Growth is the enemy of good ideas. As your company gets bigger and more complex, it’s tempting to proceed with business as usual and ignore the innovative thinking that made you successful in the first place. But it doesn’t have to be all-or-nothing. Established companies can be innovative too.
Here are four ways that mid-sized and large firms can promote intrapreneurship—getting employees to think like entrepreneurs—amongst their staff.
Build idea labs
“We have three labs where we actually bring people together to try new ideas. You have to pick the individuals carefully. Labs need people who love to bounce around ideas and who are happy in their skin. And they need a healthy mix of new grads, experienced people and co-op students. The mix of idea people and doers is also critical. The leaders need to know how to help individuals and teams create new ideas, try them fast and then pick the best ones. Finally, senior management must keep an open mind and stay involved as new ideas grow into opportunities. Intrapreneurship is difficult at the best of times, but a lab creates a place where everybody in the company can see something special is happening.”
—Eugene Roman, chief technology officer, Canadian Tire, Toronto
Change how you think about failure
“Organizations need to commit to becoming entrepreneurial and recognize the benefits of it. But they also need to recognize the downsides of it. Failure is a big one, and this is a challenge for large companies. They say they want to become more entrepreneurial, but they don’t want to fail. Traditionally, when someone tries something new and it doesn’t work out, the organization responds by reprimanding them and discouraging them from trying new things to avoid failure. In order to innovate, companies need to recognize the possibility of failure and recast it as learning, and change the collective mentality of how they view failure.”
—J. Robert Mitchell, associate professor of entrepreneurship education, Ivey Business School, London, Ont.
Run pitch competitions
“We have a few competitions across various departments that help foster the spirit of intrapreneurship. We’ve run 14 Telus Improvement Day events since 2012, which have generated over 130 ideas. Team members get to work on short-to-medium-term business improvement ideas, and come up with a rough assessment of the financial impact and an implementation plan. They then present their ideas to a panel of VP judges, who select an idea to be implemented. One example of a winning proposal was the simplification of the packaging around our SIM cards. We removed a large terms and services booklet, and digitized it, reducing print costs and waste, and saving around $1¯million annually.”
—Kevin Banderk, vice-president of mobility marketing, Telus, Toronto
Give employees time for passion projects
“All organizations create routines, and innovation requires new routines, so it’s difficult. Routines allow you to operate efficiently—keep doing the same things over and over again without thinking about it—but they get in the way of trying to do something new. To overcome that challenge, you have to give people the opportunity to participate in what’s called skunk works.’ That means employees can work on something outside of supervision and just try it out. It may be during part of the normal workday, at night or on the weekend, but basically you get to do something your traditional manager doesn’t pay attention to. And it may be one person working on it or a small team of people. It’s used in a lot of firms because people just want to mess with things without supervision. When somebody comes up with something they want to share, it’s useful to have some sort of semi-formal process they can submit ideas to. If the project is interesting, the firm can give the employee money and formal time off to work on it.”
—William Mitchell, professor of strategic management, Rotman School of Management, Toronto
MORE IDEA-GENERATING STRATEGIES:
- Unleash the Innovation Hiding in Your Company »
- How to Nurture Intrapreneurship »
- The 20% Solution »
- Startups Aren’t the Only Innovators »
- How to Harvest Your Staff’s Ideas »
How do you promote intrapreneurship within your business? Share your strategies and tactics using the comments section below.