Intrapreneurial Culture and Competitivity

Intrapreneurship and Innovation in Organizations

Louis Jacques Filion

Rogers-J.A. Bombardier Chair of Entrepreneurship

HEC Montreal

SEBRAE

Brasilia

September 19, 2008

Intrapreneurial Culture and Competitivity

Intrapreneurship and Innovation in Organizations

Louis Jacques Filion

Rogers-J.A. Bombardier Chair of Entrepreneurship

HEC Montreal

SEBRAE

Brasilia

September 19, 2008

What is IntrapreneurshipWhat is Intrapreneurship

• Intrapreneurship is entrepreneurship applied within organizations

• Like entrepreneurship, it involves:

- Recognition of opportunities

- Project design and implementation

- Innovation

- Risk management

- Added value

• Intrapreneurship is entrepreneurship applied within organizations

• Like entrepreneurship, it involves:

- Recognition of opportunities

- Project design and implementation

- Innovation

- Risk management

- Added value

The five “I”s of IntrapreneurshipThe five “I”s of Intrapreneurship

Information

Intention

Imagination

Implementation

Innovation

• The intrapreneurial process is similar to the entrepreneurial process

• It is more complex because it is applied in a context where the intrapreneur does not have control over the social system

• The intrapreneurial process is similar to the entrepreneurial process

• It is more complex because it is applied in a context where the intrapreneur does not have control over the social system

Intrapreneurial ProcessIntrapreneurial Process

Entrepreneurial ProcessEntrepreneurial Process

Innovation

Opportunity Recognitio

n

Risk

Added Value

Use of ressource

s

Action

Intrapreneurship is more easily applied in a context of corporate entrepreneurship

IntrapreneurshipIntrapreneurship

• Characteristics of intrapreneurs are similar to those of entrepreneurs

• Involves the development of intrapreneurial, projective and visionary thinking

• Requires entrepreneurial and intrapreneurial competencies

• Characteristics of intrapreneurs are similar to those of entrepreneurs

• Involves the development of intrapreneurial, projective and visionary thinking

• Requires entrepreneurial and intrapreneurial competencies

Intrapreneurial Culture (1)Intrapreneurial Culture (1)

¤ Valorize innovation: new ways of doing ¤ Employees have a higher level of

responsibility

¤ Focus on clients¤ Importance of learning¤ Support “doers”

¤ Valorize innovation: new ways of doing ¤ Employees have a higher level of

responsibility

¤ Focus on clients¤ Importance of learning¤ Support “doers”

Intrapreneurial Culture (2)Intrapreneurial Culture (2)

¤ Tolerance of mistakes in the wake of risk management, not stupidity

¤ Values the presence of entrepreneurs

¤ Rewards success

¤ Shares the earnings

¤ Tolerance of mistakes in the wake of risk management, not stupidity

¤ Values the presence of entrepreneurs

¤ Rewards success

¤ Shares the earnings

Structures that Facilitate Intrapreneurial ExpressionsStructures that Facilitate Intrapreneurial Expressions

• Small units: 200 people• Organic organizational architectures• Lean organizations (few managers)• Project management• Project design • Project implementation• Intrapreneurial training• Intrapreneurial mentoring

• Small units: 200 people• Organic organizational architectures• Lean organizations (few managers)• Project management• Project design • Project implementation• Intrapreneurial training• Intrapreneurial mentoring

Intrapreneurship is Action OrientedIntrapreneurship is Action Oriented

• Difference between action orientation and activism• Action orientation means:

- Thinking - Preparation - Planning - Implementation - Results

• Difference between action orientation and activism• Action orientation means:

- Thinking - Preparation - Planning - Implementation - Results

Intrapreneurial Thinking and VisionismIntrapreneurial Thinking and Visionism

• Mental representation of self and of environment plays a key role

• Requires a very accurate knowledge of the sector • Systemic thinking that relates parts and combines them to form a whole is a must

• Mental representation of self and of environment plays a key role

• Requires a very accurate knowledge of the sector • Systemic thinking that relates parts and combines them to form a whole is a must

Visioners

Visionaries

VisionersVisioners

Visioners

Visioners

Visionaries and VisionersVisionaries and Visioners

Visioners

Visionaries

Visioners

Visioners and VisionariesVisioners and Visionaries

CommunicationsTraining

Mecanism to support intrapreneurial initiatives

E.g.: 3 M

CultureCommandments

Rules

MentoringCoaching

Use of external consultants and specialists

Evaluation criteria for intrapreneurial

suggestions

Sharing of the results

Intrapreneurial PracticeIntrapreneurial Practice

The Intrapreneur’s 10 Commandments (1)The Intrapreneur’s 10 Commandments (1)

