Intrapreneurial Culture and Competitivity Intrapreneurship and Innovation in Organizations Louis Jacques Filion

1. Intrapreneurial Culture and Competitivity Intrapreneurship and Innovation in Organizations Louis Jacques Filion Rogers-J.A. Bombardier Chair of Entrepreneurship HEC Montreal SEBRAE Brasilia September 19, 2008

2. What is Intrapreneurship • Intrapreneurship is entrepreneurship applied within organizations • Like entrepreneurship, it involves: • - Recognition of opportunities • - Project design and implementation • - Innovation • - Risk management • - Added value

3. The five “I”s of Intrapreneurship Implementation Imagination Innovation Information Intention

4. Intrapreneurial Process • The intrapreneurial process is similar to the entrepreneurial process • It is more complex because it is applied in a context where the intrapreneur does not have control over the social system

5. Entrepreneurial Process Innovation Opportunity Recognition Risk Action Use of ressources Added Value

6. Intrapreneurship • Characteristics of intrapreneurs are similar to those of entrepreneurs • Involves the development of intrapreneurial, projective and visionary thinking • Requires entrepreneurial and intrapreneurial competencies Intrapreneurship is more easily applied in a context of corporate entrepreneurship

7. Intrapreneurial Culture (1) • ¤ Valorize innovation: new ways of doing • ¤ Employees have a higher level of • responsibility • ¤ Focus on clients • ¤ Importance of learning • ¤ Support “doers”

8. Intrapreneurial Culture (2) ¤ Tolerance of mistakes in the wake of risk management, not stupidity ¤ Values the presence of entrepreneurs ¤ Rewards success ¤ Shares the earnings

9. Structures that Facilitate Intrapreneurial Expressions • Small units: 200 people • Organic organizational architectures • Lean organizations (few managers) • Project management • Project design • Project implementation • Intrapreneurial training • Intrapreneurial mentoring

10. Intrapreneurship is Action Oriented • Difference betweenaction orientation and activism • Action orientation means: • - Thinking • - Preparation • - Planning • - Implementation • - Results

11. Intrapreneurial Thinking and Visionism • Mental representation of self and of environment plays a key role • Requires a very accurate knowledge of the sector • Systemic thinking that relates parts and combines them to form a whole is a must

12. Visionaries and Visioners Visioners Visionaries Visioners Visioners Visioners Visioners

13. Visioners and Visionaries Visioners Visioners Visionaries

14. Intrapreneurial Practice Culture Commandments Rules Communications Training Mentoring Coaching Use of external consultants and specialists Mecanism to support intrapreneurial initiatives E.g.: 3 M Evaluation criteria for intrapreneurial suggestions Sharing of the results

15. The Intrapreneur’s 10 Commandments (1) 1) It is easier to ask for forgiveness than for permission 2) Do any job needed to make the project work, regardless of your job description 3) Come to work each day willing to be fired 4) Recruit a strong team 5) Ask for advice before asking for resources

16. The Intrapreneur’s 10 Commandments (2) 6) Spread credit wide and celebrate victories 7) When you bend the rules always keep the best interests of the company and customers in mind 8) Recognize and honor your sponsors 9) Underpromise and overdeliver 10) Be true to your goals but realistic about ways of achieving them Gifford Pinchot

17. Management of Intrapreneurial Projects Vision design Project design Business Plans Gathering of information Market surveys Sector analysis Understanding consumers’ needs and trends Feasibility studies Market testing

18. Fight the Corporate Immune System (1) • Identify elements of resistance to change • Identify prohibited subjects of communications • Identify subjects that are regarded as negative • Identify subjects that contribute strong biases to the way the organization and the market are seen

19. Fight the Corporate Immune System (2) • Identify subjects that do not allow people to act • Identify subjects that prevent people from taking action • Identify viewpoints that will lead people to oppose changes Be subtle and find ways to counteract all these elements

