Intrapreneurship is an upcoming trend that is distinguishing companies that are serious about growth, from those that are not. It applies the principles of entrepreneurship, within the structure of a firm. The intrapreneur is responsible for the innovation and development of ideas, to create a substantiative outcome that helps the company.
Here are three reasons why you should encourage the budding intrapreneurs in your company:
Engaging Your Employees
Our studies have shown that the level of engagement of employees with the company has a direct impact on the various parameters that measure its success. Performance factors such as productivity and profitability, are influenced by engagement levels, regardless of the industry the company operates in. Even in the face of tough economic situations, such as the pandemic, employee engagement has been a decisive factor regarding the performance of any company.
If the workers are disengaged, they do not make any substantiative efforts to help the company tide over, in the case of a recession. However, workers who are genuinely engaged in the work they do are more likely to constructively better the company, since they are invested in its growth. This is the reason why engaged workers are also the most productive.
The question then to ask ourselves, is how can we motivate the millennial workforce? Engagement can be increased by motivating and rewarding intrapreneurship. When young intrapreneurs witness the impact of their innovation in the company, it will encourage them to continue on their path. On top of that, rewarding the innovation can also be a great motivator to engaged workers, since it is incentivizing their efforts.
Steady Flow of Ideas Gives Competitive Edge
If innovation is limited to the C-suite or a few top members, it severely undermines the company's potential for growth. The implementation of ideas has to be more democratic within the company and the genesis for innovation has to come from a larger pool. Since the senior leadership is usually out of touch with the needs and demands of the end-users, their innovative ideas might not always be beneficial.
Intrapreneurship can aid the process of innovation by making it a way of life within the company, rather than a rare occurrence. To ensure that the process actually leads to fruitful conclusions, the approach has to be thoroughly detailed. Employees should have the support of the company to develop their concept. Intrapreneurship motivates the planning of ideas and their assessment. Moreover, resources can only be allocated if there are tangible plans set for the employees to develop further. Through intrapreneurship, a constant flow of ideas can be maintained, which can be developed further, as and when required by the company. Incorporating these ideas into your organization ensures that you gain a competitive edge.
Think About Sustainability in the Long Term
Our studies have found out that 88% of the companies belonging to the Fortune 500 group, in 1995, had become defunct in 2015. In the span of twenty years, companies had to pack their bags and leave. Any organization wishes to build a business model that still keeps them afloat after 10-20 years. Studying the plan of action and drawing inspiration from businesses that have maintained their position can be a good way of understanding long-term sustainability. Building for a sustainable model from the very start is an important aspect to be considered.
Foreseeing the trends and placing your company accordingly is important for remaining afloat. Especially, when the market is as competitive as it is today. Most companies miscalculate the viability of their action plans and are forced to go under. Technology has also exponentially increased the pace of change. Thus, if ideas are not manufactured and nurture within the ecosystem of the company, it is quite possible that it may harm the sustainability of the company. Companies have to rigorously question themselves and the process of intrapreneurship that they have established. The merits and demerits of these systems should be debated thoroughly.
The Bottom Line
The system of entrepreneurship, but internally in the company, is a win-win scenario for everyone involved. It can be a challenging prospect, but the potential benefits are immensely lucrative. Therefore, companies should look towards intrapreneurship with an open mind.<< back to Blog