Intrapreneurship helps both the employee and the employer unlock their hidden potential and take the innovation route
Are you planning to quit your job to realize your dream of becoming an entrepreneur? Think again. You may get the “freedom” to hone your entrepreneurial skills within your workplace itself.
As Indian companies across sectors devise new strategies to compete in the global marketplace, they are learning the importance of retaining their best brains at any cost. They are tapping, like never before, into the most valuable resource at their disposal – the idea bank of their best employees. Not only this, big businesses are taking to 'decentralization' in a big way, slicing their behemoth operations into small units, each run independently by the new-age manager – the intrapreneur.
| DARE/who is an intrapreneur? |
| 1. (S)he loves the freedom to think beyond the obvious 2. (S)he adopts unconventional routes to process functioning 3. (S)he speaks his mind 4. (S)he builds or runs the business as his own 5. (S)he is a risk-taker 6. (S)he tries to kill bureaucracy 7. (S)he lacks the fear of failure 8. (S)he is a team player 9. (S)he thrives on innovation 10. (S)he is a self-motivator |
Management consultant Gifford Pinchot coined the word ‘intrapreneur’ back in 1978. He later dealt at length on the subject in his bestselling book, Intrapreneuring: Why You Don’t Have to Leave the Corporation to Become an Entrepreneur. Pinchot elaborated on the importance of freedom to think and act within a corporation. He also showed how companies could stay on the leading edge by fostering intrapreneurship at all levels of corporate hierarchy.
“Dynamic and competitive business environments of modern organizations are increasingly pressurizing them to become more receptive to novel ideas, approaches and attitudes,” says Ganesh Natarajan, Deputy Chairman and Managing Director, Zensar Technologies.
The intrapreneurial genome
The twin efforts on the idea and responsibility front are bearing fruits. Letting their employees air freely even their wildest thoughts are turning shop floors into fertile grounds for innovation. At the same time, giving intrapreneurs a free hand in running business units equals to quenching their desire of having their own startups. Agrees Natarajan. “The fact that rapid and cost-effective innovations are the only source of gaining and sustaining competitive advantage is ensuring that large organizations move towards encouraging intrapreneurship amongst their employees,” he says.
| HCL Technologies |
| Talent Transformation and Intrapreneurship Development, the training wing at HCL, has initiated a number of organizationally strategic programs that help employees at every level to get opportunities to discover and explore the intrepreneur within them. IGen and Value Creation Portal: Employees are encouraged to come forward with implementable ideas that would add value to the engagements that they are working for. The Eagles Program: Aimed at grooming high performance managers, who would be the torchbearers of intrapreneurship in the organization. “Employees are the assets at HCL and there is a constant quest to promote an intrapreneurial culture that fosters creativity and innovation, encourages proactive and collaborative behavior that ultimately increases the level of engagement of our employees,” says Anand Pillai, Vice President & Global Head- Talent Transformation & Intrapreneurship Development, HCL Technologies. |
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“Companies need to ask people to be creative, and praise employees who try things differently, irrespective of the outcome.” — Robert B Tucker President, the innovation resource |
Many of Zensar’s innovative ideas have been born out of its intrapreneurship efforts that have found their way into successful scaling up and commercialization. Zensar’s Solution BluePrint (SBP), a unique framework that automates the software engineering process, began as an effort of some individuals. Similarly, “Google has an intranet where every employee can post their ideas. Toyota gets a million ideas a year from its rank and its file workers. A manager has to manage them from his heart. They don’t care how much you know, until they know how much you care about them,” says Robert B Tucker, President, The Innovation Resource.
Take the example of Vineet Nayar, CEO, HCL Technologies. Nayar began his career with the tech major in 1985. Shiv Nadar, the then President of HCL Tech took note of Nayar’s “leadership skills and provided him an opportunity to satisfy his entrepreneurial quest within the organization.” In 1992, Nayar set up HCL Comnet, a 100% subsidiary of HCL that dealt in remote infrastructure management and allied services. There are many such examples, both at the global and national level. It is widely believed that Jack Welch, the legendary chairman of General Electric, built the company’s engineering plastics business as his own company, in true intrapreneurial spirit. Many intrapreneurs move out of their mentor organizations to start their own businesses after gaining invaluable skills at running key operations.
Free flow of ideas is the essence of intrapreneurship. Companies play the role of mini-incubators – testing ideas, doing feasibility studies, and providing unequivocal support in converting the thought process into new products or services. “It is the process by which an individual or a team in an existing organization pursues new ideas and opportunities that results in new businesses/revenue streams for the organization or significantly improves the quality or reduces the cost of its products or services,” says K Kumar, Professor at IIM Bangalore.
| Zensar Technologies |
Vision Community: A voluntary participativeforum of motivated individuals with capability and commitment to contribute to the organization. Innovation Forum: Associates are encouraged to think innovatively and are supported by the management at all levels. “Many of Zensar’s innovative ideas have been born out of its intrapreneurship efforts that have found their way into successful scaling up and commercialization,” says Ganesh Natarajan, Deputy Chairman and MD, Zensar Technologies. |
Despite the impression that intrapreneurship works only in IT companies, which run fast on the innovation treadmill, it is not so. Companies from sectors as diverse as BPO, banking, foods, pharma, electronics and auto are upbeat on the benefits on intrapreneurship. While the goals remain the same, the levels and style of freedom may vary for different verticals. “In the context of the BPO industry, intrapreneurship separates the men from the boys,” says Ranjit Pisharoty, Senior VP (Global Technology, Transitions & Strategic Programs), Sutherland Global Services. “It is the spirit of ownership, innovation and ‘value release’, brought about by the creative engagement of individuals and teams that drives excellence in service delivery, leading to breakthrough growth,” he says.
| DARE/how to foster intrapreneurship? |
| Decentralize: The key to efficient management and quick decision-making lies in allocating responsibilities to team leaders and section heads. Autonomy is the key. Create a culture: It is for the top management to make intrapreneurship an inalienable part of the company’s work culture. Trickle-down effect: It’s a top-down approach. Intrapreneurship practices percolate down the corporate hierarchy. Time to think: Your employees’ mind is a valuable resource. Give them time to think fresh thoughts. Freedom of expression: Lend ears to your employees. Let them express their ideas through various channels, such as forums, idea boards, etc. Reward out-of-the-box ideas: Even applause on the shop floor may be enough to send the message out that great ideas are welcome. Motivate risk-takers: Those who have the courage to implement novel ideas, even if they sometimes go wrong, should be praised for their entrepreneurial pursuit. Do not discriminate: A good idea can come from anyone within the corporate hierarchy. Don’t classify ideas as good or bad based on the persons it come from. Promote innovation: Be it products or services, help employees devise new ways of innovation. Though not all innovations are good, each one is a learning experience. Supply resources: Provide financial, technical and motivational support to those with the entrepreneurial gene. Most of them will value the support they get. |
Intrapreneurship can thrive in public sector companies as well. In fact, many employees in public sector companies move off the conveyor belt to operate independently. It is just that they have to push a little harder, as Indian bureaucracy is a tough nut to crack. Delhi Metro Managing Director E Sreedharan is a case in point. He can be called a public-sector intrapreneur. Leading from the front, Sreedharan has built Delhi Metro with his efforts. He has ensured that clearances from various government departments come flying. He also promotes the culture of “autonomous” functioning within the organization, and delegates responsibilities to operational heads. More than anything, it is the strong willpower that separates an intrapreneur from an ordinary employee.
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