Reaping The Benefits Of Internal Entrepreneurship

Some of the world’s most successful companies were created by, propelled by, or focused on intrapreneurship. For example, Google and 3M encourage employees to spend 15% to 20% of work time pondering innovation outside of assigned duties.

We’ve covered the “who” and “what” of intrapreneurship, and highlighted ways to integrate it. Now, we’ll explore the ever-important “why.”

Catch Problems Before Customers Do.

Ole M. Daugbjerg is the Chief Reputation Officer at Danfoss, a Denmark-based multinational maker of mechanical and electronic components. He pioneered “Man on the Moon”, a program that challenges employees to create and present business plans. Winners’ designs are incorporated into the company. In an interview with Ernst & Young, he brought up a great point:

“If you want a sustainable company, you have to start solving problems that your customer may not be aware of yet. The idea is that 20 years from now, your current customers won’t be able to live without you.”

If customers notice an issue, whether in products or in quality of staff and service, they’re more likely to turn. These problems can often be recognized by members of the company. Employees bring a unique, but efficient, perspective because of their special internal role.

Focus On The Big And Small.

Very rarely does one “strike gold”. Rather, growth, especially healthy growth, should come in time, as a result of small, practical steps.

“Small” is no derogatory term. If a company generally experiences success, its only problems may be “small” in nature, and solutions may include:

• Switching brands to reduce cost
• Becoming conscious of energy & resource consumption
• Learning the best ways to tap into employee talents for increased productivity
• Means of achieving production, efficiency and reducing risk/accidents
• Allowing telecommuting to reduce office size and other bills.

Small problems are often simple to solve. The issue lies in bringing them to the attention of the right person. Individuals can make an effort to, say, switch off the lights when they leave the office, but they can’t solve the problem alone.

Recognizing issues allows employees to make positive changes in their everyday lives. And when employees are happier, the company runs more smoothly and efficiently.

Big problems are usually more obvious, but the solution may not be. Enlisting help of employees who specialize in a specific area, for example, could lead to solutions no outsider would consider.

Invest In Yourself.

You can play the stock market all day, but chances are you won’t retire within the next three months. A more realistic option is to invest in something that’s already in front of you—the company.

Internal entreprenruialism is just such an opportunity. If the company believes they’ve hired intelligent, creative people, then the confidence to show trust is empowering. This is a gamble in a sense, but one over which you have a lot more control.

Challenge Conventional Thinking.

A lot of marketers have Marketing degrees. Many managers studied Management. While some standardization and basic knowledge is necessary, it can lead to stagnation. Challenging the norm isn’t easy, but when a variety of people are encouraged to do so, chances for success increase.

Internal entrepreneurism is a safe, efficient way to go against the grain. By asking HR, administrative assistants, whomever you employ, to think about something they may not normally consider, you could be surprised by the answers you receive.

Engage Employees.

The literature on employee satisfaction and performance is endless, and most will tell you engaged employees are happy employees, and happy employees are satisfied, productive and loyal. Just a few statistics:

• The Washington Post states job satisfaction is at its lowest in two decades
• Qualitrics finds that lack of participation, coordination and sharing are among the top 10 predictors of dissatisfaction
• An APA report indicates 64% of employees are satisfied with their level of control/ involvement, while 60% are content with their involvement in decision-making, problem-solving and goal-setting
• The same report indicates 46% are satisfied with growth, advancement and development opportunities. This is identified as the second-highest stress factor in the workplace
• Society for HR Management reports “opportunities to use skills and abilities” is the most important factor relating to job satisfaction.
• The same society reports half of employees feel completely engaged at work.

The Bottom Line:
employee satisfaction leads to better staff, less mistakes, lower turnover, and a happier customer. Embracing an intrapreneurial culture is undoubtedly one way to involve workers.

The Numbers Don’t Lie.

Regardless of whether you choose to tap into this asset, employees exist. And they bring with them a lifetime of experience, education, and tradition.

Some companies have seen huge success:

• GM workers suggested 44,000 ideas in just one quarter and one plant saved $900K using employee suggestions
• A scientist at 3M developed Post-it notes after discovering a new glue that was sticky, but not too sticky. It’s now one of their top products
• A flight attendant’s observation of customer habits inspired J. Willard Marriott of the Marriott Hotel Chain to develop prepackaged boxes for flyers—today’s famous “airline food”
• NutraSweet, a billion-dollar product, was discovered accidentally by a scientist trying to develop an anti-ulcer drug for Searle Pharmaceutical Company. It’s since become one of its most profitable products.

Give It A Shot.

You might not come up with the next Post-It Note by next week, but that’s okay. There are endless possibilities for improvement! And if you think one idea is too small, wait until you have fifty!