20. Counteract Morphine Effects • Things and people that are in your environment but that you do not see • Attitude that prevents learning from environmental changes • Indifference to changes • “Sleeping mind” attitude where people act as if they were asleep • Insensitivity to what is happening Wake things up and get things moving

21. Characteristics of Intrapreneurs • The same as those of entrepreneurs, plus a few more Some characteristics of entrepreneurs Involved Adaptable Resourceful Innovative Sensitive to environment changes Tolerance to risk Sector Knowledge Action oriented Some characteristics of intrapreneurs Conservative risk takers Extensive relations network inside and outside the firm Knowledge of the limits of what is acceptable Push things as far as they will go Users of resources Focus on results

22. Intrapreneurs/EntrepreneursDreamers who do ☻ When I was a teenager, I came early to work to be able to type dreams I wanted to achieve. For example, “I will make one million ships, one million Brazilian planes”. I was determined to carry the Brazilian flag all over the world. I loved to dream. Emerson de Almeida

23. IntrapreneursCreative doers ☻You can recognize intrapreneurs. They are passionate about new ideas and eager to keep learning. Contrary to managers, they get bored doing repetitious tasks. Serban Teodoresco

24. Intrapreneurs/EntrepreneursPrecision Workers ☻ My father is my friend. We planted hundred of trees together. For each tree, you need a hole of 60X40 centimeters. He works with precision. If you need 60 centimeters, it is not 59 or 61, it is 60. Emerson de Almeida

25. Intrapreneurial Competencies Technical Competencies Knowledge of sector Knowledge of products Knowledge of markets Understanding of users needs Conceptual Competencies Systems thinking Analytical capabilities Entrepreneurial thinking Projective thinking Visionary thinking Project design Managerial Competencies Risk management Communication Polyvalence Networking abilities Negotiation Task orientation People orientation

26. Intrapreneurship and Mentoring • Mentoring program, often using dual mentoring: internal and external mentors • Training • Use of outside consultants • Mentoring activities to be completed by coaching activities

27. Intrapreneurial Advisory Board • Advisory board includes members from inside and from outside (entrepreneurs) • Appointment of one person to be responsible for entrepreneurial activities (often part time) (+ budget) • Small advisory boards will eventually be structured around each project

28. From Intrapreneurship to Extrapreneurship • Intrapreneurship and entrepreneurship are forms of leadership • Intrapreneurs learn what is to be learnt to start a business • In fact, many intrapreneurs become business unit managers within existing corporations • Intrapreneurs will become top managers, entrepreneurs or will move on to other intrapreneurial challenges

29. From Intrapreneurship to Spin-offs • The current trend towards subcontracting is leading organizations to develop spin-off programs • Intrapreneurs can become extrapreneurs • Extrapreneurs are more likely to succeed • Mentors and coaches can remain the same • Advisory boards can sometimes remain the same

30. Intrapreneuring as a Strategic Option • Corporations are opting for intrepreneuring to sustain growth instead of achieving it through external acquisitions • Intrapreneuring can be done at all levels of organizations

31. Conclusion (1) • Organizations need intrapreneurs as much as societies need entrepreneurs • Intrapreneurial systems can be developed in the same way entrepreneurial systems • Intrapreneurship leads to sector leadership • Intrapreneurship remains one of the best remedies to fight the morphine effects

32. Conclusion (2) • To be successful, intrapreneurial activities have to be managed very rigourously • There are levels in intrapreneurial expression and we have reached a point where every manager needs to be able to express some level of intrapreneuriability • Most managers and strategists can benefit from intrapreneurial training

33. Conclusion (3) • Organizations need to engage in corporate entrepreneurship practice to benefit from the intrapreneurial potential of their employees • Corporate entrepreneurship facilitates intrapreneurial expression and generates an entrepreneurial culture Intrapreneurship is a win-win process

34. Intrapreneurial Culture and Competitivity Muito obrigado Many thanks Merci beaucoup