Dear subscriber,
We had a fruitful session of "Maintenance Cost Reduction Strategies" workshop on Monday and Tuesday. Thanks again for everyone who supported us.
Today I would like to share with you an interesting concept of "Intrapreneuring", you are about to discover how "Intrapreneurship" can help you to release the entrepreneurial spirit within your corporation.
If you miss out the last issue on the fable 'The Emperor's New Clothes', you can always view it at GIN Newsletter Archive.
Sincerely,
Joe Liam
GIN Malaysia
"Don't ever let anyone tell you that something is too competitive. Once you subtract the people who don't work very hard, or the people who aren't as good as you, your competition shrinks dramatically."
- Maggie Mason
What Does “Intrapreneurship”
Means To Your Organisation?
Intrapreneurs vs entrepreneurs
It was reported in The Straits Times on 1 November 2003 that Mr Tharman Shanmugaratnam, Singapore's Acting Minister for Education, has expressed his support that “as much as we need entrepreneurs, we also need employees who are willing and able to drive a business”. How true. Indeed, the employees are often unsung heroes of a healthy organization.
“Intrapreneurship” was first coined in 1985 by Mr Gifford Pinchott III in his ground-breaking book entitled “Intrapreneuring”.
He defined Intrapreneurs as “any dreamers who do. They are those who take hands-on responsibility for creating innovation of any kind within an organization. The intrapreneur may be the creator or inventor but is always the dreamer who figures out how to turn an idea into a profitable reality.” An entrepreneur, on the other hand, is simply “someone who fills the role of an intrapreneur outside the organization”.
Just what EXACTLY do intrapreneurs do in my organization?
In addition to their daily routine work, they experiment with their own ideas on how to make certain products or services within an organization, faster, better or cheaper; and also come up with new products or services.
Like an entrepreneur, an intrapreneur is not driven by a desire to strike it rich. They are passionate about seeing through their ideas to fruition. Everything else is secondary. While they may be passionate, they are nevertheless not foolhardy. Calculated risks will usually be taken, but supported in part by some skills set and a certain degree of competency.
True intrapreneurs typically ascribe to some sort of “code of honour or ethics” beyond which they will never cross. They are so consumed by their “underground projects” that they could not care less about prestige, office politics and empire building.
How tough can life be for you as an intrapreneur?
It is sometimes more rewarding and successful than an entrepreneur when an intrapreneur's ideas build upon the business of his/her employer. Without an existing business, those ideas will not be relevant or workable. By building on the existing business' products or services, your appetite for risk of failure can be moderated. Access to proprietary technology and your organization's marketing and distribution channels can increase your likelihood of success.
Also, it is a lot easier to seek internal funding and support from supervisors, colleagues and friends who are aware of your capabilities. In many ways, it is almost like a practice session at being an entrepreneur, but your company is footing the bill.
Like entrepreneurs, the life of an intrapreneur is not exactly a bed of roses. Mr Pinchot III listed the following 10 commandments for intrapreneurs:
1. Come to work each day willing to be fired
2. Circumvent any orders aimed at stopping your dreams
3. Do any job needed to make your project work, regardless of your job description
4. Find people to help you
5. Follow your intuition about the people you choose, and work only with the best
6. Work underground as long as you can – publicity triggers the corporate immune mechanism
7. Never bet on a race unless you are running in it
8. Remember it is easier to ask for forgiveness than for permission
9. Be true to your goals, but be realistic about the ways to achieve them
10. Honour your sponsors
I'm convinced. So what do I need to do to nurture intrapreneurs in my organization?
Mr Tharman also added that the effort of nurturing intrapreneurs is “not a one or two-year project or a way to get out of the current down-cycle in the economy”.
So how exactly could we go about doing it?
As the leader of your organization or a small unit in a large organisation, you will need to clearly define and communicate the vision and strategy of your organization or unit. Let your people know what you are looking for and where do they fit into your plans. Perhaps it might not be a perfect fit, but some level of compatibility ought to be present.
Next, look at every level of your organization for these intrapreneurs. They may be dressed in pin-stripped suits or work overalls. They come in all shapes and sizes. What matters more is that they have what it takes to add value to your organization. Do whatever it takes to encourage them. For example, set up an internal venture capital fund to support their ideas. While times might be tough right now, corporate slack or buffer resources might still be hidden somewhere.
"The intrapreneur may be the creator or inventor but is always the dreamer who figures out how to turn an idea into a profitable reality."
Then, tear down as much red tape as possible that could stifle creativity and innovation in your organization and put in place clearly defined responsibilities instead. Let them “just do it” and not be too preoccupied with seeking permissions. For example, can they use non-standardized vendors? In other words, the ends justify the means, albeit within certain tolerable parameters. Another aspect of this is the ease of individuals from various functions coming together to form ad-hoc autonomous teams. Work with your HR manager in these areas.
In a new work environment such as this, an employee's job security now hinges on whether or not he/she can value-add to an organization through the demonstration of “intrapreneurship”. In fact, this is being fair to the employer. After all, if you cannot contribute to an organization, why are you there at all? But beware of empire building or lack of teamwork where a good idea from one department was not passed on to another department who could potentially benefit from it.
Finally, an employer ought to be fair to the employee as well. Intrapreneurs need to be rewarded with new career paths that fit their work style, and monetary quantum that adequately compensates their demonstrated efforts. For example, intrapreneurs might not be cut out to be line or functional managers. If so, they must not be rewarded through a traditional promotion for two simple reasons. If you do so, you will lose an intrapreneur. In addition, you will gain a lousy manager. These two reasons alone will bring trouble to your organization. The Peter Principle often comes to mind: “Everybody is promoted to their level of incompetence”.
"Like an entrepreneur, an intrapreneur is not driven by a desire to strike it rich. They are passionate about seeing through their ideas to fruition."
Also, your organization must tolerate experimental failures and systematically learn from these failures to avoid repeating them. No projects are not without risk of failure. Be prepared to focus on achieving results over time. Allow the intrapreneurs to see through their projects till completion. This provides satisfaction and ensures that it is championed till the end.
In closing, I would like to quote Mr Pinchott III who wrote, “For the right person, intrapreneuring is exhilarating as well as addicting, combining as it does the resources and security of an corporation with the freedom and creativity of the entrepreneur”.
Author's Bio
Mr. WAYNE SOO
CPA ( Singapore ), CA ( Malaysia ), PNA ( Australia ), FCCA, FCMA
MBA ( Manchester ), Certified Management Consultant (CMC), ACFE (Associate), MSID, AMIArb.
Wayne is a Certified Public Accountant in public practice. His niche CPA firm provides various value-added professional services to the boards and managements of SMEs and MNCs alike, both in Singapore and Malaysia alike.
He can be reached at hw.soo@pacific.net.sg or visit www.freewebs.com/waynesoo/
