Learn, Business, Understanding Intrapreneurs is Inside, an Entrepreneurs!
Intrapreneurship refers to employee initiatives in organizations to undertake something new, without being asked to do so. Hence, the intrapreneur focuses on innovation and creativity and transforms. An idea into a profitable venture, while operating within the organizational environment. Thus, intrapreneurs are Inside entrepreneurs who follow the goal of the organization. Intrapreneurship is an example of motivation through job design, either formally or informally. Another important concept is the Corporate Social Entrepreneurship. Which is the intrapreneurship within the firm which is driven to produce social capital in addition to economic capital? Also learn, What is Intrapreneur? Meaning and Definition! How to Intrapreneurs is Inside an Entrepreneurs?
Understand by Example:
A classic case of intrapreneurs is that of the founders of Adobe, John Warnock, and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraging. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $6 billion.
Employees or perhaps those engaged in a special project within a larger firm, are encouraged to behave as entrepreneurs, even though they have the resources, capabilities, and security of the larger firm to draw upon. Capturing a little of the dynamic nature of entrepreneurial management (trying things until successful, learning from failures, attempting to conserve resources, etc.) adds to the potential of an otherwise static organization. Without exposing those employees to the risks or accountability normally associated with entrepreneurial failure.
Many companies are famous for setting up internal organizations whose purpose is to promote innovation within their ranks. One of the most well-known is the “Skunk Works” group at Lockheed Martin. The group was originally named after a reference in a cartoon and was first brought together in 1943 to build the P-80 fighter jet. Because the project was to eventually become a part of the war effort, the project was internally protected and secretive. Kelly Johnson, later famous for Kelly’s 14 rules of intrapreneurship, was the director of this group.
Another example could be 3M, who encourage many projects within the company.
They give the certain freedom to employees to create their own projects, and they even give them funds to use for these projects. Genesis Grant is 3M’s intrapreneurial program which finances projects that might not end up getting funds through normal channels. Genesis Grant offers $85,000 to these innovators to carry forward their projects. In the days of its founders, HP used to have similar policies and just such an innovation-friendly atmosphere and intrapreneurial reputation. Besides 3M, Intel also has a tradition of implementing intrapreneurship.
Robbie Bach, J Allard, and team’s XBOX might not have been feasible without the Microsoft’s money and infrastructure. The project required 100’s of millions and quality talent to make the product.
Entrepreneurs are not born but are self-made. However, there are some common psychological traits that make them stand out. Such as a strong will to achieve, the ability to take responsibility and risks, and the desire for independence and internal control. Also learn,
Equally, corporate entrepreneurs tend to take initiative, accept challenges, and discover new opportunities for growth for the company that they work for. They look to be leaders and put their ideas into practice. Nevertheless, they have a lesser desire for independence and prefer the security of their work as opposed to the uncertainty of starting up their own company.
Traits intrapreneurs have in common with independent entrepreneurs: Intrapreneurs identify new opportunities for growth for the company. They develop a business model, they form teams, and they present their ideas and projects to the various evaluating committees at the company. Overall, they are aware that their success will depend on their ability to manage their network of internal supporters, namely those people who are higher up in the organization and who support their ideas.
Intrapreneurs can also identify by the following traits:
- The main motivation for an intrapreneur is to achieve hierarchical independence and the possibility to move up the reward scheme within the company.
- Their time orientation depends on the urgency to meet deadlines set by themselves and by the company.
- Their activity is based on direct participation and team leadership instead of delegation and supervision of others.
- Instead of carefully managing risks, which is a characteristic of management, intrapreneurs take moderate risks, as if they were independent entrepreneurs.
- In terms of status, corporate entrepreneurs are not worried about traditional status symbols; they are looking for independence.
- When making decisions, they are not dependent on superiors. They are able to make others agree with them in order to achieve their goals.
- Unlike a manager, who guide others, an intrapreneur guides themselves, their clients, and their internal stakeholders.
- They predominantly establish transactional relationships with others, without being left out of the organization’s hierarchy.
All companies need employees with entrepreneurial instincts, and the challenge for businesses is to include tools in their human resources policy that attract and retain people with these characteristics. Correctly managing these employees’ motivation and competitive edge will stop them from leaving the company. Whether that be to start their own business or to join another company with a more entrepreneurial culture.
How far does intrapreneurship reach?
Even though corporate entrepreneurship encompasses the strategies and practices that companies use to look for new business opportunities via the promotion and management of entrepreneurial competencies, the overall impact of intrapreneurs can see in two ways. Why are the Need Entrepreneurship for Small Business?
On one hand, they may focus on generating new business for companies, or even new companies or spin-off companies. This involves searching for new opportunities to amplify the activities of the company in terms of its related sectors, as well as the development of new products, markets, and technology. They create fresh activities within the organization. Which of course involves a larger risk of failure than the company’s business lines, as well as an overall degree of uncertainty. Firms such as P&G, 3M, Google, and more recently Tesla are clear examples of strong intrapreneurial dynamics and a continuous development of new business within the companies.