1) It is easier to ask for forgiveness than for permission

2) Do any job needed to make the project work, regardless of

your job description

3) Come to work each day willing to be fired

4) Recruit a strong team

5) Ask for advice before asking for resources

1) It is easier to ask for forgiveness than for permission

2) Do any job needed to make the project work, regardless of

your job description

3) Come to work each day willing to be fired

4) Recruit a strong team

5) Ask for advice before asking for resources

The Intrapreneur’s 10 Commandments (2)The Intrapreneur’s 10 Commandments (2)

6) Spread credit wide and celebrate victories

7) When you bend the rules always keep the best interests of the

company and customers in mind

8) Recognize and honor your sponsors

9) Underpromise and overdeliver

10) Be true to your goals but realistic about ways of achieving

them

Gifford Pinchot

6) Spread credit wide and celebrate victories

7) When you bend the rules always keep the best interests of the

company and customers in mind

8) Recognize and honor your sponsors

9) Underpromise and overdeliver

10) Be true to your goals but realistic about ways of achieving

them

Gifford Pinchot

Gathering of informationMarket surveysSector analysisUnderstanding

consumers’ needs and trends

Vision designProject designBusiness Plans

Feasibility studiesMarket testing

Management of Intrapreneurial ProjectsManagement of Intrapreneurial Projects

Fight the Corporate Immune System (1)Fight the Corporate Immune System (1)

• Identify elements of resistance to change• Identify prohibited subjects of communications• Identify subjects that are regarded as negative• Identify subjects that contribute strong biases to the way the

organization and the market are seen

• Identify elements of resistance to change• Identify prohibited subjects of communications• Identify subjects that are regarded as negative• Identify subjects that contribute strong biases to the way the

organization and the market are seen

Fight the Corporate Immune System (2)Fight the Corporate Immune System (2)

• Identify subjects that do not allow people to act• Identify subjects that prevent people from taking action• Identify viewpoints that will lead people to oppose changes

• Identify subjects that do not allow people to act• Identify subjects that prevent people from taking action• Identify viewpoints that will lead people to oppose changes

Be subtle and find ways to counteract all these elements

Counteract Morphine EffectsCounteract Morphine Effects

•Things and people that are in your environment but that you do

not see•Attitude that prevents learning from environmental changes•Indifference to changes•“Sleeping mind” attitude where people act as if they were

asleep•Insensitivity to what is happening

•Things and people that are in your environment but that you do

not see•Attitude that prevents learning from environmental changes•Indifference to changes•“Sleeping mind” attitude where people act as if they were

asleep•Insensitivity to what is happening

Wake things up and get thingsmoving

Some characteristics of entrepreneurs

InvolvedAdaptable

ResourcefulInnovative

Sensitive to environment changes

Tolerance to riskSector Knowledge

Action oriented

Some characteristics of intrapreneurs

Conservative risk takersExtensive relations network inside and outside the firm

Knowledge of the limits of what is acceptable

Push things as far as they will go

Users of resourcesFocus on results

Characteristics of IntrapreneursCharacteristics of Intrapreneurs

• The same as those of entrepreneurs, plus a few more• The same as those of entrepreneurs, plus a few more

☻ When I was a teenager, I came early to work to be able to type dreams I wanted to achieve. For example, “I will make one million ships, one million Brazilian planes”. I was determined to carry the Brazilian flag all over the world. I loved to dream.

Emerson de Almeida

Intrapreneurs/EntrepreneursDreamers who doIntrapreneurs/EntrepreneursDreamers who do

☻You can recognize intrapreneurs. They are passionate about new ideas and eager to keep learning. Contrary to managers, they get bored doing repetitious tasks.

Serban Teodoresco

IntrapreneursCreative doersIntrapreneursCreative doers

☻ My father is my friend. We planted hundred of trees together. For each tree, you need a hole of 60X40 centimeters. He works with precision. If you need 60 centimeters, it is not 59 or 61, it is 60.

