CHAPTER 19 Intrapreneurship F.W. Struwig Van Schaik

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CHAPTER 19

• Intrapreneurship

F.W. Struwig
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LEARNING OUTCOMES

• Define intrapreneurship
• Differentiate between entrepreneurs and
  intrapreneurs
• Explain how creativity and innovation are related
• List the characteristics of creative people
• List the characteristics of a creative climate in
  a business
• Distinguish among innovation, creativity and
  entrepreneurship
• Mention the actions that are necessary to create
  the ability to innovate in a business

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LEARNING OUTCOMES

• Outline the sources of innovation in a business
• Discuss the intrapreneurial process
• Identify the factors that hamper intrapreneurship
  
• Discuss the intrapreneurial way of leadership
• Briefly outline how to manage intrapreneurship in
  a business
• Discuss how intrapreneurship is implemented in
  the South African business

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DEFINITION OF INTRAPRENEURSHIP

• ...Any of the dreamers who do. Those who take
  hands-on responsibility for creating innovation
  of any kind, within a business. The intrapreneur
  may be the creator or inventor but is always the
  dreamer who figures out how to turn an idea into
  a profitable reality.
• Intrapreneurs are therefore people who put new
  ideas into action within established businesses.
• Although employed in a corporate position
  intrapreneurs are nevertheless given freedom and
  incentives to create and market their own ideas.

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THE DIFFERENCES BETWEEN ENTREPRENEURS AND
INTRAPRENEURS

• Forms taken by intrapreneurship
• Traditional research and development
• The ad hoc venture team
• New venture divisions
• Champions and sponsors
• Acquisitions
• Outsourcing
• Hybrid forms

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ROLES IN INTRAPRENEURSHIP

• Initiator
• Sponsor/facilitator
• Champion/manager
• Team supporter
• Reactor

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FIFTEEN MORE SPECIFIC JOBS

• Researcher/analyser
• Interpreter/strategist
• Visionary/inventory
• Catalyst or leader
• Endorser
• Team player
• Resource provider
• Problem solver

• Co-ordinator
• Negotiator
• Politician
• Change manager
• Missionary
• Opportunist
• Critic/judge

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CREATIVITY AND INNOVATION
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THE CHARACTERISTICS OF CREATIVE PEOPLE

• Bright
• Good at generating many ideas quickly
• Positive self-image
• Sensitive to the world and others
• Motivated by challenges
• Can withhold a decision until facts have been
  collected
• Value independence
• Rich fantasy life
• Flexible
• Concerned with meanings and implications of a
  problem not small details

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THE CREATIVE CLIMATE

• Trusting management
• Open channels of communication
• Contact and communication with outsiders
• Large variety of personality types among
  employees
• Willingness to accept change
• Experimentation with new ideas
• No fear of negative consequences of making a
  mistake
• Merit-based selection/promotion of employees
• Techniques that encourage ideas
• Financial, managerial, human and time resources
  to accomplish goals

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STIMULATING INNOVATION IN THE BUSINESS

• Focus employee intelligence on the product and
  customer
• Enhance subject matter expertise
• Encourage unconventional ideas
• Encourage employees not to fear ambiguity or
  uncertainty
• Avoid forcing employees to explain or justify
  themselves
• Motivate employees in a suitable manner

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THE INTRAPRENEURIAL PROCESS

• Stage 1 Choosing an idea
• Stage 2 Planning the business
• Stage 3 Identifying sponsors - the
  protectors of new ideas

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FACTORS HAMPERING INTRAPRENEURSHIP

• Costs and rewards
• Inertia
• Hierarchy

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THE INTRAPRENEURIAL WAY OF LEADERSHIP

• Important components
• Freedom, democracy and trade-offs
• Making others feel good
• No need for power
• Avoiding conflict
• Sharing the visionary task

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IMPLEMENTATION OF INTRAPRENEURSHIP IN THE SOUTH
AFRICAN BUSINESS

• The individual intrapreneur
• The intrapreneurial team
• The intrapreneurial organisation
• Intrepreneurial outposts