What exactly is an intrapreneurial mindset and how is it different from an entrepreneurial mindset?
This concept is highly intriguing, and if entrepreneurs fully focus on it, it could significantly accelerate the growth of their organisations.
An intrapreneur is an employee who takes full ownership of their work and is self-driven. They drive innovation, seek ways to enhance the company from within, and are often described as employees who go above and beyond. These individuals consistently look for ways to improve the organisation by asking questions like, “How can we do better? How can we improve what’s already in place? How can we go the extra mile?” They actively pursue new opportunities and engage in projects that help propel the organisation forward.
The key difference between entrepreneurship and intrapreneurship is that an entrepreneur is the owner and originator of the business, they develop the idea, start the business, and nurture its growth. In contrast, intrapreneurs help the entrepreneurs enhance and refine these ideas. They help entrepreneurs grow the business by finding innovative and creative ways to improve and expand the organisation.
Benefits for organisations whose executives or workforce operate with an intrapreneurial mindset
There are numerous benefits to having intrapreneurs as employees, as they drive continuous innovation within the organisation. These companies are constantly doing things differently, which not only attracts returning customers but also generates referrals and talking to other people about them, fueling business growth. Additionally, intrapreneurs enhance efficiency by constantly seeking ways to improve processes, particularly if they hold leadership or middle management positions. They are committed to the organisation’s success and are willing to go the extra mile. They focus on streamlining processes, identifying time and product waste, and finding faster, more efficient ways to get work done. With intrapreneurs in your organisation, productivity increases, processes improve, and things are accomplished more swiftly.
Members of staff in the lower cadre who have an intrapreneurial mindset
These qualities can be identified during interviews without the need for formal personality tests. You can spot them by observing how candidates respond to questions and how they engage in the conversation. These individuals are often described as having a “fire in their belly.” Even at the interview stage, they will have researched your organisation and may offer insights into areas that need improvement and suggest better approaches. Intrapreneurs can be found at every cadre, across all levels of the organisation.
Specific strategies or environments that an intrapreneurial mindset thrives in
First, it’s important to cultivate an organisational culture that fosters an intrapreneurial mindset. This involves providing the right opportunities, tools, information, exposure, and training necessary for employees to thrive. When your organisation promotes a culture where individuals often seen as overly involved or eager to engage in various aspects of the business are encouraged and rewarded, it helps nurture and reinforce an intrapreneurial mindset. By creating this environment, you build and promote a culture of intrapreneurial mindset.
Additionally, it’s important to encourage and involve them in relevant discussions, especially after identifying their potential. Ensure they are present in meetings or forums where developmental ideas are being discussed. For instance, if there are discussions around new products or innovations, bring them into a poll, sometimes referred to as “innovation meetings.” Create environments that nurture their ideas, celebrate their contributions, and recognise the success they bring to the organisation. Provide them with the freedom to explore their ideas, but also back them up with the necessary support and guidance. Some individuals may need help refining their concepts to avoid going overboard and overbearing. Leveraging the experience of senior leaders can help in providing constructive feedback and guidance, allowing them to fine-tune their ideas.
Key qualities and skills of a successful intrapreneur and how employees can develop these traits
The entrepreneur is the one who originates the idea, takes the risk to establish the business, and provides the necessary funding, connections, and resources. They are the owners of the business, bearing all the risks and managing the infrastructure and everything else involved in the business.
An intrapreneur is an employee who works in an organisation, believes in the organisation and is willing to go the extra mile to help the entrepreneur improve and grow the business. While entrepreneurs are the primary risk-takers, intrapreneurs can be entrusted with decision-making, though the entrepreneur ultimately bears the risk. Things may go wrong, but such ideas may bring good profit to the organisation. Allowing intrapreneurs to take initiative gives them the opportunity to learn from mistakes. When their ideas succeed, they can generate significant profits for the organisation. Over time, they will refine their approach, learning from past errors to make better decisions in the future.
An entrepreneur is the risk bearer and risk taker, while an intrapreneur is someone who ventures into the risks. However, it is the entrepreneur who faces the consequences if the risks do not pay off. In this dynamic, the entrepreneur serves as the investor, while the intrapreneur works for the investor.
How an intrapreneurial mindset drives innovation within a company
From the customer’s perspective, individuals with an intrapreneurial mindset are proactive problem solvers. This means that when issues arise, you can expect them to generate innovative ideas and creative solutions to address the challenges and find effective ways to get things done.
They are skilled in conducting research, understanding the outcomes, and identifying ways to enhance those findings. Typically, they are very proactive in addressing issues and are willing to take risks by proposing innovative ideas. They might say, “Why don’t we give this a try?” and provide numerous compelling reasons for pursuing it, along with various methods for implementation. Their confidence stems from having thoroughly tested their ideas beforehand, often conducting preliminary assessments or litmus tests. This preparation makes them persuasive, leaving you inclined to give their suggestions a chance.
Also, they believe in themselves and view themselves as the owners of the organisation. They take accountability for their actions, often stating that you can trust them and hold them responsible if things don’t go as planned. As an employer, you may feel inclined to give their suggestions a chance, especially if they have successfully implemented ideas in the past. They excel at gaining buy-in from others and are effective marketers, persuading stakeholders on why their ideas are worth pursuing. Their collaborative approach allows them to delineate tasks “You handle this, and I’ll take care of that” to identify effective solutions. They do not stop even when they fail, they persist and continuously improve their strategies on how to get things done.
Key indicators when measuring the success of implementing an intrapreneurial mindset
People aren’t necessarily born with an intrapreneurial mindset; rather, it is shaped by their upbringing and environment. In today’s generation, children are often not timid, and schools provide opportunities to explore and experiment in diverse ways. These experiences contribute significantly to developing individuals’ mindsets and approaches to how things are done. Therefore, the intrapreneurial mindset is developed over time. Some may possess this mindset without even realising it, but when they are placed in an environment that fosters such qualities, their skills and confidence can flourish.
When an employee joins your organisation, their performance and approach to getting the job done can indicate whether they possess an entrepreneurial mindset. Even during the interview process, as previously mentioned, you can often discern their willingness to go the extra mile to enhance their contributions and focus on the organisation’s growth.
Once they join the organisation, these individuals are often the ones who ask questions and demonstrate curiosity about how things work. They go the extra mile to understand processes and adapt quickly. Their output leads to increased innovation, and they are engaged employees who are enthusiastic about their roles, looking forward to coming to work and getting things done without wasting time.
You can identify them by their inquisitiveness; they ask about how the business operates, how revenue is generated, and where the money goes. They invest their best efforts and are eager to learn seeking knowledge through questions, conversations with colleagues, and understanding how their work and that of others impact the organisation. Additionally, they are willing to take risks and embrace new challenges, serving as the organisation’s risk-takers. All these qualities are key indicators when assessing the effectiveness of implementing an intrapreneurial mindset.
Advice to companies that want to explore intrapreneurship as a strategic tool
Foster a culture that encourages high achievers within the organisation, particularly those with an intrapreneurial mindset, as they are often the high performers. Promote open communication, allowing them to share what they learn, their insights, and how they can apply this knowledge for improvement. As the business owner, leading by example is crucial. When failures occur, avoid using a “sledgehammer to kill a fly” instead, emphasise that setbacks are part of the learning process and express your willingness to let them try again. By doing so, you will develop more people within your organisation.
“This thought leadership piece is culled from the CIPM radio programme, ‘The Office.’ The opinions expressed in this article are solely those of the Guests and do not represent the views of CIPM.”
