4 min read
The opinions expressed by the entrepreneur's contributors are their own.
Most of us are familiar with the concept of being an entrepreneur. It can be a challenging journey, and understandably not everyone wants to take on this responsibility. But what if we could encourage this entrepreneurial spirit among our employees? The situation is possibly a win-win situation – for the employee and for the company.
Intrapreneurship is the system in which the principles of entrepreneurship are practiced within the confines of a company. An intrapreneur is a person who takes responsibility for innovating new ideas, products and processes or new inventions within the organization.
Here are three reasons why intrapreneurship is important to long-term business success.
Related Links: Large Corporations That Embrace Intrapreneurship Will Succeed
1. Employee engagement
In Gallup's 2016 meta-analysis report, the results showed that regardless of the company's industry, employee engagement consistently affects key performance outcomes, such as company profitability.
Jim Harter, Ph.D., Gallup's Chief Scientist, Employee Engagement and Wellbeing, says, “Employee engagement is an important indicator of business performance even in a difficult economic climate. If you ask people about their intentions during a recession, it's pretty clear that laid-off workers are just waiting to see what happens. However, committed employees have made up their minds about what the organization is about and are trying to make a difference. That is why they are usually the most productive workers. "
And how do we create engagement?
Intrapreneurship can be an effective strategy for keeping millennials at work.
When an intrapreneur sees that his idea is valued by his organization, the feeling arises that he can positively influence the future of the company and ultimately increase motivation. Then, when you implement a system that rewards innovation, you have employees who are incentivized.
Related Links: How Companies Can Promote Intrapreneurship
Continuous flow of ideas to stay competitive
If only a few people in a company, such as B. the executives and C-Suite, are able to develop and implement ideas, the innovation potential of a company is considerably limited. In many cases, the management level is far removed from the end user and their wants and needs.
Intrapreneurship is consistently based on a larger pool of ideas. Innovation doesn't have to be a once or twice a year process, but a way of life to really benefit from the returns.
Take Google for example. Intrapreneurial successes have included: Gmail, Google News, AdSense, Driverless Cars, and Google Glass.
For this to work, a focused innovation approach must be chosen. There needs to be a system in place to assess the ideas, as well as the budget and time available to employees to develop them and provide proof of concept.
Related Links: 4 Ways To Build A Culture That Supports A Future-Proof Business
Crucial for long-term sustainability
According to Deloitte, 88% of Fortune 500 companies are no longer present in 2015 in 1955. To understand what needs to happen to make sure you will be in business in five to ten years, you can take inspiration from highly innovative companies and watch what they do.
Do you remember the search engine, Ask Jeeves? I am doing that now. You can't find it anymore. Google may not have been the first search engine, but it definitely worked.
Organizations often learn the hard way how important this is. Nowadays companies can no longer afford complacency or staying in your comfort zone. The giant blockbuster is a good example of what happens when we don't foresee trends. This is all the more important today as technology is exponentially increasing the pace of change.
It is time for companies to really ask themselves what they are doing to drive intrapreneurship. More importantly, what is the lost opportunity cost if you don't nurture it?