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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. What is Intrapreneurship.

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slide1

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

slide2

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
slide3

The five “I”s of Intrapreneurship

Implementation

Imagination

Innovation

Information

Intention

slide4

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
slide5

Entrepreneurial Process

Innovation

Opportunity Recognition

Risk

Action

Use of ressources

Added Value

slide6

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

slide7

Intrapreneurial Culture (1)

  • ¤ Valorize innovation: new ways of doing
  • ¤ Employees have a higher level of
    • responsibility
  • ¤ Focus on clients
  • ¤ Importance of learning
  • ¤ Support “doers”
slide8

Intrapreneurial Culture (2)

¤ Tolerance of mistakes in the wake of risk management,

not stupidity

¤ Values the presence of entrepreneurs

¤ Rewards success

¤ Shares the earnings

slide9

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
slide10

Intrapreneurship is Action Oriented

  • Difference betweenaction orientation and activism
  • Action orientation means:
        • - Thinking
    • - Preparation
    • - Planning
    • - Implementation
    • - Results
slide11

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
slide12

Visionaries and Visioners

Visioners

Visionaries

Visioners

Visioners

Visioners

Visioners

slide13

Visioners and Visionaries

Visioners

Visioners

Visionaries

slide14

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

slide15

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

slide16

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

slide17

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

slide18

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
slide19

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

slide20

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

slide21

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

slide22

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

slide23

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

slide24

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

slide25

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

slide26

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
slide27

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
slide28

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
slide29

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
slide30

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
slide31

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
slide32

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
slide33

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

slide34

Intrapreneurial Culture and Competitivity

Muito obrigado

Many thanks

Merci beaucoup

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