On the other hand, a strategic renovation can take shape, which can imply a new combination of resources and a full transformation of the company’s foundations, changing it into a different company from what it was before. The process of strategic renovation often includes the redefining of the company’s mission, the creation of a new business model, the reformulation of the competitive base strategies, and the acquisition or generation of new competencies. The success of this process mainly depends on the entrepreneurial instinct similar to what is seen when companies are first created. With a committed entrepreneurial leader who has the same motivation, attitude, and behavior of a traditional independent entrepreneur. Some notable examples of companies in which intrapreneurial leadership has driven relevant strategic renovation are IBM, Xerox, and Lego.
“Don’t Think Intrapreneurs Are Just Like Entrepreneurs”
Most people believe intrapreneurs are simply internal entrepreneurs, and that they should expect to act in the same ways, be driven by the same motivations, and respond similarly to a wide array of circumstances. These are naïve assumptions that, more often than not, will derail intrapreneurship.
So, if that’s not exactly true, what is? We asked Larry Myler, Forbes.com columnist, for advice. Larry strongly advocates intrapreneurship as the highest form of employee engagement. As a serial entrepreneur and intrapreneur expert, he shares four fundamental intra/entre-preneur disconnects for you to consider if you are serious about implementing intrapreneurship in your organization.
Myler observes, “Entrepreneurs willingly sign up for unlimited risk or boundless reward. Not so with intrapreneurs, who take a paycheck from an organization largely to avoid financial risk, and therefore do not expect huge financial gains”.
This is the main psychographic difference between the two, and the reason why motivations (both intrinsic and extrinsic) must carefully align for intrapreneurs.”
Intrapreneurs do take more risks than your average employee and it’s important you reward smart risk-taking. Even though the product was a complete flop, the guys who invented New Coke were given raises and promotions instead of being canned. Why?
Because Coca-Cola executives love that they were forward-thinking and were willing to take a smart, calculated risk, even if it didn’t pay off. During the Intrapreneurship Conference, you’ll get to hear about rewards systems other companies have adopted for driving intrapreneurship.
“Intrapreneurs by definition are not as autonomous as entrepreneurs, although they’re typically made to believe they are. They are part of a bigger organization with well-establish operations, and that means they inevitably give up some autonomy.”
According to the bureaucratic theory of organization, when everyone does his or her specialized job as directed by the boss. The whole works together and creates value for the customer and the shareholders. This sort of hierarchical coordination once worked well enough. Today, it is increasingly unworkable and become obsolete.
The intrapreneurial challenge is to find the golden path: to firmly grasp a worthwhile dream in one hand and reality on the other. During the Intrapreneurship Conference, we will hear from Noam Wekser, Member of the Board of Oracle. On the challenge of encouraging intrapreneurial behavior in a bureaucratic classic day-to-day business environment.
3. Resource attainment!
“Entrepreneurs hire marketing, advertising, R&D, design, engineering, and sales services. They call the shots from the vantage point of boss or customer. Intrapreneurs, however, are employees and have to negotiate for these and other resources, subject to internal availability. The upside for intrapreneurs is that funding is generally offering by the organization, while entrepreneurs struggle to cobble together necessary funding.”
What support can you offer to your intrapreneurial teams? Think of resources, brain-power, assets, and intellectual capital. It makes their job easier, drives collaboration and creativity, but especially makes it more likely they will succeed, moving your business forward.
Mentorship has proven to be one of the most effective; especially when provided by seasoned entrepreneurs. During the Intrapreneurship Conference, you’ll get to know various strategies for implementing such a mentorship program.
“Entrepreneurs have the luxury of building a company’s culture from scratch. While intrapreneurs fight against a long history of many deeply held and widely. Shared beliefs and assumptions—some of which run counter to intrapreneurship itself.”
Culture – it’s a strange thing. Most innovative companies once in the market, end up following customers’ requests and fail to be able to renew their perspective. This is the classic innovator’s dilemma. Intrapreneurship strategies reveal themselves as very solid ways of quenching these structural and cultural shortcomings. By reconnecting teams that have become risk-adverse to the innovation playfield. Philippe Méda will deliver a keynote on this topic.
Intrapreneurs are not just entrepreneurs who happen to work inside an organization. There are some fundamental differences in their motivations, the skills they possess and the environment they need to thrive. If you want to know how you can implement intrapreneurship in your organization.
1. How? – //www.mbaknol.com/modern-management-concepts/what-is-intrapreneurship/
2. Intrapreneurs Inside Your Company – //gnp.advancedmanagement.net/article/2017/08/finding-intrapreneurs-inside-your-company
3. Just Like – //www.intrapreneurshipconference.com/intrapreneurs-are-not-entrepreneurs/
4. Photo Credit URL – //www.raconteur.net/wp-content/uploads/2016/09/professional-development-image-Klaus-Vedfelt-Getty-Images.jpg