Intrapreneurship is best defined as the practice of engaging in entrepreneurial endeavors within your company or organization. This includes but is not limited to developing and introducing new items, products, or services.
In the late 1970s, business authors Gifford and Elizabeth Pinchot developed the term “intrapreneurship” to describe employees in large, highly organized businesses who defied conventional expectations by innovating and operating independently, despite their hierarchical working environments.
Intrapreneurs take the initiative to start new projects or ventures within their company to create value and improve performance. They are not content with the status quo and often make their jobs easier by engaging in problem-solving initiatives. Intrapreneurship can be a weapon for creating change and innovation within a company. That said, it can also be challenging to balance.
This article will discuss the characteristics involved in intrapreneurship, how to make the transition, and helpful resources to help encourage more employees to take the jump within their own companies.
Gmail: A case study on Intrapreneurship
The story of Gmail is a perfect example of intrapreneurship in action. The real hero of our story is someone named Paul Buchheit, an engineer at Google in the early 2000s. Paul was a low-level engineer who had come to Google after purchasing Deja.com, a video site he worked on as part of his university studies.
He was working for Google for several months before he came up with the idea known today as Gmail – an online email platform that would give people unlimited storage space.
Instead of introducing his findings to the higher-ups in the company, Paul decided to build out the internet prototype himself. He demonstrated it to high-level managers one at a time over lunch meetings. Eventually, 15 people used the service when Larry Page and Sergey Brin found out about it.
They encouraged Buchheit “to let hundreds, then thousands of Googlers use this system.” He wanted to make email more useful for everyone, so he decided to take intrapreneurship into his own hands and create something better.
Bucheit is a perfect example of intrapreneurship in action. He was acting like an entrepreneur within the company, despite his position. This story of intrapreneurship can encourage employees who might be considering taking a similar path to him.
What are the benefits of intrapreneurship to businesses?
Intrapreneurship can be a dynamic tool for bringing change and innovation to a company. When a corporate culture of intrapreneurship is encouraged and promoted, it can lead to a multitude of benefits for businesses, including:
1. Increased creativity and productivity: Intrapreneurs are often more creative than employees who lack the desire to come up with new ideas and solutions to problems. Intrapreneurship often results in more productivity since these individuals are frequently more driven than other workers.
2. Increased innovation: Intrapreneurs are very important to businesses as they have the ability and drive to solve vexing issues creatively. Intrapreneurs frequently bring innovative viewpoints to existing problems suggesting novel solutions to help companies stay competitive. This competitive edge is uniquely driven by encouraging the creativity and development of new products and services within the organization. Intrapreneurs are often highly resourceful when working within tight budgets and creative constraints in projects/operations.
3. Increased employee loyalty: Intrapreneurship attracts entrepreneurial-minded individuals, who will likely be more loyal to the company if they have a say in its innovation. When employees feel like they have input or creative ownership of an idea, they tend to stick around longer, increasing job satisfaction due to their passion-driven creativity.
4. Increased sales: Intrapreneurship can increase sales as these individuals seek to find new customers and markets for the company’s products and services. The intrapreneur’s motivation and willingness to take the initiative can boost revenues by utilizing reinvestment strategies or creating cost-cutting measures.
5. Better quality control: Intrapreneurs are often determined to try and offer excellent service, which may lead to better product design, customer relationship management, and other business operations. Due to the nature of the position, intrapreneurs must be passionate and know when to take risks to achieve higher results.
What issues exist in organizations that don’t encourage intrapreneurship?
Companies that do not encourage intrapreneurship are missing out on immense growth opportunities. We should examine the present Fortune 500 companies to see why intrapreneurship is essential in producing more innovation. According to Grimshaw’s article, “The cost of not including intrapreneurs in your company,” 88 percent of the companies that started in 1955 are no longer operational or relevant today. We can attribute a large percentage of this statistic to the fact that intrapreneurs are often under-supported or not recognized by management.
Employees who feel that their company won’t hear their thoughts or opinions will be less likely to help the company grow. These employees may feel they do not have a say in the direction of their company and that intrapreneurship is only available to those with connections and inside knowledge.
Companies that do not encourage intrapreneurship may experience higher employee turnover rates and decreased job satisfaction. An employee who feels stifled or unappreciated at work might seek employment elsewhere, causing the loss of valuable employees and skills. They may not feel a sense of ownership or connection to the company, leading to a lack of fulfillment and belonging.
Companies that don’t encourage employees to think outside the box may be less innovative, as intrapreneurship is often a driver of innovation. There should be many intrapreneurial opportunities available for managers and associates at companies so that experienced and dedicated individuals can continue to bring new ideas and initiatives to the table.
How to successfully transition into intrapreneurship in your organization
An employee can transition into an intrapreneurship role by seeking other opportunities. If specific intrapreneurial options aren’t readily available within your company or organization, there are many different ways to implement this ideology.
Employees can test the waters by taking the initiative at work, developing new ideas or solutions to problems, and seeing how the company acknowledges it. Often, implementing this transition helps employees gain the attention and trust of their managers and employers, which can successfully help them transition into more permanent intrapreneurship roles within the company. Here are a few tips for employees who want to make the transition from employee to intrapreneur within their company:
1. Look outside your company for intrapreneurship opportunities. Many resources are available to those interested in this ideology, such as enrolling in online programs, obtaining certifications, or joining organizations focused on intrapreneurship.
