Saturday, November 29, 2014

Analyzing Your Intrapreneurship System

By definition, intrapreneurship refers to entrepreneurial activities of employees in their workplace. In other words, behaving like an entrepreneur while working within an organization. Not necessarily large, by the way. Actually, it is usually easier to be an intrapreneur in a small business than in a huge multinational corporation.

An intrapreneur, according to The American Heritage Dictionary is "a person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation". In other words, into a ‘business within a business’ – a product, service, business unit, etc.

In a broader sense, more applicable to a CBA, an intrapreneur is ‘a corporate employee, who turns a potentially profitable idea into a corporate project that generates a significant amount of financial and aggregate value’.  

Why more appropriate? Because of IRACORACI. For your company (or any company, for that matter), it really does not matter how to generate financial value – by increasing revenue with new products and services, avoiding costs, optimizing risks or avoiding increase in working capital.

Therefore, any idea (not just a new product or service) proposed by an intrapreneur that can do at least one of these things, deserves support and implementation.

What needs to be done to maximize financial value created by your intrapreneurs (which can be very substantial) and thus to radically increase the efficiency of utilization of your human capital?  A highly efficient corporate intrapreneurship management system (IMS). Which must include the following four core components:

1.      Personalized and customized intrapreneurship motivation system - comprehensive and well-balanced between financial (e.g, share in cash flows from a new product) and non-financial (emotional) elements.

2.      Idea evaluation system – complete with documentation/presentation requirements; financial valuation models; IRACORACI description; methodology, process and tools; and, last but not the least, highly competent and motivated personnel. The last one is no less vital component of your IMS than the intrapreneurs themselves

3.      Idea implementation system, including financial, operational and business plan templates; highly efficient corporate process; no less efficient support system – financial, managerial, technical and other resources; and, of course, the right procedures for integrating each new intrapreneurial project into your whole business system – with maximum synergy, of course.


4.      Post-implementation evaluation system – with the usual ACRC – analysis, conclusions, recommendations for improving both the results of idea implementation and improvement of your whole IMS supported by the necessary comments and all relevant corporate documentation

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