Help Stop the Senseless Killing of Important Innovation

The great business management philosopher Yogi Berra once said, “If you don’t know where you are going, you’ll end up someplace else.”  This is how I feel about the current state of business innovation.  New innovation usually starts out on the right path but often ends up in the ditch.

Innovation is clearly a key driver of organic growth for all companies.  67% of the most innovative companies say innovation is a competitive necessity regardless of sector or geography.  Leading innovators have grown 16% higher then that of the least innovative companies(1).  It’s no wonder that 91% of companies believe innovation is a top strategic priority(2).

It turns out that many organizations actually struggle to bring organic innovation to market.  Even though 84% of executives say innovation is extremely or very important to their companies’ growth strategy, only 39% say their companies are good at commercializing new products or services (3).

Connecting innovation programs (and resulting new inventions) to what happens later with market adoption (and revenue growth) isn’t possible without what happens in between.  My theory is that there is a critical gap … one that is unnecessarily killing many promising innovations.

Not enough is known about the reasons why so many organizations struggle to bring their own organic innovation to market.

With that in mind, I have decided to create  The First Annual Intrapreneurship Benchmark Survey on Commercializing Innovation.  The survey is available immediately and can be accessed at https://www.surveymonkey.com/s/intrapreneurshipbenchmark.  It will collect data to establish new benchmarks.  Once collected, the data will be analyzed and included in a written report.  The full report will be made available to survey respondents.   Highlights will also published later in 2014 in selected business publications as well as on this website.

You can help stop the senseless killing of important innovation too.  After all, “When you come to a fork in the road take it” – also Yogi Berra.

 Take this fork with me.  Seriously, please help me by taking a few minutes of your time to share your experiences in this area by taking the survey.

As always, leave me you thoughts and comments below.

Footnotes:

(1) PWC Report “Breakthrough Innovation and Growth” – September 2013

(2) GE Report “Global Information Barometer” – January 2013

(3) McKinsey & Company Report “Innovation and Commercialization” – 2010

(4) Ernst & Young Report “Igniting Innovation: How Hot Companies Fuel Growth from Within” – 2010

 

What Is An Intrapreneur Anyway?

The word entrepreneur is more than 150 years old, having come into English from French in 1828. But it was not until comparatively recently that its intra-corporate counterpart, intrapreneur, was introduced to the business lexicon.

“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.”

The term is usually credited to Gifford Pinchot (the grandson of the first Chief of The US Forest Service, also the 28th Governor of Pennsylvania, with the same name). According to Mr. Pinchot’s website, in a 1982 The Economist magazine article, Norman Macrae gave credit to Gifford Pinchot as the inventor of the word intrapreneur. Mr. Pinchot went on to publish his book “Intrapreneuring” in 1985. In 1992, The American Heritage Dictionary added Intrapreneur … giving new legitimacy to the term.

There are obvious derivations of the word … Intrapreneurship, Intrapreneurial, Intrapreneuring and even Intrapreneurist (the name of this blog – but I’ll save that explanation for another blog – it’s sort of a John Wayne thing).

In a September 30, 1985 Newsweek magazine interview, Steve Jobs used the term to describe his team, “The Macintosh team was what is commonly known as intrapreneurship, a group of people going in essence back to the garage, but in a large company”).

Wikipedia has embraced and references the original American Heritage Dictionary definition cited above. This definition is by far the best. I give this definition an “A”.  I will make a small tweak or two in my version below but it’s a solid “A” nonetheless. There are strong decision-making and collaboration components in support of the risk taking aspect … and navigating corporate politics make collaboration essential, which is something entrepreneurs don’t have to worry about. Also implied in the definition, is the fact that the role requires strategy, execution and delivery of results.

My tweaked version is: “a person within a large organization who takes direct responsibility for turning an idea (or innovation) into a profitable finished offering through assertive risk-taking and effective stakeholder collaboration.”

Here are some other popular definitions:

Dictionary.com (which is based on the 2014 Random House Dictionary)an employee of a large corporation who is given freedom and financial support to create new products, services, systems, etc., and does not have to follow the corporation’s usual routines or protocols.

My rating is a “C-“. This definition is a little loosy goosy … intrapreneurs may get some latitude but freedom is a stretch. Saying they do not have to follow protocols is also a stretch.

Dictionary.com II (which is based on the 2009 Collins English Dictionary)a person who while remaining within a larger organization uses entrepreneurial skills to develop a new product or line of business as a subsidiary of the organization.

My rating is a “B-“. This definition is tighter. Saying that an intrapreneur develops a new product as a subsidiary does not make sense organizationally though.

Merriam Webster Dictionary: a corporate executive who develops new enterprises within the corporation.

My rating is a “D-“. This definition is too short and limiting. You don’t have to be an executive, and intrapreneurs don’t develop just new enterprises or work in only corporations. Pretty poor for such a prestigious brand. I suppose being too narrow is not as bad as being wrong though.

Speaking of wrong … the usually reliable Investopedia has a rather bizarre definition: An inside entrepreneur, or an entrepreneur within a large firm, who uses entrepreneurial skills without incurring the risks associated with those activities. Intrapreneurs are usually employees within a company who are assigned a special idea or project, and are instructed to develop the project like an entrepreneur would. Intrapreneurs usually have the resources and capabilities of the firm at their disposal. The intrapreneur’s main job is to turn that special idea or project into a profitable venture for the company.

My rating is an “F” (can I rate it lower?). This definition is laughable. Being assigned an idea and instructed to be an entrepreneur is a hilarious notion. It sort of misses the point doesn’t it? … and takes all the initiative out of it. Having all the resources and capabilities at one’s disposal is also an amusing thought.

When I started writing this blog, I did not expect to find such a large disparity of definitions. I was disappointed to find so many uninformed (aka lame) “name brand” definitional sources.

What is your definition?

As always, leave me your thoughts and ideas here.