ORGANIZATIONAL CHARACTERISTICS THAT ENCOURAGE INTRAPRENEURSHIP

ORGANIZATIONAL CHARACTERISTICS

The single most important factor in establishing
an ‘‘intrapreneur-friendly’’ organization is making
sure that your employees are placed in an innovative
working environment. Rigid and conservative organizational
structures often have a stifling effect on intrapreneurial
efforts. Conservative firms are capable
of operating at a high level of efficiency and profitability,
but they generally do not provide an environment
that is conducive to intrapreneurial activity (and
organizations that do not encourage creativity and
leadership often alienate talented employees). But as
Erik Rule and Donald Irwin stated in Journal of Business
Strategy, companies that establish a culture of
innovation through: 1) formation of intrapreneurial
teams and task forces; 2) recruitment of new staff with
new ideas; 3) application of strategic plans that focus
on achieving innovation; and 4) establishment of internal
research and development programs are likely
to see tangible results.

Other keys to instilling an intrepreneurial environment
in your business include the following:
1) Support from ownership and top management.
This support should not simply consist
of passive approval of innovative ways of
thinking. Ideally,it should also take the form
of active support,such as can be seen in
mentoring relationships. Indeed,the small
business owner’s own entrepreneurial experiences
can be valuable to his firm’s intrapreneurial
employees if he makes himself
available to them.
2) Recognition that the style of intrapreneurialism
that is encouraged needs to be
compatible with business operations and the
organization’s overall culture.
3) Make sure that communication systems
within the company are strong so that intrapreneurs
who have new ideas for products
or processes can be heard.
4) Intelligent allocation of resources to pursue
intrapreneurial ideas.
5) Reward intrapreneurs. All in all,i ntrapreneurs
tend to be creative,dedicated,
and talented in a variety of areas. They are
thus of significant value even to companies
that do not feature particularly innovative
environments. Their importance is heightened,
then,to firms that do rely on intrapreneurial
initiatives for growth. Since
they are such important resources,they
should be rewarded accordingly (both in financial
and emotional terms). For while intrapreneurs
may not want to go into business
for themselves,they still have a hunger to
make use of their talents and a wish to be
compensated for their contributions. If your
small business is unable or unwilling to provide
sufficient rewards,then it should be
prepared to lose that intrapreneur to another
organization that can meet his/her desires for
professional fulfillment.
6) Allow intrapreneurs to follow through. Intrapreneurs
who think of a new approach or
process deserve to be allowed to maintain
their involvement on the project,rather than
have it be handed off to some other person or
task force. Ensuring that the individual stays
involved with the initiative makes sense for
several important reasons. The intrapreneur’s
creativity and emotional investment
in the project can be tremendously
helpful in further developing the process or
product for future use. Moreover,they usually
possess the most knowledge and understanding
of the various issues under consideration.
Most importantly,however, the
small business enterprise should make sure
that its talented and creative employees have
continued input because not allowing them
to do so can have a profoundly moralebruising
impact.