Free Enterprise in the Public Sector - Intrapreneurualism
in-tra-pre-neur (In¹tre-pre-nur) n. A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation [intra(corporate) + (ENTRE)PRENEUR.] -inftrapre-nouri-al adj. -intra-pre-neuri-al-ism n. -in'trapre-neuri-al-ly adv.
From the aforementioned link --------
If we are to get really good problem-solving in our decentralized corporation,- we must introduce a system that gives the decision to those who get successful results., not to the inoffensive ' Such people will be willing to take moderate risks and will be more concerned with achieving results than with gaining influence. These are among the characteristics of the successful entrepreneur. What is needed in the large corporation is not more semi-independent departments run by hard-driving yes men'. but something akin to free market entrepreneurship within the corporate organization.
Here are some principles I predict will prove useful in establishing employee entrepreneurs who work Within the corporation. I will call this new class of intra-corporate entrepreneurs, "intrapreneurs".
(1) To become an intrapreneur, an individual must risk something of value to himself. It may be just the time needed to complete the business plan and preliminary research while carrying out his normal duties. It may in some cases involve financial sacrifices such as having no salary increases until the new business becomes a success, or even a 20% salary decrease until project bonuses arrive. What is risked should be negotiated for each project.
The risk serves several functions. It tests and later increases intrapreneurial conviction and drive. It binds the corporation in an implied contract not to stop the intrapreneur for any reason other than poor performance. Finally, it helps other employees to rationalize the intrapreneur's extraordinary rewards.
(2) The rewards of success in an intrapreneurial project must be shared between the corporation and the
intrapreneur in a well-defined and equitable way. This cannot always be pre-negotiated, as the researcher may not know in advance where his research leads. Therefore, there must be a trusted committee to "buy" completed research from its intrapreneurs for some pre-established fraction of its value to the company as determined by an established accounting system. The integrity and impartiality of this committee must be above suspicion.
(3) The intrapreneur should have the opportunity to build up something akin to capital. The successful intrapreneur would earn in addition to his cash bonus, complete control of a definite amount of R&D funds, funds which he would have a completely free hand in investing on behalf of the corporation in his future R&D projects. We will call these funds, "intra-capital".
People have enormous potential for goodness, for insight, for creativity, for intimacy, and for work. Much of this potential is trapped within the constraints of today’s huge hierarchical organizations. The development of the entrepreneur is a step toward freeing individuals, our organizations, and our society to use our potential for building fuller, more meaningful, richer and more productive lives for us all. The signs of imminent change surround us.
From the aforementioned link --------
If we are to get really good problem-solving in our decentralized corporation,- we must introduce a system that gives the decision to those who get successful results., not to the inoffensive ' Such people will be willing to take moderate risks and will be more concerned with achieving results than with gaining influence. These are among the characteristics of the successful entrepreneur. What is needed in the large corporation is not more semi-independent departments run by hard-driving yes men'. but something akin to free market entrepreneurship within the corporate organization.
Here are some principles I predict will prove useful in establishing employee entrepreneurs who work Within the corporation. I will call this new class of intra-corporate entrepreneurs, "intrapreneurs".
(1) To become an intrapreneur, an individual must risk something of value to himself. It may be just the time needed to complete the business plan and preliminary research while carrying out his normal duties. It may in some cases involve financial sacrifices such as having no salary increases until the new business becomes a success, or even a 20% salary decrease until project bonuses arrive. What is risked should be negotiated for each project.
The risk serves several functions. It tests and later increases intrapreneurial conviction and drive. It binds the corporation in an implied contract not to stop the intrapreneur for any reason other than poor performance. Finally, it helps other employees to rationalize the intrapreneur's extraordinary rewards.
(2) The rewards of success in an intrapreneurial project must be shared between the corporation and the
intrapreneur in a well-defined and equitable way. This cannot always be pre-negotiated, as the researcher may not know in advance where his research leads. Therefore, there must be a trusted committee to "buy" completed research from its intrapreneurs for some pre-established fraction of its value to the company as determined by an established accounting system. The integrity and impartiality of this committee must be above suspicion.
(3) The intrapreneur should have the opportunity to build up something akin to capital. The successful intrapreneur would earn in addition to his cash bonus, complete control of a definite amount of R&D funds, funds which he would have a completely free hand in investing on behalf of the corporation in his future R&D projects. We will call these funds, "intra-capital".
People have enormous potential for goodness, for insight, for creativity, for intimacy, and for work. Much of this potential is trapped within the constraints of today’s huge hierarchical organizations. The development of the entrepreneur is a step toward freeing individuals, our organizations, and our society to use our potential for building fuller, more meaningful, richer and more productive lives for us all. The signs of imminent change surround us.
posted by Pete at 9:21 PM
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