Imagine if you could be just as bold and innovative in your job as a startup founder. What sounds fancy will change our work culture from the ground up. Because we live in an era of digital revolution, in which innovation, agility and new ways of working set the tone. In this dynamic environment, one concept is becoming increasingly important: intrapreneurship. This creates a culture of innovation that enables companies to keep up with the rapid pace of change. By developing bold, creative and successful talent, they unleash their innovative power. However, for the implementation of intrapreneurship in the company to be successful, an environment that supports employees is required.
By Ariane Lindemann
What exactly is intrapreneurship?
Intrapreneurship is the concept of promoting entrepreneurial thinking and acting within an established organization. It’s about encouraging employees to realize their creative ideas, take risks and explore new business opportunities as if they were real entrepreneurs.
Why is intrapreneurship so important right now?
Digitization has completely changed the rules of the game for companies. Traditional business models are being turned upside down, new technologies are conquering the market and customers expect the highest level of innovation and individualization. Businesses that are unable to keep up with this rapid pace of change are risking their very existence.
Intrapreneurship offers an answer to these challenges.
Hotbed for breakthrough innovations
Intrapreneurs are creative minds who develop new ideas and put them into practice. You are ready to break through traditional thought patterns and find innovative solutions. Through intrapreneurship, companies become breeding grounds for groundbreaking innovations.
A prime example of this is Google. The so-called “20 percent time” encourages employees to use 20 percent of their working hours for their own projects. Result? Products like Gmail and Google Maps were born out of this intrapreneurship culture.
Intrapreneurship creates competitive advantages
Companies that promote intrapreneurship are more agile and adaptable. You can react quickly to market changes and take advantage of new business opportunities. Intrapreneurs are motivated to question the status quo and develop improved processes or products. This gives your company a decisive competitive advantage.
A living example is retail giant Amazon. Through the “working backwards” concept, in which employees start their work with a press release before starting the actual project, Amazon has created an entrepreneurial culture that has led to groundbreaking innovations such as the Kindle and Amazon Web Services.
The key to employee engagement and talent development
Intrapreneurship gives employees the feeling that their ideas count and that they can make a real contribution to the success of the company. This leads to higher employee engagement and a stronger connection to the company.
The online payment provider PayPal enables employees to pursue their own projects and gain entrepreneurial experience with the PayPal Business Challenge. This friendly competition brings teams from PayPal together with small local organizations to find ways to improve each other’s business models. Many of these intrapreneurs went on to create their own successful startups, making PayPal a fertile breeding ground for future talent.
What can companies do?
“Companies should create a culture in which risk-taking and experimentation are encouraged,” says Manuel Niever, Transformation Manager at esentri AG in Ettlingen. “Employees should be encouraged to come up with new ideas and discuss them without fear of negative consequences. Companies need platforms and opportunities to encourage the exchange of ideas and collaboration between employees. This can be done through regular team meetings, innovation workshops, hackathons or internal social media. By building networks, employees can learn from each other, inspire each other and further develop their ideas.”
Very important: communication
Open and transparent communication between employees and managers promotes the exchange of ideas and creates space for feedback and discussion. “A common obstacle when introducing intrapreneurship programs is resistance to change,” according to transformation expert Manuel Niever. “To overcome this resistance, it is important to educate employees about the purpose and goals of the program to build trust.”
time and money
Companies must ensure that they have sufficient resources, such as time, budget and access to expertise, to be able to implement the ideas. “This can be achieved by creating a dedicated budget or reallocating resources from other areas,” suggests Manuel Niever.
Train new skills
Intrapreneurship requires skills such as creativity, entrepreneurial thinking and innovation management. Through training and further education, employees can develop their entrepreneurial skills and knowledge in order to advance innovative ideas and better assess risks. Manuel Niever advises involving external experts or consultants who can contribute their specific expertise and experience if necessary.
Clear processes are a must
Organizations should establish clear processes and guidelines for intrapreneurship to guide employees while allowing flexibility and creativity. According to Niever, the communication of these processes is particularly important: “It should be clear how ideas are submitted, evaluated and implemented. Regular reviews and adjustments to processes can help to identify and improve inefficient processes.”
recognition inspires
An appropriate reward structure motivates employees to develop innovative ideas, implement them successfully and keep employees motivated. To promote intrapreneurship, rethinking traditional reward systems is a first step. “Companies should also recognize and reward innovative ideas and projects,” says Manuel Niever. “This can be done through financial incentives, recognition, promotions or involving employees in strategic decisions.
Managers play an important role
Managers play a crucial role in implementing intrapreneurship as they shape the corporate culture, allocate resources and give employees the freedom and support they need to pursue their entrepreneurial ideas. “Managers should serve as role models for intrapreneurship,” recommends Manuel Niever. “They can show through their own behavior and choices that they are open to new ideas and willing to take risks. By rewarding innovative thinking and encouraging employees to implement their ideas, they create a supportive environment.”
Are you interested in intrapreneurship? You will learn more about this in the CyberForum Academy’s further training in innovation management and product management.