The Organizational Benefits of Intrapreneurship
Why Should Businesses Adopt Intrapreneurship Programs?
Business owners and managers are usually obsessed with improving "the bottom line." With this mentality, investors and executives share expectations for constant improvements in profits and market share. However, achieving these lofty goals is rarely easy. The management team for any organization is increasingly under fire if they do not keep expenses under control while also increasing sales. What are the most successful strategies for dealing with this ongoing struggle?
Two words come to mind: "innovation" and "intrapreneurship." We see daily examples of companies going out of business when they fail to innovate. On the flip side of the innovation coin, new products and services allow businesses to move their enterprise to the next level. But how can companies improve their odds of generating new ideas that lead to "the next new thing?"
While entrepreneurs like Larry Page and Sergey Brin of Google are responsible for many notable examples of successful innovation, there are practical limits to what individuals can accomplish operating on their own in risky entrepreneurial ventures. This is why the concept of intrapreneurship can serve as a practical strategy for innovation within existing companies.
What are intrapreneurs? They are employees who think like entrepreneurs but work in an established organization rather than on their own. For every successful entrepreneur like Steve Jobs, there are many more intrapreneurial individuals that can contribute to innovation within organizations everywhere.
How can you learn what you need to know about intrapreneurship? The answers are waiting for you below.
The Intrapreneurship Journey Begins Here
The recommended place to start your journey of discovery about intrapreneurs is a recent book by Howard Edward Haller, Ph.D. Reading "Intrapreneurship: Ignite Innovation" is the suggested entry point for anyone who wants to learn more about this important business strategy.
This book was published in 2014. It represents a definitive guide to intrapreneurs and intrapreneurship. Dr. Haller provides a superb foundation about intrapreneurship for business owners, managers, leaders, employees and students. Kindle or paperback? For less than a combined total of $25, buying both could be a smart choice. For those without a Kindle, Amazon provides a (free) app that will allow you to view the Kindle version on other devices such as a desktop computer or iPad.
The Importance of Intrapreneurs
As you will learn by reading Dr. Haller's book, intrapreneurship is a superb example of what can happen when management, leadership, planning and communication come together as they should. This should be a "Eureka!" moment for all business owners, managers and employees. Despite the many answers provided by this book, astute readers will still have questions. Who will be in charge of doing this? How many intrapreneurs are there?
For students planning ahead for a successful career, think of this book as part of your due diligence process. Career development should include as much planning as possible, and a realistic career plan should start with some hard questions. What kind of role do you want as an employee? How can businesses create an atmosphere that is more conducive to innovation? Do you want to be an intrapreneur?
Of course, even the best book on any subject cannot answer every imaginable question. It will be a successful reading and learning experience if the book inspires readers to take the next step. For anyone looking for a book that connects the dots between profits, market share, employee retention and product development, "Intrapreneurship: Ignite Innovation" will open your eyes to the importance of intrapreneurs.
Intrapreneurship has a solid track record. Many experts, in fact, say it may be the best way for established businesses to discover new products and markets and perhaps ensure their very survival in today's rough and tumble corporate world.— Howard E. Haller, Ph.D.
What Are Intrapreneurs?
This a short video (90 seconds) that provides a concise introduction to intrapreneurship. As mentioned, some confusion about the differences between entrepreneurs and intrapreneurs cannot be avoided. However, any confusion should disappear quickly after you read Dr. Haller's book (shown above).
Three Enduring Organizational Benefits
What to Expect When Intrapreneurship Ignites Within Your Organization
Dr. Haller's book is a gem for those who want business authors to get to the point quickly and without requiring readers to invest excessive time during a frantic schedule. For example, in 130 pages he manages to cover critical topics such as six ways for organizations to build a culture of intrapreneurship and nine essential habits of successful intrapreneurs while also including over 15 practical case studies to illustrate what intrapreneurship looks like in the real business world.
As "perfect" as this book is for anyone wanting to learn more about intrapreneurs and intrapreneurship, "Intrapreneurship: Ignite Innovation" is the beginning of the journey and not the end. Reading this book will not replace the need for business leaders and managers to do plenty of "heavy lifting" in order to implement a successful and effective intrapreneurship program.
Remember the "bottom line emphasis" mentioned in the introduction? Any prudent business owner or leader should ask "what are the benefits for my company?" when examining a new strategic direction such as an intrapreneurship program. According to Dr. Haller, here are three of those benefits:
- Increasing market share and profits: the “bottom line” at its finest.
- Recruiting and retaining the best employees: the “human element” in the bottom line results.
- Developing new products and services: increasing sales is a great way to improve the bottom line.
What Are the Costs of Ignoring Intrapreneurs?
The Bottom Line: Intrapreneurship Programs and Profitability
With a prudent bottom-line mentality, managers should examine both costs and benefits as part of a disciplined review of whether an intrapreneurship program will be cost-effective for an organization. In this assessment, it will be worthwhile to include a candid discussion of what might happen if a company ignores the potential of intrapreneurs. Here are some examples included in Dr. Haller's book:
- Lost profits due to fewer new services or products.
- Downsizing because of shrinking sales activity.
- Going out of business: Blockbuster, Circuit City and Borders are three real-life examples.
- In many cases, intrapreneurship has proven to be the critical difference between businesses failing or surviving.
The Art of Intrapreneurship - Intrapreneurs in Canada
Here is a four-minute commentary with a Canadian perspective of intrapreneurship. Intrapreneurs are important to organizations throughout the world, and intrapreneurship programs have the potential to provide national and international benefits.
What's the Plan for Intrapreneurship?
So here's to intrapreneurs everywhere: The corporate world needs us now more than ever, and you might just be one without knowing it.— David Armano, Forbes (May 21, 2012)
© 2014 Stephen Bush