2. Deliver solutions. Your boss knows about problems. Take the initiative at work and develop new ideas or solutions to problems. Taking these steps can help employees gain the trust of their managers and employers to transition into intrapreneurship roles within the company successfully.
3. Don’t be afraid to fail. A trait that intrapreneurs and entrepreneurs have in common is a passion for experimentation. Both believe that trying many different alternatives is vital in producing creative breakthroughs but frequently entails failure.
The downside of intrapreneurship
It’s no secret that employees may need specific skills related to their intrapreneurship goals before officially taking a role in the company. For example, an intrapreneur working in sales may need to take time during the day or week for networking events, conferences, or working through business plans. Intrapreneurs working for a startup may need to work longer hours during the beginning phases of the startup, depending on the timeline and how much innovation or development is required.
Successful intrapreneurs often have to learn to work under pressure and solve problems quickly—Learning how to grow and adapt quickly when plans change is essential to this job position. The intrapreneurial journey is not always easy, as these types of employees deal with unexpected failures and challenging business situations daily. They must be persistent to keep moving forward towards their overall goals.
Intrapreneurship isn’t for everyone. This culture can be demanding, as it requires employees to stand out and take risks at their current jobs. Intrapreneurs need managers and coworkers who understand what they are trying to accomplish when they most likely will not. Furthermore, Intrapreneurs mustn’t burn bridges or make enemies at their current job if those managers/coworkers do not share the same vision.
Programs & certifications available for aspiring Intrapreneurs
Many companies that have jumped on the intrapreneurship train include AT&T, Sony, Toyota, and Dreamworks— which allows their employees to make pitches at the beginning of meetings. Google offers intrapreneurship training courses for its employees along with many lanes of intrapreneurial opportunities.
If your company doesn’t directly provide intrapreneurship opportunities, there are still plenty of resources for those interested in taking this path, including graduate programs and certifications. Here is a list of a few to look into:
1. The League of Intrapreneurs offers a four-day event celebrating and connecting aspiring intrapreneurs globally. Attendees get the opportunity to meet unlikely allies, including CEOs, shamans, inventors, and storytellers who all see the world through similar views. An excellent opportunity for someone who wants to learn more and connect with other like-minded individuals.
2. The Intrapreneurship Certification Program at the University of California, Berkeley is an intensive session that teaches individuals how to establish, lead, and maintain a culture of innovation. You’ll learn how to gather innovative ideas and techniques for innovating in goods, services, and workplace policies.
3. General Assembly hosts several intrapreneurship events and workshops a year geared towards advancing social business innovation within large and established institutions. They describe it as a collaborative project that will connect corporate staff, social entrepreneurs, and others from the non-profit and public sectors to develop expertise and methods for improving social business innovation in organizations of all sizes.
4. Startup Institute offers an Intrapreneurship Immersion Program designed for professionals who want to advance their careers in the innovation economy. This program gives individuals the experience with one of four tracks based on today’s most in-demand jobs, such as UX & Web Design, Digital Marketing, Sales & Account Management, and Web Development. In addition to fundamentals training to enable high-growth work or be an effective “intrapreneur,” students also get hands-on experience and mentorship within a startup setting.
5. The Online Intrapreneurship Certificate Program by Cornell University is intended for mid-level professionals who want to develop and extend their influence or move into leadership positions, for managers and leaders in charge of resource investments,
process improvements, or priority changes at the C-level. It is also helpful for CEOs and VPs interested in establishing an innovative culture and competitive advantage, consultants, and analysts.
6. The School of Berkeley Haas offers an MBA program on Innovative Leadership Development for interested individuals. Students’ skills in this program are very similar to those developed by its apprentices. The program nurtures these skills through a solid foundation in general management basics. They give great attention to working as part of a team and leading it. They also tailor their studies to enhance existing talents and knowledge base.
7. The University of Texas Dallas offers a 3-credit graduate course covering entrepreneurship and intrapreneurship, focusing on identifying, evaluating, and developing new business prospects independently and within a corporate setting.
8. IMD offers an incredible certification program that enables organizations to stay ahead of the competition, allowing them to be more agile and innovative. Teams undergoing this training will understand the disruptive forces and trends that impact their industry and discover new business opportunities.
9. M-ACCELERATOR’s Entrepreneurship Startup Program offers you an excellent opportunity to develop yourself professionally under the leadership of highly experienced mentors and advisors.
10. If programs and certifications are too costly right now, there are many alternative programs online at an affordable price. For example, Udemy offers a course called “Intrapreneurship 101: skills for entrepreneurs on the inside” that is more manageable and less of a commitment for full-time working professionals.
Intrapreneurship is an excellent way for employees to develop skills necessary for entrepreneurship while still using those skills inside their company. This mindset is often critical to developing growth within a company because it brings new ideas to the table and encourages innovation.
That said, intrapreneurship is not without its downfalls. Intrapreneurs may find it challenging to implement these ideologies due to a lack of support within the company. Remember that intrapreneurial projects need help from upper management before they can become successful. If you succeed in getting an intrapreneur idea pushed through, everyone must be on board to prevent the team from getting overworked or over-stressed.
Finally, intrapreneurship requires utmost dedication and commitment, especially considering these opportunities may not exist inside your company yet. While many resources help you transition into an intrapreneur in your organization, it’s still essential to nurture your entrepreneurial instincts and act on them.
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