Emerson de Almeida

Intrapreneurs/EntrepreneursPrecision WorkersIntrapreneurs/EntrepreneursPrecision Workers

Technical Competencies

Knowledge of sectorKnowledge of

productsKnowledge of

marketsUnderstanding of

users needs

Conceptual Competencies

Systems thinkingAnalytical capabilities

Entrepreneurial thinking

Projective thinkingVisionary thinking

Project design

Managerial Competencies

Risk managementCommunication

PolyvalenceNetworking abilities

NegotiationTask orientation

People orientation

Intrapreneurial CompetenciesIntrapreneurial Competencies

Intrapreneurship and MentoringIntrapreneurship and Mentoring

• Mentoring program, often using dual mentoring: internal and external mentors

• Training• Use of outside consultants• Mentoring activities to be completed by coaching activities

• Mentoring program, often using dual mentoring: internal and external mentors

• Training• Use of outside consultants• Mentoring activities to be completed by coaching activities

Intrapreneurial Advisory BoardIntrapreneurial Advisory Board

• Advisory board includes members from inside and from outside (entrepreneurs)• Appointment of one person to be responsible for

entrepreneurial activities (often part time) (+ budget)• Small advisory boards will eventually be structured around each project

• Advisory board includes members from inside and from outside (entrepreneurs)• Appointment of one person to be responsible for

entrepreneurial activities (often part time) (+ budget)• Small advisory boards will eventually be structured around each project

From Intrapreneurship to ExtrapreneurshipFrom Intrapreneurship to Extrapreneurship

•Intrapreneurship and entrepreneurship are forms of leadership

•Intrapreneurs learn what is to be learnt to start a business

•In fact, many intrapreneurs become business unit managers

within existing corporations

•Intrapreneurs will become top managers, entrepreneurs or will

move on to other intrapreneurial challenges

•Intrapreneurship and entrepreneurship are forms of leadership

•Intrapreneurs learn what is to be learnt to start a business

•In fact, many intrapreneurs become business unit managers

within existing corporations

•Intrapreneurs will become top managers, entrepreneurs or will

move on to other intrapreneurial challenges

From Intrapreneurship to Spin-offsFrom Intrapreneurship to Spin-offs

•The current trend towards subcontracting is leading

organizations to develop spin-off programs•Intrapreneurs can become extrapreneurs•Extrapreneurs are more likely to succeed•Mentors and coaches can remain the same•Advisory boards can sometimes remain the same

•The current trend towards subcontracting is leading

organizations to develop spin-off programs•Intrapreneurs can become extrapreneurs•Extrapreneurs are more likely to succeed•Mentors and coaches can remain the same•Advisory boards can sometimes remain the same

Intrapreneuring as a Strategic OptionIntrapreneuring as a Strategic Option

• Corporations are opting for intrepreneuring to sustain growth instead of achieving it through external acquisitions

• Intrapreneuring can be done at all levels of organizations

• Corporations are opting for intrepreneuring to sustain growth instead of achieving it through external acquisitions

• Intrapreneuring can be done at all levels of organizations

Conclusion (1)Conclusion (1)

•Organizations need intrapreneurs as much as societies need

entrepreneurs

•Intrapreneurial systems can be developed in the same way

entrepreneurial systems

•Intrapreneurship leads to sector leadership

•Intrapreneurship remains one of the best remedies to fight the

morphine effects

•Organizations need intrapreneurs as much as societies need

entrepreneurs

•Intrapreneurial systems can be developed in the same way

entrepreneurial systems

•Intrapreneurship leads to sector leadership

•Intrapreneurship remains one of the best remedies to fight the

morphine effects

Conclusion (2)Conclusion (2)

• To be successful, intrapreneurial activities have to be managed very rigourously

• There are levels in intrapreneurial expression and we have reached a point where every manager needs to be able to express some level of intrapreneuriability

• Most managers and strategists can benefit from intrapreneurial training

• To be successful, intrapreneurial activities have to be managed very rigourously

• There are levels in intrapreneurial expression and we have reached a point where every manager needs to be able to express some level of intrapreneuriability

• Most managers and strategists can benefit from intrapreneurial training

Intrapreneurship is a win-win process

• Organizations need to engage in corporate entrepreneurship

practice to benefit from the intrapreneurial potential of their

employees

• Corporate entrepreneurship facilitates intrapreneurial

expression and generates an entrepreneurial culture

• Organizations need to engage in corporate entrepreneurship

practice to benefit from the intrapreneurial potential of their

employees

• Corporate entrepreneurship facilitates intrapreneurial

expression and generates an entrepreneurial culture

Conclusion (3)Conclusion (3)

Intrapreneurial Culture and CompetitivityIntrapreneurial Culture and Competitivity

Muito obrigado

Many thanks

Merci beaucoup

Muito obrigado

Many thanks

Merci beaucoup