Note:
A) In this blog the terms enterprises, corporation, large company are use interchangeably.

B) Inter-preneurism is referred to as entrepreneurism inside a corporation.

Fact: Corporations spend large sums of money on internal R&D –

Internal R&D is entrepreneurial/risky. However, it is considered ‘focused’ experimentation.

Fact: Enterprises take far bigger risks in external venture investments –

It is expected that start-ups are risky and highly innovative with a high chance of failure.
As this is an external venture, it will not impact internal focus and revenue.

Fact: Appetite for failure is far higher in external investment –

Fundamentally considered to be high risk and a chance to pay to play.

Fact: To become diverse/innovative, acquisition is the preferred choice –

This is a huge misconception: You can’t inherit or change a rigid organization by acquiring a hip startup

Fact: Corporations are just beginning to realize that innovation is not a one time effort –

They need to transform the culture and foundation of the company to become truly innovative.

And:

Fact: Employees of corporations are hugely talented, creative and capable –

If only given the faith, funding, trust and opportunity massive internal innovation is possible.

Fact: Employees need to be entrepreneurial and ‘drive’ innovation and new products –

Wait less for guidance, roadmaps and rewards and be far more entrepreneurial and take risks.

Fact: When CEO’s drive focus and mission within the company –

They are often urging action and innovation from employees
Corporations AND employees BOTH need to drive Inter-Preneurism
It is about passion, drive, relentlessness and not always about money!

And

Fact: Sometimes you have to recognize what you already have vs. –

Thinking it is somewhere else and you need to go find IT! Great talent lies ‘inside the walls’.
Entrepreneurism is possible both INSIDE and OUTSIDE a company.

Yes, we have a challenge to solve. The leadership of companies need to drive far more internal investments in entrepreneurism and culture change. They need to parallel their external investment risk appetite with internal risk and investments. I want to see a world where VC’s invest in corporate start-ups! I want to see far more new ideas in a corporation get seed funding, spin off, grow, get internal and external funding, get recirculated back into the company and blend new and existing talent to create new technologies and products. Often the blame lies on the shoulders of the CEO and the company leadership only. I’m not sure that is completely fair!?

In ProVoke, we discuss that the Ecosystem of Disruption and Innovation has many stakeholders. The ecosystem is as strong as the strength of its participants. Yes, CEO’s have huge power and responsibility to set the pace and start the investment process, however to do so, not only do they need to be bombarded with passion and new product ideas, but they need to see actual entrepreneurial drive and supporting business plans.

When I work with corporations, I hear the following from my clients: “My company will not invest in our new ideas,” or “My company only does start-up investments outside of our company.” So, I stop and ask them to describe their ideas to me, as if they had come to me for funding. Some of the ideas are great and very innovative. However, the business plan is totally missing. How much effort will this idea take, how much money, tell me about the prototype, what is the revenue expectation, competitors, proof of concept…By the time we are half way in the conversation, interest has been lost and we are off to another topic. This happens most of the time, with some exceptions.

In the outside world, to secure funding the process is painful and hugely time consuming. You often have 10 minutes to present your full business plan to a room of strangers, many times per week, for many months, entertain the doubts and hesitation and not let your passion die. You balance 100 ‘not interested’ replies with a few ‘seems interesting’ nods, and your job is to get the latter group to become super interested. Takes weeks to months to secure the funding and when all this is done, you go after funding again! And you need to convince the market that your product is unique, great, game changing and viable.

Now, let’s bring all this inside of a company. Hell yes, it is painful and takes time! Yes, there are resistances we have to overcome and people we have to convince. Yes, at times it seems impossible until you get the first ‘nod’. Yes, there is a lot of learning involved. And most importantly, this is not a popularity contest. Just because people don’t buy into your idea the first time around, doesn’t mean they don’t like YOU, or that you should hang your hat and walk away… If you are totally passionate about your product and believe that you have the next ‘big thing’ for your company- then don’t give up. Be an entrepreneur without permission. Over the weekend build a prototype, network your ideas, write your business plan. Act as an entrepreneur and find ways to make it work.

And remember: In the outside world, while entrepreneurs do all this, they have no salary, benefits and are putting their money to back their passion and belief.

On the CEO side- no doubt we need to change the game and start looking inside for where the magical ideas may lie, as well as outside. Take Steve Jobs: passion, drive, relentlessness, vision and a total belief that his company, Apple, could deliver. We need to have CEO’s set vision and create new markets.

This is a 2 way street. Easy and convenient to only blame the CEO and senior staff, but let’s be truthful and identify the root cause. Most likely, in order to truly increase inter-preneurism in companies, both parties need to change and create a new culture that allows, nurtures and drives innovation. This is not just about the CEO!

Let’s Disrupt | Innovate | Lead

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