6 minute read
Intrapreneurship
Driving Innovation from within an Organisation
Business Fit Magazine regular contributors, Maike Benner and Lilli Rohde of MaLish Consulting, explain what Intrapreneurship is and how identifying employees in your company to become intrapreneurs could benefit you.
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You as a company leader and decision-maker are bound to be faced with the question: How can we stay or become more competitive, innovative and a great employer by leveraging the status quo as regards to people and budgets?
A common belief is that external short-term help from experts i.e. consultants who have undergone transformation many times before, is the fastest and best way to tackle the challenge. As consultants ourselves we have witnessed and produced many success stories. However, this article focuses on another concept of business development.
Have you ever heard and thought about establishing intrapreneurship in your company? Let´s have a look at this concept.
What is Intrapreneurship?
The term intrapreneurship refers to a system which allows an employee to act like an entrepreneur within a company or organisation. Intrapreneurs, as their entrepreneurial counterparts, are self-motivated, proactive, and action-oriented people who take initiative and do not shy away from challenges, hurdles and setbacks in business development or product innovation. Intrapreneurs are more courageous employees who drive innovation, while still valuing the benefits of being part of an organisation such as a fixed job, steady income, social security and ultimately not being responsible for losses and failure as an entrepreneur.
Intrapreneurship creates an entrepreneurial environment by allowing employees to use their entrepreneurial skills for the benefit of both: the company and the employee. It gives employees the freedom to experiment, as well as the potential for growth within an organisation.
Intrapreneurship fosters autonomy and independence, while trying to find the best solution.
How do you establish intrapreneurship in your company?
It is important for you as an employer to find and recognise these employees. Most likely the skillset needed to become more competitive, flexible, innovative and to drive down costs lie within your organisation already.
Not promoting intrapreneurship or recognising employees who demonstrate an intrapreneurial spirit, can be negative to a brand or company both financially and reputation wise.
Employers who encourage intrapreneurship profit, because it leads to a closer connection with the fate of the company. Establishing internal entrepreneurship can help solve problems, and lead to innovation and growth. Companies that do not promote intrapreneurship may lose capable people to other companies, or to the start-up world.
Identifying intrapreneurs can sometimes be difficult. Sure, there are some traits and characteristics which may be displayed in a worker or team already, like self-motivation, ambitiousness and goal-orientation. The people we are referring to are often able to solve problems on their own and come up with ideas leading to process improvements. An intrapreneur may also take certain risks by assuming multiple tasks—even some that he or she may not be comfortable with—and look for new challenges.
Is there an employee who in a way is getting on your nerves because he or she constantly comes up with new ideas, executes them without checking back with you? That person could be among your intrapreneur-team.
As the business world is complex and the intrapreneurial spirit often not that obvious as described above, we as consultants, have started using assessment tools. This can be questionnaires for example – to assess the underlying values, work ethics, characteristics to ensure that the most capable people of an organisation are selected and not the ones who make the most noise about it. This is also where we take our own entrepreneurial experience into account. After founding our own company MaLish three years ago and having coached many start-up, entrepreneurs, sidepreneurs and wanna-preneurs, we know: it is not that simple and obvious. Assigning the right tasks to the right people avoids a lot of stress, burn-out, tension and re-work along the process.
Why is intrapreneurship good for your business?
Intrapreneurs can develop and use their creativity to enhance existing goods and services within the background of the business.
The company profits from an environment (even if it is only a team or department) that does not shy away from risk, feels responsible for results and budgets, can really dig into the challenge, test theories, and decide which methods are most effective for solving problems.
The intrapreneur (team) also profits from freedom, responsibility for a result but without any of the risk attached to being an outside entrepreneur. By including employees from every age group when resolving issues, a variety of answers are proposed and resolutions determined in a more efficient manner, benefiting everyone in the organisation. Many millennials are embracing the intrapreneurial style of work. They desire meaning, creativity and autonomy when working. Millennials want their own projects to develop as they help their companies grow and this is a great opportunity for you as a company.
Businesses like Google (an employee came up with Gmail) and Sony (an employee had the idea for PlayStation) showed how, by providing employees with time and incentives to search for innovative new product ideas/product innovation or cost-saving processes significant rises in both revenues and profits can be achieved.
If employees are given time to be creative, new product and process ideas are more likely to be researched and developed, especially if employees have financial incentives to come up with good ideas. The most promising innovations can then be analysed and the ones which suggest positive financial returns can be supported.
How do you create an intrapreneurship culture?
When companies build an intrapreneurial environment, one fostering risk-taking and innovation, they gain a great power. Enthusiasm increases when people believe they are not only given a real opportunity to think, try and transform but will be rewarded for it! Teams become more productive, consistent, satisfied, and efficient.
An intrapreneurship culture is not an overnight event and must be led or initiated by the management team. When people start thinking like intrapreneurs - more naturally than forced – that is when the “culture” is born.
Here are some practical tips to start building such a culture:
1. Identify your Intrapreneurs
In every company, intrapreneurs already exist but they need to be discovered, nurtured and boosted. As this can be a challenge, we recommend taking experts on board who can spot the intrapreneurial spirit and help a team come together.
2. Give equal opportunities for all
Allow all individuals to voice their views and opinions freely. Titles and levels have nothing to do with intrapreneurship
3. Empower your people
Each person must feel ownership for the improvements and progress they have made.
4. Foster a risk-taking environment
Intrapreneurs make decisions, they must be willing to take smart risks and, although be fully prepared to be held accountable, they should not be afraid of mistreatment or mockery if they fail.
5. Encourage collaboration and healthy competition
Often seen as two separate things, in intrapreneurship collaboration and competition need to be balanced.
6. Be transparent
Providing employees with important company information and considering their views in managerial decisions will make them feel more involved, regardless of their own individual roles.
7. Give enough time and space
To come up with ideas which are out of the box, your employees need time and space for it.
8. Celebrate intrapreneurial successes together with your teams
Acknowledgment and rewards are important positive boosters for intrapreneurs and provide them the incentive to stay and continue to add value in the future.
9. Provide needed resources
On the list of resources are tools, finances, people, networks, but also access to experts who can be asked for advice.
As shown, to establish intrapreneurship within your organisation has many advantages. Of course, it is not done overnight, but it is definitely worth it.
We invite you to get in touch with us, for feedback or further questions and we would love to consult you on developing a customised strategy for your intrapreneurial journey.
Maike Benner and Lilli Rohde founders of MaLish Consulting, an international business consultancy and coaching company. Combining their experiences and strengths in people management, financials, tools and system, communication and leadership MaLish offers a variety of services for companies and individuals. www.compagneur.com - malish.global/about/malish-business/
Maike Benner and Lilli Rohde
