Corporate entrepreneurship is picking up a few nicknames as it becomes a trending topic in discussions. “Intrapreneurship,” a term used by Steve Jobs in a Newsweek article in 1985, will still drive your autocorrects and spell checks crazy.
But a quick online search of the term will find an increasing number of articles racing to define the buzzword for the current era. Why the refreshing discussion on the topic of entrepreneurship inside the walls of a corporation? When well-run, these efforts can be a virtual lottery of profit for the company who manages it correctly. Let’s take a stab at addressing the concept and what it means today.
Jobs was, of course, referring to the Macintosh team, the virtual garage band of loyal workers who were long on hours and ingenuity and provided the basis of a new line of computer products that began to lead the company in new directions.
The Mac team exemplified a culture of innovation and made a good case for a strong investment in talent, coupled with a healthy budget for research and development. In the view of many, this remains the current model for companies today.
But daydreaming about inventing the next Mac, iPod or iPhone might be mitigated by reminders of failures, such as New Coke, Clear Beer, Crystal Pepsi or Netflix spinning off their DVD business to Qwikster, the most recent major blunder by a corporation.
Here are a few steps to take on your path to becoming more tolerant of risk while never forgetting to keep a close eye on the costs.
Empower a team.
Keeping the lines of communications open will inform you of breakthroughs before they happen. Define the goal and how success should be measured. Then establish a funding level and clarify your time horizon to reaffirm the commitment. It will help you monitor progress or regress directly and you’ll be able to spot pitfalls while there’s still time to react.
Consider meeting with different people so that you can gain multiple perspectives. Walk the group’s area and they’ll know they have the interest of top management.
Recognize and cultivate top performers.
Support them with complementary people who think like they do but consider fostering an environment of teamwork, not necessarily one of competition with each other.
Resources for the project need to be ample but not extravagant. The team will understand the venture itself should be considered like a start-up, and while they’ll enjoy the same benefits as your other employees, they may relish the opportunity to “rough it” and be considered noncorporate types.
Reward extraordinary performance.
An opportunity for the team to be compensated based on viable success must be a part of the equation.
Entrepreneurs will be highly motivated to share in the long-term value and upside they create. This also will aid in retaining the capability and high-quality talent in your organization. It will come back to your bottom line in spades, so don’t forget to share. Reward efficiency and frugality as well.
Set the pace.
Set, monitor and share data on progress against agreed upon milestones. Hitting goals will energize the team and provide the necessary information to tweak their overall plan and make adjustments. The allocation of resources can also be measured at this time, and if you’re knocking on the door of a breakthrough, you’ll know it. ?
Tony Arnold is founder and principal of Upfront Management, a St. Louis-based management and executive consulting firm. He can be reached at (314) 825-9525 or email@example.com.