On Intrapreneuring
Are you an intrapreneur? Is your company a good place to be one?
Most innovation doesn't come from small startups in Silicon Valley. Great products are born in big companies too. An intrapreneur is an entrepreneur who operates in a big company. The term first appeared over 30 years in Gifford Pinchot’s book, Intrapreneuring. Being an intrapreneur is exciting and fun. Big companies have built-in advantages that startups can’t match.
But Pinchot found that lots of big companies aren't good at innovation. That’s still true. Why? What are the cultural barriers that stifle innovation in a big company? Should you be an "intrapreneur?"
What an Intrapreneurial Culture Looks Like
Intrapreneuring flipped my view of big companies on its head when I read it in the ‘90s. Pinchot explores and characterizes what makes big companies good at innovation. His observations stand the test of time. But he began with grim news.
"You might think that larger organizations would be stodgy in thinking up new ideas, and, because of a wealth of management talent, would be very good at executing them. The reverse is true. Our large organizations produce lots of good ideas but generally are unable to implement them."
- Gifford Pinchot
Most executives at big companies believe they foster innovation and teamwork. Tribal Leadership suggests that only 27% of these companies are right. Dave Logan, John Kind, and Halee Fischer-Write describe five stages of thriving organizations.
The first three stages, or 77% of companies, foster a culture of individualism. Of “I’m great, and you’re not.” In these cultures, knowledge is power, so people hoard it. The corporate antibodies are too potent for intrapreneurial groups to succeed. The company becomes a collection of “lone warriors.”
Stage Four cultures begin to support innovation. These companies foster a feeling of “we’re great.” Team members are excited about being with other members of the tribe. Everyone seems happy, inspired, and genuine. Begging at Stage Four, leaders feel pulled by the group. Intrapreneuring can flourish at Stage Four. At this stage, teams unite and share a single vision. Team members see new ideas as advancing the company mission, not individual aspirations.
Stage Five cultures form an even stronger innovation canvas. These companies are rare, 2% of companies. Their ambition revolves around infinite potential and how the group will make history. This group’s mood is “innocent wonderment.” In a Stage Five culture, the team competes with what’s possible, not with each other. Stage Five cultures are rare, but they’re the best place to be an intrapreneur.
Intrapreneurial Cultures Embrace Curiosity
Most big company executives like the idea of failing fast. But in a traditional company, fast is slow. The processes of established companies favor long-term planning, consensus, and alignment. By contrast, entrepreneurs experiment, test, failure, learn and evolve. Quickly. Intrapreneurs use failure, debate, and debacle as inspiration. The entrepreneurial process is almost invisible, constant, fluid.
Pinchot contrasts traditional versus intrapreneurial processes like this:
Think about your planning horizon. Do you plan once a year or every morning in the shower? If you generate and act on new ideas in momentary flashes of insight, you might be an intrapreneur.
A Sponsor is an Entrepreneur's Board of Directors
Entrepreneurs have a board of directors; intrapreneurs have executive sponsors. Sponsors fight off corporate antibodies that crush ideas. Sponsors help intrapreneurs get access to the data they need. Sponsors help recruit the right type of people for intrapreneurial teams.
If you aspire to be an entrepreneur in a big company, find a sponsor. A good sponsor will give you frank and sometimes painful feedback. They will see the big picture of how you can help impact the company mission. They will remove obstacles for you.
And sponsors will help you get access to data. In 1985, Pinchot could not have envisioned the deluge of data available today. In a big company, intrapreneurs need access to information. Traditional organizations protect data about customers, market trends, and leads. Intrapreneurial organizations unlock access so intrapreneurs can discover innovation opportunities.
Do you have the DNA of an Intrapreneur or a Traditional Manager?
Intrapreneurs and traditional managers are different. Pinchot identified 18 personality traits of successful intrapreneurs. I converted his framework into this Intrapreneurial DNA survey. Take it to uncover if you have the DNA of an intrapreneur. The questions themselves make you think! It takes 5-7 minutes, and it's free.
A score of 65 or more indicates an intrapreneurial mindset. The score isn't intended to be "good" or "bad." But there is utility in it. Sponsors can use the questions to staff innovative projects. As an individual, a high score could encourage you to take on an innovation role. A low score might encourage you to take a more traditional role.
The survey uses Pinchot's original framework of 18 intrapreneurial characteristics. I've published it with permission from the author.
The 10 Commandments of Intrapreneuring
If you choose the path of an entrepreneur, it's not an easy one. You'll need to break some eggs. Pinchot's "10 Commandments of Intrapreneuring" provides a Northstar for intrapreneurs.
ONE: Come to work each day willing to be fired (and have a plan B). Entrepreneurs are bold. They take risks. Many big companies don't attract risk-takers. Intrapreneurial companies do. Don’t take this too literally, though! Intrapreneurs don’t take unnecessary risks and always have a plan B.
TWO: Circumvent any orders aimed at stopping your mission. New efforts in big companies get attacked. Get ready for them. Circumvent those attacks. Don't waste energy on doubters. Use your sponsor to keep them at bay.
THREE: Do any job needed to make your project work, regardless of your job description. Ron Shaich, CEO and founder of Panera Bread, started selling cookies from his 400-square foot store in Boston, The Cookie Jar. He stood outside his store, selling cookies. He listened to customers and adjust recipes based on what he heard. He had three employees, but he did every job. No job is too small.
FOUR: Find people to help you. Intrapreneurs need sponsors and mentors. Sponsors fund and push your agenda. Mentors help with advice. Both will have your back. A way to test if a sponsor is good is to share these commandments! Discuss them. Do they seem to "get it?" You be the judge.
FIVE: Hire Intrapreneurs. When you build a team of intrapreneurs, choose talent and passion. Keep the team small yet functionally complete. Think like three people in a garage.
SIX: Work underground as long as you can. Publicity triggers the corporate immune mechanism; startups stay in stealth mode for a reason. It’s easier to learn and fail in private.
SEVEN: Never bet on a race unless you are running in it. True innovation can take years. As an intrapreneur, take a long view of success. Ideas are a dime a dozen. Idea execution takes time, work, and lots of failure. Don't rush.
EIGHT: Remember, it’s easier to ask for forgiveness than for permission. The corporate immune system will always say no. Take risks with your sponsor’s support. See point (4).
NINE: Be true to your goals, but be realistic about the process required to achieve them. Venture investors fund innovation in waves: A, B, C, and D rounds. At each stage, the idea gets progressively more mature. “A” rounds are experimental. The goal of an “A” round is to create version 1.0 of your product, which usually suck (that’s expected). B rounds are for proving your idea in the market. The exit criteria for a B round is referencable customers. These phases can take years. Don’t go too big too soon. Be realistic.
TEN: Honor your sponsors. Find leaders who are intrapreneurs. Work with them. Set up regular “board meetings.” Call on them when you’re stuck.
Being an entrepreneur in a big company can be as fun as being in a startup. And rewarding. And valuable. But only if the conditions are right. Have fun!
