Innovation and intrapreneurship are tied together. You need both to be successful. Providing the right environment for Intrapreneurship supports and sustains innovation over time.
3-Leadership: Research has classified leadership as the key prognosticator of innovation success. Yet most of CEOs don’t feel like they have the capabilities inside their organizations to achieve their desired growth level. The skills and capabilities that drive most executives to be part of the top management in the past are not the skills required to build new growth businesses. Research have found that only 4% of leaders are intrapreneurial. Intrapreneurship requires a new set of competencies and behaviors. Intrapreneurial leaders think and act differently, they have different motivations and aspirations, and they prefer working in different work environments. It is this differentiation that makes them the perfect candidate to lead new growth initiatives. This go along with Y generation characteristics.Intrapreneurship is the one of the best ways to attract and retain your most entrepreneurial leaders and next generation of management.
4-Community: Leaders can engage and involve individuals on personal initiative. Show me a leader, I’ll show you a number of followers.Community makes use of leadership, but not the egocentric, “heroic” kind that has become so prevalent in the business world. Community requires a more modest form of leadership that might be called engaged and distributed management. A community leader is personally engaged in order to engage others. If you doubt this can happen, take a look at how open-source operations work. Communityship needs to be strengthened in many organizations today. This does not mean that we have to put it in place of leadership. What we need is balance. We would do well, therefore, to see both these forces as working together in a socially responsible way to get past the insularity that exists in many organizations. A healthy society balances leadership, community, and citizenship (employees).
5-Engagement: Gallup Research estimates that disengaged employees cost US organizations over $450 billion in lost productivity. In 2012, only 30% of American workers were engaged and committed to their workplace. Lost productivity translates to slow or no growth. Intrapreneurship provides the opportunity to engage employees in work that is challenging and meaningful. Intrapreneurs are highly engaged in their work. Their passion and determination inspire others to get involved and try new things. As they grow, the organization grows. Intrapreneurship helps employees stretch and grow while keeping them engaged. Intrapreneurship has become a critical imperative for all organizations and a survival strategy for others. Organizations that have embraced Intrapreneurship have achieved higher financial returns, increased productivity, more innovation and higher levels of employee engagement.
Isn’t it time you took a closer look at Intrapreneurship and what it can mean for your organization?