Companies like 3M, Google, DreamWorks and Facebook have in common that they’ve embraced the idea of allowing their employees to become inside-entrepreneurs, so-called intrapreneurs, and capitalized on new business ideas. These intrapreneurs take new initiatives without being asked to do so. Hence, they focus on innovation and creativity, and transform an idea into a profitable venture, while operating within the organizational environment.
How to create intrapreneurs and what they look like
Let’s first have a look at the required breeding ground to attract and develop existing and potential intrapreneurs. Afterwards we’ll review the key characteristics of a successful intrapreneur.
Characteristics of an Intrapreneurial Organization
- An Environment for Taking and Rewarding Risks
There needs to exist an environment where employees are willing to take risks. The risk tests and increases intrapreneurial conviction and drive. It binds the corporation in an implied contract not to stop the intrapreneur for any reason other than poor performance. - The Rewards of Success Must Be Shared
Pre-agreed and transparent criteria between the organization and the employee about how to split the rewards of the project are key. - Appropriate Funding
Funding a project must be comprehensive and timely so that the intrapreneur doesn’t have to keep running to the board to ask for support for his initiative. - Financial Incentives
The intrapreneur should have the opportunity to build up capital, etc. The successful intrapreneur should earn in addition to his cash bonus, complete control of a definite amount of R&D funds, marketing funds, etc. – funds which he would have a completely free hand in investing on behalf of the corporation in his future projects. - Granting Independence
The corporation must let the employee-entrepreneur who has earned his independence, have it. The intrapreneur should be almost untouchable by corporate discipline, thereby allowing the independence of spirit the system was designed to create, to flourish. If he doesn’t, he rapidly loses his motivation and competency to run the project.
Characteristics of a Successful Intrapreneur
- Turning Opportunities and Ideas into Sellable Products
A successful intrapreneur knows how to spot opportunities, to conduct proper market research, to design products, to acquire needed resources and to organize the business. - Behavioral Aspects
He is naturally inclined to take initiatives. He’s creative and results-focused. Equipped with a very high resilience level, an extraordinary strong ownership attitude, and driven fierce by bias for action. - Social responsibility
He would ensure that there is an active compliance with the spirit of the law, ethical standards and international norms. If not, even the most promising project will not be sustainable and supported. - Networking
Both entrepreneur and intrapreneur must master this skill, the only difference being that in the intrapreneur’s environment, “office politics” play a bigger part. Bottom-line, in the corporate environment, you can’t get somewhere without a powerful support network. - Organization and Process Management
A successful intrapreneur prefers working with a small number of very good people on key projects – the smaller the better. There should exist a short, straightforward document (up to 3 pages) and/ or a simple drawing explaining the project. Required reports should be kept to a minimum, but important work must be recorded thoroughly.
Intrapreneurship is a key to successful growth and inspiring change, and offers an excellent opportunity to develop the leadership skills and career perspectives of an organization’s top employees.
How would you define the term “intrapreneur?” How relevant do you think it is?
Looking forward to receiving your feedback. Join the discussion!
Best,
Andreas von der Heydt